UPS (NYSE:UPS) today announced second quarter 2012 diluted earnings per
share of $1.15, a 7.5 percent improvement over the 2011 adjusted results. U.S.
Domestic operating profit expanded $122 million or 12 percent over the
prior-year period. On a reported basis, diluted earnings per share
increased 5.5 percent and U.S. Domestic operating profit rose 14 percent.
"Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion," said Scott Davis, UPS chairman and CEO. "Throughout its history, UPS has maintained its strength in all economic cycles and we are making the adjustments necessary to respond to today's challenging conditions."
During the quarter, UPS made several announcements regarding its proposal to acquire TNT Express. Plans for financing the purchase were disclosed in May and the formal Offer Memorandum was filed in June. Earlier this month, the company announced it was moving to a Phase II review as there are certain areas that the European Commission requires more time to analyze.
UPS expects to close on the transaction during the fourth quarter.
For the six months ending June 30, UPS generated $3 billion in free cash flow, an increase of more than $600 million over the same period last year. Capital expenditures were $949 million. UPS repurchased 11.3 million shares for approximately $870 million and paid dividends totaling $1.1 billion, a 9.6 percent increase per share over the prior year.
UPS ended the quarter with $7.3 billion in cash and marketable securities as it prepares to complete the acquisition of TNT Express.
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