UPS (NYSE:UPS) today announced record 2012 fourth quarter and full year
adjusted diluted earnings per share of $1.32 and $4.53 respectively,
with the U.S. Domestic segment leading the way. The company generated
annual free cash flow of approximately $5.4 billion, a testament to
operations execution and the emphasis UPS places on capital efficiency.
UPS estimates that Hurricane Sandy reduced earnings per share by
approximately $0.05.
UPS recorded a fourth quarter mark-to-market, non-cash, after-tax charge
of $3.0 billion for its company-sponsored pension and post-retirement
benefit plans. Although the plans exceeded their expected rate of
return, these incremental gains were more than offset by a 120 basis
point decline in year-end discount rates. As a result, on a GAAP basis,
diluted earnings per share for the quarter fell to a loss of $1.83. For
the full year, reported diluted earnings per share were $0.83. This
adjustment does not affect cash flow, required pension funding or
benefits paid to plan participants.
"2012 presented its challenges, most notably weak global trade.
Nonetheless, UPS executed well, delivering superior service to
customers," said Scott Davis, UPS Chairman and CEO. "Despite modest
macro growth expectations for 2013 and uncertainty in the U.S. caused by
the lack of progress in Washington, the UPS business model will deliver
consistent results, with operating profit growth in all segments."
UPS expects full year earnings per share to be within a range of $4.80 -
$5.06, an increase of 6-to-12% compared to 2012 adjusted results. The
company also raised guidance for 2013 share repurchases from $1.5
billion to $4.0 billion.
