|UPS Announces Expected 4Q Results|
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Higher Costs Driven by Surge in Shipments and Weather;
On a reported basis, 2013 diluted earnings are expected to be
U.S. results were negatively impacted by the challenges of the compressed peak season coupled with an unprecedented level of online shopping that included a surge of last-minute orders. In an effort to maintain service standards and commitments, UPS took extraordinary measures deploying additional equipment and people. For example, the company utilized 85,000 temporary employees, 30,000 more than planned. Also, weather events in December weighed on results.
Despite fourth quarter performance, the company is confident of its 2014
outlook. UPS expects full-year 2014 diluted earnings per share to grow
in line with its long term targets of 10-to-15%, compared to 2013
adjusted results. Further details will be provided when the company
releases earnings on
UPS Chairman and CEO
UPS routinely posts investor announcements on its web site -- www.investors.ups.com -- and encourages those interested in the company to check there frequently.
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range
of solutions for the transportation of packages and freight, including
innovative delivery options for the global consumer market; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures, including, as applicable, "as adjusted" operating profit, operating margin, pre-tax income, net income and earnings per share. The equivalent measures determined in accordance with GAAP are also referred to as "reported" or "unadjusted.” We believe that these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to, our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. Furthermore, we use these adjusted financial measures to determine awards for our management personnel under our incentive compensation plans.
We supplemented the presentation of our year-to-date 2013 operating
profit, operating margin, pre-tax income, net income and earnings per
share with similar measures that excluded the impact of certain
transactions. In the first quarter of 2013, we recorded transactions
related to our attempted acquisition of
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for GAAP operating profit, operating margin, net income and earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the preceding reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Except for historical information contained herein, the statements made
in this release constitute forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements,
including statements regarding the intent, belief or current
expectations of UPS and its management regarding the company's strategic
directions, prospects and future results, involve certain risks and
uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward-looking statements,
including economic and other conditions in the markets in which we
operate, governmental regulations, our competitive environment,
negotiation and ratification of labor contracts, strikes, work stoppages
and slowdowns, changes in aviation and motor fuel prices, cyclical and
seasonal fluctuations in our operating results, and other risks
discussed in the company's Form 10-K and other filings with the