UPS announced second quarter 2012 diluted earnings per share of $1.15, a 7.5-per-cent improvement over the 2011 adjusted results. U.S. Domestic operating profit expanded $122 million or 12 per cent over the prior-year period. On a reported basis, diluted earnings per share increased 5.5 per cent and U.S. Domestic operating profit rose 14 per cent. “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.”
Adjusted consolidated revenues during the quarter ended June 30, 2012 were $13.35 billion, versus $13.19 billion during the year-ago quarter. Operating profits of $1.79 billion were recorded, versus $1.75 billion during the year-ago period.
Outlook
“The company’s performance was mixed during the second quarter,” said Kurt Kuehn, UPS’s Chief Financial Officer. “The results in the U.S. Domestic and Supply Chain and Freight segments were partially offset by the weakness in International. “As we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down,” Mr. Kuehn continued. “Consequently, we are reducing our guidance for 2012 diluted earnings per share to a range of $4.50 to $4.70, an increase of 3 per cent to 8 per cent over 2011 adjusted results.”