UPS says accounting charge will cut 4Q results

AP News
Posted: Jan 27, 2012 9:03 AM
UPS says accounting charge will cut 4Q results

UPS says a charge related to a new method of accounting for pensions and retirement plans will significantly reduce its reported earnings for the fourth-quarter and full year of 2011.

The Atlanta company expects to record a pretax $827 million charge in the fourth quarter. That will cut earnings per share by 51 cents for the quarter and 41 cents for the year.

Under the new method, UPS Inc. will take gains and losses in the year they're incurred rather than over time.

The accounting change will add 3 cents per share to its adjusted fourth-quarter results and 12 cents per share to adjusted full-year results, however.

Analysts polled by FactSet had expected adjusted earnings of $1.26 per share in the fourth quarter and $4.24 per share for the year.

UPS will release fourth-quarter results next week.