UNITED PARCEL SERVICE INC

55 GLENLAKE PARKWAY NE ATLANTA, GA, 30328 404−828−6000 www.ups.com

( UPS )

8−K
Current report filing Filed on 10/21/2010 Filed Period 10/21/2010

14a−12) Pre−commencement communications pursuant to Rule 14d−2(b) under the Exchange Act (17 CFR 240. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 001−15451 (Commission File Number) 58−2480149 (IRS Employer Identification No.E.2. Georgia 30328 (Address of principal executive offices) (Zip Code) Registrant’s telephone number. 2010 United Parcel Service.13e−4(c)) .14d−2(b)) Pre−commencement communications pursuant to Rule 13e−4(c) under the Exchange Act (17 CFR 240.) 55 Glenlake Parkway. including area code (404) 828−6000 Not Applicable (Former name or former address.UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington. 20549 FORM 8−K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 21. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230. N. Inc.. D. Atlanta. if changed since last report) Check the appropriate box below if the Form 8−K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.C.425) Soliciting material pursuant to Rule 14a−12 under the Exchange Act (17 CFR 240.

1. A copy of the press release is attached hereto as Exhibit 99. Item 9. (the “Company”) issued a press release containing information about the Company’s results of operations for the third quarter ended September 30. Inc. (c) Exhibits 99.01 — Financial Statements and Exhibits.1 Press release dated October 21. 2010.Item 2. 2010 2 . On October 21. United Parcel Service. 2010.02 — Results of Operations and Financial Condition.

Kuehn Senior Vice President and Chief Financial Officer 3 .Signatures Pursuant to the requirements of the Securities Exchange Act of 1934. INC. the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 21. Kuehn Kurt P. 2010 By: /s/ Kurt P. UNITED PARCEL SERVICE.

3% 14. Consolidated Results Revenue Operating profit Operating margin Average volume per day Diluted earnings per share − more − 3Q 2010 $ 12.4% 0. a 51%−to−53% increase over last year. 21.55 .51 B 12. Public Relations 404−828−7593 Andy Dolny.62 B 13.” Based on the company’s performance. On a reported basis. Investor Relations 404−828−8901 UPS 3Q EARNINGS CLIMB 69% ON REVENUE GROWTH OF 9% Strong Growth Across all Segments.5 billion in adjusted operating profit.99 Adjusted 3Q 2010 $ $ 1.19 B $ 1. a 62% increase.93 3Q 2009 $ 11.48 to $3. a 69% improvement over the prior−year period.93 for the third quarter of 2010.3% 15.” said Scott Davis. During the quarter.Exhibit 99. an 80% increase over the $0.54 per share. diluted earnings per share were $0. UPS recorded an after−tax benefit of $61 million on the sale of real estate. UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.3%.3 M $ 0.15 B $ 929 M 8. superior service and an unmatched global portfolio. This is a true testament to what can be accomplished when you have excellent people. Global revenue grew 9.1 Contacts: Norman Black.99. 2010 — UPS (NYSE:UPS) today announced adjusted diluted earnings per share of $0. UPS chairman and CEO. generating $1. UPS Raises Annual Guidance ATLANTA.0 M $ 0. “UPS once again exceeded expectations due to superior execution across all business units and our ability to provide solutions that create value for our customers.55 in the same period last year. “We continue to deliver significant earnings growth and margin expansion in the current economic environment. Oct.

S. International Package Revenue Operating profit Operating margin Average volume per day − more − 3Q 2010 $ 2. Cash Position For the nine months ending Sept. During the quarter. UPS generated $3.73 M 12. On a reported basis.42 B $ 313 M 12. During the quarter.68 B $ 419 M 15.24 M 3Q 2009 $ 2. Reported operating profit was $1. Adjusted U. Average daily package volume expanded 3.3% on average daily volume growth of 5%.9% 1. UPS introduced Returns ® Flexible Access. 2010. Domestic Package 3Q 2010 3Q 2010 3Q 2009 Revenue $ 7. improved yields and the benefits of more streamlined operations.6% during the quarter due to growth in Ground and Next Day Air ®. expanding the options for consumers to return goods to retailers.3%.7% 2. operating margin was 13. 30. The margin expansion of 500 basis points was driven by volume growth.02 billion.87 B Operating profit $ 1. Adjusted operating margin expanded 410 basis points to 12. The combination of UPS and postal access channels creates the most extensive returns network available to consumers today. 30. UPS delivered 958 million packages in the quarter.0% 12.5% Average volume per day 12.4%.5 billion in free cash flow. Repurchased 9.29 M Adjusted operating profit increased 77% to $911 million on revenue growth of 6%. The company also: • Paid dividends totaling $1.5% 7.2−2−2 For the three months ended Sept. Revenue per piece improved 4%.02 B 911 M $ 514 M Operating margin 14.97 M . • • Invested $1 billion in capital expenditures. UPS unveiled a new communications platform with the theme “We Love Logistics.3 million shares at a cost of $589 million.36 billion. a 98% increase. revenue increased 9.29 B $ 6.” This campaign is UPS’s first coordinated global advertising effort and is designed to demonstrate the power of logistics to businesses around the world. primarily through increases in base pricing and higher fuel surcharges.

Export average daily volume increased 13%. “Based on the projections of retailers and economists. Outlook “UPS generated superior performance across all segments.” said Kurt Kuehn. up more than 30%. outpacing the market.0% 5. Non−U. During the quarter. we expect modest growth during the holiday peak season. due to growth in all regions with Asia leading the way. “This is a direct result of the successful execution of our long−range strategy. UPS launched Preferred LCL Ocean Freight. ” − more − . increased tonnage and improved operational efficiencies in Forwarding and Logistics.86 B Operating profit $ 177 M $ 102 M Operating margin 8. Supply Chain and Freight 3Q 2010 3Q 2009 Revenue $ 2.” Kuehn added.7%. Operating profit jumped 74% to $177 million. UPS Freight revenue grew 14% due to improved yield and increases in gross weight hauled.23 B $ 1. a new service that provides up to 20% faster door−to−door delivery than other less−than−container−load (LCL) services on the market. powered by Forwarding and Logistics.S. Operating margin improved 280 basis points to 15. The operating margin for the segment increased 250 basis points to 8. As part of an on−going strategy to grow its business in emerging markets.5% Revenue grew 19% with the Forwarding business unit leading the way. “I am confident in UPS’s ability to generate strong cash flow and continued earnings growth while investing in growth opportunities around the world.0%. UPS entered into an expanded alliance with its local domestic courier in Indonesia. domestic volume increased 14% with strength across Europe. This margin expansion was primarily driven by improved revenue management. We are raising our full−year 2010 guidance with adjusted earnings per share expected to grow more than 50% over last year.3−3−3 The operating profit for the segment increased 34% to $419 million on an 11% increase in revenue. UPS’s chief financial officer. Canada and Mexico. This agreement extends the footprint for pick−up and delivery of international express packages throughout the country.

changes in aviation and motor fuel prices. That call is open to listeners through a live Webcast.com/ups — and encourages those interested in the company to check there frequently. we use these adjusted financial measures to determine awards for our management personnel under our incentive compensation plans. we recorded a $181 million pre−tax impairment charge related to our McDonnell−Douglas DC−8−71 and DC−8−73 aircraft fleets.m. the most directly comparable GAAP financial measures. Certain factors may cause actual results to differ materially from those contained in the forward−looking statements. our competitive environment.ups. as applicable. In the second quarter of 2009. 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. it may not be possible to compare these financial measures with other companies’ non−GAAP financial measures having the same or similar names. governmental regulations. Except for historical information contained herein. and provide a better baseline for analyzing trends in our underlying businesses. we recorded a $77 million pre−tax charge for the remeasurement of certain obligations denominated in foreign currencies. We also incurred a $38 million pre−tax loss on the sale of a specialized transportation business in Germany in our Supply Chain & Freight segment. The underlying matters that produced these charges and gain were unique. UPS serves more than 220 countries and territories worldwide. visit pressroom.com/RSS.shareholder. prospects and future results. operating margin. 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.investors.ups. To access the call. involve certain risks and uncertainties. including. and other risks discussed in the company’s Form 10−K and other filings with the Securities and Exchange Commission. 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. resulting from a change in the filing status of a German subsidiary. pre−tax income. . cyclical and seasonal fluctuations in our operating results. Domestic Package operations related to the reorganization of our domestic management structure. go to www. net income and earnings per share excluding the impact of these items as we believe these adjusted measures better enable shareowners to focus on period−over−period operating performance. pre−tax income. The equivalent measures determined in accordance with GAAP are also referred to as “reported” or “unadjusted”. including economic and other conditions in the markets in which we operate. EDITOR’S NOTE: UPS Chairman and CEO Scott Davis and CFO Kurt Kuehn will discuss third quarter results with investors and analysts during a conference call at 8:30 a.com. The company can be found on the Web at UPS. in which hedge accounting was not able to be applied. EDT today. operating margin. “as adjusted” operating profit. To get UPS news direct. net income and earnings per share.ups. we recorded a $98 million pre−tax restructuring charge in our U. work stoppages and slowdowns. belief or current expectations of UPS and its management regarding the company’s strategic directions. offering a broad range of solutions including the transportation of packages and freight. including statements regarding the intent. We presented third quarter and year−to−date 2010 and 2009 operating profit. Additionally. which discussions are incorporated herein by reference. We supplement the reporting of our financial information determined under generally accepted accounting principles (“GAAP”) with certain non−GAAP financial measures. In the first quarter of 2009. net income and earnings per share. strikes. and the deployment of advanced technology to more efficiently manage the world of business.4−4−4 UPS (NYSE:UPS) is a global leader in logistics. In the third quarter of 2010. In the first quarter of 2010. These adjusted financial measures should not be considered in isolation or as a substitute for GAAP operating profit.com and its corporate blog can be found at blog. we recorded a $76 million charge to income tax expense. Because non−GAAP financial measures are not standardized. Headquartered in Atlanta. and we do not believe they are reflective of the types of items that will affect future results. Such forward−looking statements. Furthermore. we recorded a $109 million pre−tax gain on the sale of real estate. 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. when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures. These non−GAAP financial measures reflect an additional way of viewing aspects of our operations that.” UPS routinely posts investor announcements on its web site — investor.S. the facilitation of international trade.com and click on “Earnings Webcast. provide a more complete understanding of our business. operating margin.

55 0.S.5% 19. Domestic Package International Package Supply Chain & Freight Total operating profit Other income (expense): Investment income Interest expense Total other income (expense) Income before income taxes Income tax expense Net income Net income as a percentage of revenue Per share amounts Basic earnings per share Diluted earnings per share Weighted−average shares outstanding Basic Diluted As adjusted income data: Operating profit: U.93 $ $ $ $ 842 549 0. 1 (2) Certain prior year amounts have been reclassified to conform to the current year presentation.576 1.883 10.44 (3) — 81. Third quarter 2010 net income and earnings per share amounts exclude the after−tax effect of the real estate sale discussed in (1).4% 33. 2010 2009 (amounts in millions. Domestic Package operating profit and consolidated income before income taxes exclude a $109 million gain on the sale of real estate.39 0.38 Third quarter 2010 U.411 4.0% 150.S.9% 69.863 11.00 0. which totaled $61 million.9% 73.4% 9.039 70 282 352 506 106 75 687 9 2 11 698 256 6.616 15 (91) (76) 1.9% 73.020 419 177 1.291 2. except per share data) Statement of Income Data: Revenue: U.55 $ $ $ $ 589 381 0.55 0.676 2.224 514 313 102 929 6 (93) (87) 842 293 $ 549 4.0% $ 911 419 177 1.422 1.507 $ 514 313 102 929 $ 397 106 75 578 77.45 0.S.55 997 1.8% 80.1% 7.0% −2.5% $ 442 $ $ 0.94 $ 0. Inc.5% 74.3% 0.1% $ 1.S.6% 82.United Parcel Service. Domestic Package (1) International Package Supply Chain & Freight Total operating profit Income before income taxes (1) Net income (2) Basic earnings per share (2) Diluted earnings per share (2) (1) $ $ $ Change $ % $ 7. . Domestic Package International Package Supply Chain & Freight Total revenue Operating expenses: Compensation and benefits Other Total operating expenses Operating profit: U.192 6.2% 10.5% 62.4% 80.9% 87.0% 69.2% 70.3% 3.153 6.4% 70.3% 1.225 12.004 $ 6.165 10.0% −0.99 994 1.2% 33.4% 98.341 3.868 2.1% 1.540 549 991 8.431 $ 930 $ 0.004 $ 423 254 362 1. Selected Financial Data – Third Quarter (unaudited) Three Months Ended September 30.9% $ $ 0.2% −12.

95 6.6% 13.50 17.9% 14.8% 4.730 1.225 $ 12.6% 14.536 581 108 2.7% (0.207 767 1.975 132 2.9% 3.S.90 $ 1.693 12.039 31 (1) % 8.856 6.422 1.97 $ 9. 2010 $ Revenue (in millions): U.8% 19.1% −5.287 12.22) $ 0.466 696 5.0% 12.287 1.969 1.0% 6.376 863 2.70 7. Change $/# $ 118 32 273 423 33 205 16 254 286 72 4 362 $ 1.3% 3.6% 6.93 7.4% 0.37) 0.2% 3.153 927 65 1.8% 10.129 7.49 8.60 6.5% 3.S.46 35. Domestic Package International Package: Domestic Export Total International Package Consolidated Average Revenue Per Piece: U.27 0.S.3% $ 1.United Parcel Service.0% 3.2% 4. Domestic Package: Next Day Air Deferred Ground Total U.250 509 104 1.4% 5.26 (0.2% 0. Selected Operating Data – Third Quarter (unaudited) Three Months Ended September 30.40 12.77 0.7% −1.5% 22.676 1.35 7.23 0. Domestic Package: Next Day Air Deferred Ground Total U.261 37 — 406 443 169 96 265 708 3.S.37 .239 14.863 $ 11.291 569 1.75 $ 10.76 17.770 116 2.26 8.348 664 4.0% $ 19.S.83 35. Inc.27 2 $ 18.974 14.13 11.2% 6.144 856 10.192 958 64 $ 1.5% 13.S. Domestic Package International Package: Domestic Export Cargo Total International Package Supply Chain & Freight: Forwarding and Logistics Freight Other Total Supply Chain & Freight Consolidated Consolidated volume (in millions) Operating weekdays Average Daily Package Volume (in thousands): U.2% 11. Domestic Package: Next Day Air Deferred Ground Total U.4% 9.8% 5.868 536 1.1% 3.181 856 10. Domestic Package International Package: Domestic Export Total International Package Consolidated Certain prior year amounts have been reclassified to conform to the current year presentation.

367 363 4. 2009 interest expense and consolidated income before income taxes exclude a $77 million charge for the (2) (3) . 2010 2009 (amounts in millions.S.4% −0.820 $ 2. Domestic Package operating profit and consolidated income before income taxes exclude a $98 million restructuring charge related to the reorganization of our domestic management structure.376 36.662 8.378 1. (2). engines.424 $ 2.599 32.483 $ 2.606 6.1% 51.124 19.004 $ 1.4% 59. Domestic Package (1) International Package Supply Chain and Freight (2) Total operating profit Income before income taxes (1).793 1. Domestic Package International Package Supply Chain & Freight Total revenue Operating expenses: Compensation and benefits Other Total operating expenses Operating profit: U.0% 69.8% −0.S.8% 5. Domestic Package International Package Supply Chain & Freight Total operating profit Other income (expense): Investment income (loss) Interest expense Total other income (expense) Income before income taxes Income taxes Net income Net income as a percentage of revenue Per share amounts Basic earnings per share Diluted earnings per share Weighted average shares outstanding Basic Diluted As adjusted income data: Operating profit: U.364 49.375 30.086 6.224 1.6% 51.8% 80.178 970 3.94 $ 0.686 956 467 95 1.S.723 $ 2.5% 59.6% 50.060 (7) (260) (267) 3. and parts.9% 9.003 $ 20. 2009 U. (3) Net income (4) Basic earnings per share (4) Diluted earnings per share (4) (1) $ $ Change $ % $ 21.6% 2.183 788 $ 1.908 5.542 (3) (356) (359) 2.395 4.003 11.3% 60.8% $ $ 0.6% 69.319 1. except per share data) Statement of Income Data: Revenue: U.40 1.55 $ 764 467 133 1.7% 133. Selected Financial Data – Year to Date (unaudited) Nine Months Ended September 30.064 2.48 $ 1.1% 17.39 998 1.6% 73.379 $ 924 $ 0.610 636 $ 974 5.087 $ 3.United Parcel Service.3% 60.1% 56. Domestic Package operating profit and consolidated income before income taxes exclude a $181 million impairment charge on our McDonnell−Douglas DC−8−71 and DC−8−73 airframes.4% 10. as well as a $109 million gain on the sale of real estate.374 900 268 2.441 $ 1.518 (4) 96 92 1. due to an acceleration of the planned retirement of these aircraft.056 1.50 $ 2.S. Inc.7% 2.36 994 1.465 12. 2010 Supply Chain & Freight operating profit and consolidated income before income taxes exclude a $38 million loss on the sale of a specialized transportation business in Germany.S.555 900 268 2.38 2.367 401 4.1% $ 2.369 6.98 0.920 19.559 $ 1.7% 69.0% −25.56 $ 1.3% −27.9% 35.0% $ 1.2% $ $ 1.9% 49.204 462 1.330 1.1% 17.406 32.97 (4) (1) 70.93 2010 U.

(4) 2010 net income and earnings per share amounts exclude the after−tax impact of the U.remeasurement of certain obligations denominated in foreign currencies. 3 Certain prior year amounts have been reclassified to conform to the current year presentation. which totaled $164 million. . which combined to decrease net income by $38 million. in which hedge accounting was not able to be applied. resulting from a change in the tax filing status of a German subsidiary. 2010 net income and earnings per share exclude a $76 million charge to income tax expense. Domestic Package restructuring charge and real estate gain described in (1) and the business sale described in (2). Additionally. 2009 net income and earnings per share amounts exclude the after−tax effect of the impairment and currency remeasurement charges discussed in (1) and (3).S.

2% $ 4.169 866 10.7% 0.7% 20.691 1. 2010 2009 Revenue (in millions): U.8% $ 19.6% 3.3% 5.92 7.662 1.358 (2) (12) 232 218 231 91 322 540 −0.2% 4.470 306 5.6% (0.359 848 2.424 12.United Parcel Service. Domestic Package: Next Day Air Deferred Ground Total U.7% 3.S.846 191 $ 4.S.1% 3.67 0.009 14.9% 17.32 0.87 $ 1.31 12.S.60 36.7% 27.0% 16.714 5.9% 4.2% 1.263 21.757 192 1.128 757 1.207 14. Domestic Package: Next Day Air Deferred Ground Total U.178 795 158 17 970 $ 3.473 1.5% 12.99 18.94 6.9% 9.124 2.S. Inc.70 0.27 $ 9.133 297 6.7% 5.50 8.1% 4.82 35.628 323 6.32 18. Change $/# $ 267 79 710 1.62 7.S.908 3.376 $ 36.086 4.920 2. Selected Operating Data – Year to Date (unaudited) Nine Months Ended September 30. Domestic Package International Package: Domestic Export Cargo Total International Package Supply Chain & Freight: Forwarding and Logistics Freight Other Total Supply Chain & Freight Consolidated Consolidated volume (in millions) Operating weekdays Average Daily Package Volume (in thousands): U.1% 16.9% 3.406 $ 32.22) 1.45 .088 15.27 8. Domestic Package: Next Day Air Deferred Ground Total U.6% 17.S.044 2.9% 5.425 1.9% 10.0% −3.630 1.0% 17.606 1.4% 2.885 14. Domestic Package International Package: Domestic Export Total International Package Consolidated Average Revenue Per Piece: U.992 380 8.34 7.656 12.28 $ 10.2% 4. Domestic Package International Package: Domestic Export Total International Package Consolidated Certain prior year amounts have been reclassified to conform to the current year presentation.01 $ 0.2% −1.32 4 $ 17.60 6.204 89 (1) % 6.056 236 859 83 1.553 20.99 11.898 1.1% 21.23 0.171 878 10.478 5.311 2.

United Parcel Service. Certain prior year amounts have been reclassified to conform to the current year presentation. Reconciliation of Free Cash Flow (unaudited) Preliminary Year−to−Date September 30. 2010 $ 3. Inc. 5 .011) 294 76 179 $ 3.925 (1.463 (amounts in millions) Net cash from operations Capital expenditures Proceeds from disposals of PP&E Net change in finance receivables Other investing activities Free cash flow Amounts are subject to reclassification.

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