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Shipping carrier UPS revises 4Q earnings, shows it missed expectations

Shipping carrier UPS revises 4Q earnings, shows it missed expectations

UPS Inc., the world's largest shipping carrier, said Friday a bookkeeping error caused it to inflate its reported earnings for the fiscal 2007 fourth-quarter and full-year by $65 million (euro42.86 million).
The error means the company missed Wall Street expectations instead of meeting them, as reported previously.
The Atlanta-based company said it was revising its results, which it first reported on Jan. 30, to fix the discrepancy.
The error involved a state income tax benefit of $65 million (euro42.86 million) that was recorded twice in the fourth quarter instead of once, company spokesman Norman Black said.
The revision affects only earnings and earnings per share for the fourth quarter and full-year 2007, UPS said. The revision does not affect the company's reported revenue figures for the relevant periods, nor does it affect the future guidance the company gave.
As a result of the revision, UPS said that for the three months ended Dec. 31, it lost $2.64 billion (euro1.74 billion), or $2.52 (euro1.66) a share. Previously, it said it lost $2.58 billion (euro1.7 billion), or $2.46 (euro1.62) a share, in the quarter.
Excluding one-time items, UPS said it earned $1.13 billion (euro0.75 billion), or $1.07 (euro.71) a share, in the fourth quarter. Previously, it reported that it had earned $1.20 billion (euro0.79 billion), or $1.13 (euro.75) a share, in the quarter on an adjusted basis.
Analysts surveyed by Thomson Financial had been expecting adjusted earnings of $1.13 (euro.75) for the quarter, which means that UPS fell short of forecasts. Before, it had matched them.
For all of 2007, UPS said it earned $382 million (euro251.86 million), or 36 cents a share. Previously, it had reported that it earned $447 million (euro294.72 million), or 42 cents a share.
Black said the error was not intentional. He said it was made by a lower-level accountant who had no role in reviewing the company's overall performance across all segments.


Updated : 2021-06-14 08:39 GMT+08:00