United Parcel Service Inc (UPS) Class B UPS
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/25/2013

Operator: Good morning. My name is Stephen, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the UPS Investor Relations First Quarter 2013 Earnings Conference Call. All lines have been placed on mute to prevent any background noise, and after the speakers' remarks, there will be a question-and-answer period. Please note we will take only one question from each participant to accommodate more analysts during the call. Thank you for your cooperation.

It is now my pleasure to turn the floor over to your host, Mr. Andy Dolny, UPS Treasurer and Investor Relations Officer. Sir, the floor is yours.

Andy Dolny - IR: Good morning, and welcome to our first quarter earnings call. Joining me today are Scott Davis, our CEO; and Kurt Kuehn, our CFO; along with Chief Operating Officer, David Abney; International President, Dan Brutto; President of U.S. Operations, Myron Gray; and UPS Chief Sales and Marketing Officer, Alan Gershenhorn.

Before we begin, I want to review the Safe Harbor language. Some of the comments we'll make today are forward-looking statements that address our expectations for the future performance or results of operations of the Company. These anticipated results are subject to risks and uncertainties which are described in detail in our 2012 Form 10-K report. This report is available on the UPS Investor Relations website and from the Securities and Exchange Commission.

During the quarter, we reported a $36 million after tax net gain related to our attempted acquisition of TNT. This is made up of two components, a $213 million after tax currency gain from the liquidation of a foreign subsidiary and a $177 million after tax charge for the termination fee and other transaction-related costs. These adjustments resulted in an after tax benefit of $0.04 per share. Ignoring the impact of this gain, diluted earnings per share for the first quarter were $1.04.

In our remarks today, we will refer to UPS first quarter 2013 results excluding these one-time items. We believe this is the most accurate picture of the Company's performance. Reconciliations to comparable GAAP measures and free cash flow, which is a non-GAAP financial measure, are included in the schedules that accompany our earnings new release. These schedules, along with the webcast of today's call, are available on the UPS investor relations website.

Finally, as a reminder, our goal is to allow as many as possible to participate on today's call. We weren't able to do that last quarter. So, please ask only one question, and then get back in the queue. For those of you, who like five-part questions, don’t be surprised when we select which part to answer. Thanks for your cooperation.

Now, let me turn it over to Scott.

D. Scott Davis - Chairman and CEO: Thanks, Andy, and good morning. We enter 2013 in an environment of global uncertainty, yet confident in our strategies and ability to execute. UPS delivered another quarter of growth, reflecting the management discipline and earnings consistency you have come to expect.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.