UPS made profits of $2.05 billion excluding a big one-time pension accounting charge.
The company’s fourth quarter profits looked like a loss thanks to an accounting gimmick. UPS took a massive one-time $3 billion “non-cash charge“ on company pension and benefit plans. This charge did not affect the company’s cash flow or benefits paid to participants.
After the pension charge, the company posted an official fourth-quarter net loss of $1.75 billion.
It’s contract time. And UPS Teamsters can expect management to use the Fourth Quarter figures to talk up the bad economy.
Management and Teamsters know the truth: UPS continues to gain ground and make profits even in a tough economy. Just look at the numbers the company can’t manipulate through accounting gimmicks.
UPS’s fourth quarter revenue rose to $14.57 billion—up $400 million compared to last year.
Pension charge pushes UPS 4Q results into the red
UPS books loss after big pension charge, sees 2013 profit up