ATLANTA, Jan. 31, 2012 – UPS (NYSE:UPS) today announced fourth
quarter 2011 adjusted diluted earnings per share of $1.28, a 21% improvement
over the prior-year period. Total revenue increased 6% to $14.2 billion and
adjusted operating profit climbed 17% to more than $2 billion.

Last Friday, the company announced a change in pension accounting to a
mark-to-market methodology. Adopted in the fourth quarter of 2011 and applied
retrospectively, this new method resulted in after-tax charges in 2011 and 2010
of $527 million and $75 million, respectively. Also, in the prior-year period, UPS
recorded a net after-tax gain of $32 million from the sale of certain non-core
business units in the Supply Chain and Freight segment. On a reported basis,
fourth quarter 2011 diluted earnings per share were $0.74, a decline of 28% from
the same quarter last year.

For the full year 2011, UPS achieved a new high in adjusted diluted
earnings per share at $4.35. On a reported basis, diluted earnings per share
were $3.84.

“UPS delivered record fourth quarter results in volume, revenue and
profitability,” said Scott Davis, UPS chairman and CEO. “In short, the quarter
was a testament to the power of UPS’s global model and the company’s ability to
operate efficiently in evolving markets.” Download the PDF to see the full report!