Board Cites Earnings Outlook, Strong Cash Flow
The UPS (NYSE: UPS) Board of Directors today increased the regular quarterly dividend by 9.6 percent to $0.57 per share from $0.52 on all outstanding Class A and Class B shares. The dividend is payable March 7, 2012, to shareholders of record on Feb. 21, 2012.
"UPS turned in a great performance in 2011 despite a volatile global operating environment," said UPS Chairman and CEO Scott Davis. "Cash flow in 2012 is expected to be strong and clearly today's decision by the Board reflects that projection."
Last week, in releasing its 4th quarter earnings results, UPS said it expected to generate record diluted earnings per share in a range of $4.75 to $5.00 in 2012.
With the latest increase, UPS now has more than doubled its dividend just since 2004. UPS has paid either stock or cash dividends every year since 1955 and has more than tripled its dividend since it went public at the end of 1999.
Except for historical information contained herein, 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. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, our competitive environment, increased security requirements, strikes, work stoppages and slowdowns, changes in energy prices, governmental regulations and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.