In this Jan. 30, 2012 photo, a UPS logo is displayed at the UPS store in the Lake Balboa area of Los Angeles. UPS said Tuesday, Jan. 31, 2012, its fourth-quarter net income slid because of an accounting charge, but its adjusted results topped Wall Street's expectations. (AP Photo/Damian Dovarganes)
In this Jan. 30, 2012 photo, a UPS logo is displayed at the UPS store in the Lake Balboa area of Los Angeles. UPS said Tuesday, Jan. 31, 2012, its fourth-quarter net income slid because of an accounting charge, but its adjusted results topped Wall Street's expectations. (AP Photo/Damian Dovarganes)
In this Jan. 30, 2012 photo, UPS store employee, Lin Fordham, measures an antique vitrine cabinet for specialized shipping at The UPS Store in the Lake Balboa area of Los Angeles. UPS said Tuesday, Jan. 31, 2012, its fourth-quarter net income slid because of an accounting charge, but its adjusted results topped Wall Street's expectations. (AP Photo/Damian Dovarganes)
This Jan. 30, 2012, photo, shows shipping labels at a UPS Store in the Lake Balboa area of Los Angeles. UPS said Tuesday, Jan. 31, 2012, its fourth-quarter net income slid because of an accounting charge, but its adjusted results topped Wall Street's expectations. (AP Photo/Damian Dovarganes)
NEW YORK (AP) ? The tide has turned in UPS' global business. For the better part of two years, earnings at the world's largest package delivery company were powered by a strong international performance, particularly in Asia. Now its results are being driven by an economic "uplift" here at home.
UPS said a stronger than expected U.S. economy and a surge in online holiday sales led operating profit higher in the fourth quarter of last year. While net income was lower due to an accounting charge, adjusted profit rose 21 percent and topped Wall Street's expectations.
UPS expects to see faster growth this year in the U.S. economy than in 2011. That will be in contrast to other parts of the world, where UPS predicts the pace of growth will slow.
The Atlanta company said results in the U.S. ? a 30 percent improvement in operating profit and 7 percent increase in revenue ? improved twice as fast as other segments in the last three months of the year. The U.S. segment is made up primarily of small packages moved between businesses and consumers. It separates the shipments of heavier goods like refrigerators into its supply chain and freight segment.
"While I wouldn't call it a robust economy right now, I do think the small package market is performing better than we would have thought four and five months ago," UPS Chairman and CEO Scott Davis said in a conference call.
Across all segments in the fourth quarter, United Parcel Service Inc. earned $725 million, or 74 cents per share, compared with $1.3 billion, or $1.02 per share a year earlier. Excluding a charge tied to how it accounts for pensions and retirement plans, UPS earned $1.28 per share in the latest quarter. Analysts expected an adjusted profit of $1.27 per share.
Revenue rose 6 percent to $14.17 billion. Its smallest unit, supply chain and freight, saw revenue improve by 2 percent.
For the full-year, the company earned $3.8 billion, or $3.84 per share, compared with $3.33 billion, or $3.33 per share, in 2010. The full year 2011 results also include the impact of the accounting change.
Excluding one-time charges, UPS made more money in 2011 than any year since before the recession. Adjusted full-year profit was $4.35 per share. It made $4.17 per share in 2007, excluding one-time items. The recession began in December of that year.
For 2012, the company expects to earn between $4.75 and $5, an increase of 9 to 15 percent over adjusted 2011 results. Analysts currently expect $4.80 per share.
Shares followed the broader markets lower in midday trading, losing $1.17 to $74.98.
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