<div id="subtitle">UPS expected to post adjusted fourth-quarter profit on lower revenue</div><div><p>UPS Inc., the world's largest shipping carrier, reports fourth-quarter and full-year 2009 results on Tuesday. The following is a summary of key developments and analyst opinion related to the period.</p><p>OVERVIEW: UPS, based in Atlanta, is expected to post an adjusted profit on lower revenue for the October-December quarter.</p><p>The fourth quarter, which includes the peak holiday shipping period, is usually a very busy time for shippers like UPS.</p><p>The UPS and rival FedEx Corp. are viewed as economic bellwethers. They have seen signs of improving demand for shipping in recent months. But there is uncertainty about when the economic recovery will pick up speed.</p><p>On Jan. 8, UPS raised its profit forecast for the fourth-quarter that ended in December, citing improving operations and cost cuts.</p><p>The company expected to post earnings of 73 cents to 75 cents per share for the October-to-December quarter. UPS previously predicted earnings of 58 to 65 cents per share.</p><p>FedEx, meanwhile, reported in December that fiscal second-quarter earnings fell 30 percent from a year earlier. FedEx, based in Memphis, Tenn., said then that the economy has "reached a turning point," but a full recovery could still be a long way off.</p><p>UPS, also known as United Parcel Service, delivers packages and provides supply chain and freight services. It serves more than 200 countries and territories worldwide.</p><p>BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, expect UPS to post a fourth-quarter profit of 73 cents a share on revenue of $12.22 billion. Analysts' projections generally exclude one-time items. The company posted net profit of 25 cents a share on revenue of $12.7 billion in the fourth quarter of 2008. Excluding one-time items, UPS' quarterly profit was 83 cents a share in the 2008 fourth quarter.</p><p>ANALYST TAKE: Barclays Capital analyst Gary Chase said in a Jan. 19 research note that even after UPS' earnings pre-announcement, investors continue to under-appreciate UPS' earnings potential for 2010. "We remain encouraged by trends in inventory to sales ratios and what we believe they portend for express volumes, which, in our view, are a crucial earnings lever for UPS," he wrote.</p><p>WHAT'S AHEAD: UPS is cutting 1,800 management and administrative jobs, less than 1 percent of its global work force, as it repositions itself for a gradual economic recovery with improved technology and fewer employees. It said earlier this month that about 1,100 employees will be offered a voluntary separation package as part of the work-force reduction, meant to streamline the company's U.S. small package segment. Other cuts will come through attrition and layoffs. The U.S. small package segment represents roughly 60 percent of UPS' annual revenue. It handles shipments of up to 150 pounds by ground and air. UPS has 408,000 employees worldwide. About 340,000 of those workers are in the U.S.</p><p>STOCK PERFORMANCE: UPS shares rose 4.7 percent on a split-adjusted basis during the fourth quarter. The stock closed at $54.77 on Oct. 1 and ended the quarter Dec. 31 at $57.37.</p><p>___</p><p>On the Net:</p><p>UPS Inc.: http://www.ups.com</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68053392&bid=informcom" /></div><div id="copyright"><div>

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