(Corrects last paragraph to show effect of pension- accounting change.)
Jan. 31 (Bloomberg) -- United Parcel Service Inc., the world’s largest package-delivery company, forecast a 2012 profit that exceeded analysts’ estimates as shipping demand gains.
Annual earnings, excluding some items, will be in the range of $4.75 to $5 a share, the Atlanta-based company said today in a statement. That topped the average estimate of $4.78 in a Bloomberg survey of 25 analysts.
UPS is raising prices and expanding its hub in Cologne, Germany, as it benefits from emerging-market demand. FedEx Corp., operator of the world’s biggest cargo airline, last month reported fiscal second-quarter profit that beat estimates as U.S. consumers increased holiday orders from online retailers.
Fourth-quarter profit excluding the effect of some pension expenses rose 17 percent to $1.25 billion, or $1.28 a share, from $1.07 billion, or $1.06, a year earlier. That compared with the average analyst estimate of $1.26 a share.
The stock rose in early U.S. trading, climbing 0.8 to $76.76 at 8 a.m. in New York.
UPS said last week that because of a change in pension accounting, fourth-quarter adjusted earnings would be increased by 3 cents a share. The company said it would take a pretax $827 million charge in 2011 as it accounted for pension gains and losses in the year incurred rather than amortizing them.
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