UPS Delivers on Profit
United Parcel Service of America Inc. reported a 29% increase in third-quarter profit and disclosed that a shareholder has filed a lawsuit seeking to block its planned initial public offering.
The world’s largest package-delivery company said profit rose to $577 million, or $1.03 a share, as it shipped more packages worldwide and earned more per item. Revenue increased 9% to $6.72 billion.
Closely held UPS plans to go public in early November and hopes to raise an estimated $3 billion. Its shareholders are scheduled to vote Oct. 25 on the plan. The Atlanta-based company’s 547 million shares are owned mostly by employees or their survivors.
UPS said shareholder Linda Starkman filed a complaint in a Delaware court against the company and its board on Sept. 28. The suit claims that the offering violates UPS’ certificate of incorporation, according to documents filed with securities regulators.
On Monday, the Delaware court will hear arguments on a motion for a preliminary injunction to halt the proposed transaction, according to UPS’ quarterly earnings statement filed with the Securities and Exchange Commission on Friday.
At a Glance
Other earnings, excluding one-time gains or charges unless noted:
* Archer-Daniels-Midland Co., one of the world’s largest grain and oil-seed processors, said fiscal first-quarter profit tumbled 69% to $36.4 million, or 6 cents a share, amid weak export demand and slumping prices for soy products. The results fell short of expectations of 12 cents a share, based on an average from seven analysts polled by First Call.
* Caterpillar Inc. said third-quarter profit fell 35% to $219 million, or 61 cents a share, as reduced demand for its construction equipment in the U.S. and Latin America more than offset rising Asian sales. The results beat analyst estimates by a penny. Revenue slipped 9% to $4.72 billion. Caterpillar, which has cut jobs and idled plants temporarily to slash costs, also said it expects per-share profit this year of $3.
* PG&E; Corp. said its earnings fell 13% to $183 million, or 50 cents a share, in the third quarter, because California regulators reduced the amount the utility can earn and because of a fire that cut its power production. The utility’s results missed estimates of 53 cents. Revenue rose 20% to $6.38 billion from $5.31 billion, with most of the gain coming from increased sales of natural gas and electricity to utilities and large industrial customers outside California.
*
Bloomberg News and Reuters were used in compiling this report.
