Fudging the Numbers

Discussion in 'UPS Discussions' started by 1980, Mar 2, 2008.

  1. 1980

    1980 Member

    Look who got caught fudging the numbers now. I would like to think that this was a honest mistake but can't help but think otherwise. A 65 million dollar error?? And no one knew. Where were the auditors? Counting their fee's.First time UPS ever had to restate their earnings EVER!!!!!! Accountability starts at the top, Lets see how this one shakes out and who they throw under the bus!
     
  2. scratch

    scratch Least Best Moderator Staff Member

    Fudging the numbers is an old time UPS tradition!!
     
  3. 1980

    1980 Member

    I would like to think that this was a honest mistake but can't help to think otherwise.A 65 million dollar error?? And no one knew? Where were the auditors? Counting their million dollar fees? Thank God they were smart enough to release this after market closed Friday so that it could get digested for two days.Take out the 6 cents and they missed the quarter pretty good.Lets see who gets thrown under the bus on this one.First time UPS had to restate earning EVER! Accountability starts at the top.
     
  4. pretzel_man

    pretzel_man Well-Known Member

    I guess people will think what they wish.

    There is no way that this was dishonesty. That's ridiculous.

    On the other hand, it certainly was incompetence. No doubt about that.

    That's the way life is.

    One must figure out the difference between integrity problems and competency issues. Sometimes they look the same.

    P-Man
     
  5. 1980

    1980 Member


    No Way? I sure hope so too, but being an ex Worldcom shareholder that lost plenty, I TRUST NO ONE!!!! MONEY IS THE ROOT OF ALL EVIL LOL
     
  6. PassYouBy

    PassYouBy Unknown Acrobat

    "Black said the error was not intentional. He said it was made by a lower-level accountant who had no role in reviewing the company's overall performance across all segments."
     
  7. local804

    local804 Well-Known Member

    hmmm then why was he?
    he comes the blame train choooo chooooo
     
  8. pretzel_man

    pretzel_man Well-Known Member

    Again, I'm sure it was not intentional.

    Also, almost all mistakes are done by low level people.

    I would expect higher level people to audit their work. Especially something as big as this.

    This surely is incompetance somewhere in the chain. Since Scott D. was the CFO before, he needs to look in his old house for the problem.

    P-Man
     
  9. Channahon

    Channahon New Member

    At least UPS came forward with the error. To me that says a lot about integrity, as this is the first time I have ever heard about an accounting error in UPS earnings. Makes you wonder how many other companies would have come forward with the same information.

    There may be repercussions for the outside accounting firm that is also responsible to ensure all reporting numbers are accurate.
    Remember Arthur Anderson and Enron? If Black says it was an honest error, than it was. Not as easy as balancing a checkbook, I'm sure.

    JMO
    Chan
     
  10. dannyboy

    dannyboy From the promised LAND

    Yeppers, spoken like a true high level people!!!!

    And that is why this company is having troubles. The people at the top view us as low level people that make almost all the mistakes. But now in his office, sorry, we dont make mistakes here.

    hehehe, how funny is that.

    Lead on Gomer Pyle!

    d
     
  11. ups79

    ups79 Active Member

    That "low level" comment :censored2: me off too. Could it be thats because all the "high level" people do nothing and expect us "low level" people to support them? "High level" must also mean parasites.
     
  12. raceanoncr

    raceanoncr Well-Known Member

    I just wonder if we "low level" employees are able to do the same thing when making a mistake...blame it on somebody else.

    Let's see, today I forgot to pick up a trailer at an account. Well, it IS on my schedule but NOBODY SPECIFICALLY TOLD ME TO PICK IT UP TODAY!!!!!

    Hmmmm...I missed picking up a drop box. But I've got so many, it's easy to miss JUST ONE!

    I delivered that 10:30 guarantee at 14:00. WELL THE CUSTOMER GOT IT DIDN'T THEY!! Geez! I corrected the mistake and blamed it on heavy volume! What's the problem?


    Again, where do I send the warning letter?
     
  13. pretzel_man

    pretzel_man Well-Known Member

    FYI....

    The word "low level" did not come from me originally. I quoted what was in a previous post.

    My point (that may have been unclear) was that just because the error came from a "low level" person, the "higher level" person was responsible.

    P-Man
     
  14. BrownSuit

    BrownSuit Active Member

    If the mistake was indeed as you said, a "fudging" of the numbers, I wonder why stockholders didn't vote with their feet today and sell the stock. Instead of the price of UPS stock going down today, it actually went up despite the news.

    From all that I've read on the issue, it sounds like an understandable mistake. You fail to move a line from one balance sheet to another on a company with more in profits than the GDP of some nations and it's going to add up to a lot.

    Before insinuating that there was something foul, your subject line does that, why not explore the issue or open it up for conversation. If you truly are a UPSer (which is somewhat doubtful) than as a shareholder in the company you have a right to hear a response from Corporate on the issue. Why not inquire there before ranting here?
     
  15. HEFFERNAN

    HEFFERNAN Huge Member

    As a package driver, anything that goes wrong on the road will always be my fault. That is how all the rules are set up in the company. Just like an earlier post this past week, driver has green light going 30 -40 mph, but still gets an "avoidable" accident for a car entering intersection. We are held to really strict standards when it comes to accidents and safety.
    We should expect the same from "high-level" corporate also

    We can laugh off a 65 million dollar error, but how many drivers have lost their jobs on a $600 accident? :dont_know:
     
  16. brownmonster

    brownmonster Man of Great Wisdom

    Supe-You misdelivered a pkg yesterday. Me-At least I didn't misplace 65 million dollars.
     
  17. over9five

    over9five Moderator Staff Member

    I think this should come down to "leading by example".

    Low level package car drivers get fired for far less.

    Some high level person should lose their job.
     
  18. Channahon

    Channahon New Member

    The error as reported by Bloomberg.com

    UPS Cuts 2007 Earnings 1.4%, Citing Accounting Error

    By Mary Jane Credeur
    Feb. 29 (Bloomberg) -- United Parcel Service Inc., the world's largest package-delivery company, reduced its 2007 adjusted earnings by 1.4 percent to $4.11 a share, from $4.17, citing an accounting error.

    A $65 million tax benefit related to UPS's withdrawal from the Central States Fund, a multiemployer pension plan that covers 42,000 Teamsters union members at the company, was incorrectly recorded in the fourth quarter, Atlanta-based UPS said today in a statement.

    UPS accidentally entered the tax benefit twice, spokesman Norman Black said in interview. UPS said it discovered the error during its internal review process before filing its annual report to the U.S. Securities and Exchange Commission.

    The company reaffirmed its 2008 outlook for per-share earnings of $4.30 to $4.50 and first-quarter earnings of 94 cents to 98 cents.

    UPS fell $1.51, or 2.1 percent, to $70.24 at 4 p.m. in New York Stock Exchange composite trading. The company disclosed the revised earnings after the close of regular U.S. trading
     
  19. satellitedriver

    satellitedriver Moderator Staff Member

    I know I am being picky, but the quote should be;
    " The love of money is the root of all evil."
    Never love something that can not love you back.
    It was an accounting error that was addressed openly, instead of being swept under the rug, as it was done at Worldcom and ENRON.
    My trust is very limited, also.
    This is why I diversify my portfolio.