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