UPS Calls Pension Plans 'Healthy'
The package-delivery company also announced in a conference call with investment analysts that its pension expenses were expected to rise by $135 million next year as the company cuts its discount rate assumptions to 6.5% and its return on investment assumptions to 9.2%, according to a Dow Jones report.
Chief financial officer Scott Davis told the analysts that the Atlanta-based company might also increase its dividend. Separately, UPS reported a 1.8% increase in third quarter net profit, Dow Jones said.
The auto industry has been particularly hard hit with pension shortfalls, but other companies have shared in the suffering as well , including the parent company of Kentucky Fried Chicken and 3M .