United Parcel Service reported higher quarterly profit after adjusting for a new pension accounting method, and forecast higher 2012 earnings.

The world's largest package delivery company on Tuesday said fourth-quarter net income fell to $725 million, or 74 cents a share, from $1.025 billion, or $1.02 a share, a year ago.

After adjusting for a pension fund accounting change started in the fourth quarter, profit rose to $1.28 a share from $1.06.

UPS said the new accounting method resulted in after-tax charges in 2011 and 2010 of $527 million and $75 million, respectively.

Fourth-quarter revenue rose 6 percent to $14.2 billion, roughly in line with the $14.4 billion expected by analysts, according to Thomson Reuters I/B/E/S.

(Reporting By Lynn Adler; editing by John Wallace)