The market generally reacts to negative news too drastically and in many cases value can be found before the dust settles. UPS has been dinged up in the past few months by a combination of mis-estimating holiday traffic and increased costs due to the harsh weather over the first quarter. These events led to United Parcel Service (UPS) missing analysts’ estimates which has resulted in a buying opportunity.
The United Parcel Service Co. or UPS has filed a motion in Jefferson County Circuit Court requesting a partial summary judgment in the civil lawsuit over the plane crash in Birmingham last year.
The motion, which was filed Tuesday, asks the judge to dismiss any damage claims associated with mental anguish or alleged physical symptoms requested by the plaintiffs — Barbara Jean and Cornelius Benson — who were living near the Birmingham airport when a UPS cargo plane crashed on Aug. 14, 2013.
United Parcel Service Inc. (UPS) will record a pretax cost of about $1.05 billion this quarter for changes to union workers’ health benefits under a five-year contract approved by the International Brotherhood of Teamsters.
The world’s largest package-delivery company will make a pretax cash payment of $2.27 billion to multiemployer funds that will administer active and post-retirement medical benefits for Teamster-represented employees, according to a filing today. The contract covers 253,000 workers.
Employees will see annual raises averaging 2.4 percent, and UPS is setting a $10-an-hour wage for new part-time workers. UPS last changed its starting wage in the 1990s.
United Parcel Service Inc (UPS.N), the world’s biggest courier company, reported a 12 percent fall in quarterly profit due to increased overtime and transport costs related to a colder-than-usual winter in the United States.
The company also warned that full-year earnings were likely to come in at the lower end of its earlier forecast, citing the “challenging” start to 2014.
UPS joins a growing list of companies, including closest rival FedEx Corp (FDX.N), that have blamed the harsh winter for weak results and a subdued outlook for 2014.
The Teamsters’ Local 89 Union at United Parcel Services’ (NYSE: UPS ) famed Worldport Hub has once again voted down the proposed Louisville air supplement in a vote of 2804 against and 185 for the proposal. This marks the second time that the contract has been voted down, and it highlights the ongoing strain between UPS and one of the company’s most important local unions.