UPS, FedEx poised to gain from Postal Service pain

Discussion in 'The Latest UPS Headlines' started by cheryl, Oct 21, 2011.

  1. cheryl

    cheryl I started this. Staff Member

    UPS, FedEx poised to gain from Postal Service pain - Chicage Tribune

    United Parcel Service Inc and FedEx Corp , which have long been undercut by the U.S. Postal Service's low prices for package delivery, could have much to gain as the agency faces a painful restructuring.

    Analysts said market leader UPS, given its size, stands to win the lion's share of the packages the Postal Service could lose, although any downsizing is widely seen bolstering the fortunes of FedEx as well.

    "I don't think the whole $20 billion is up for grabs, but it doesn't take but a small part of that to make a meaningful difference in terms of volume or profitability," said Jeffrey Kauffman, managing director at Sterne Agee in New York.