UPS Profits - Where does the money go?

[Jackburton]

Scott Davis dumps it all into a massive pit and then rolls around in it - naked. Bonuses are then handed out to upper management via the amount they can wrench away from every nook 'n' cranny with their teeth.

Scrooge McDuck has been doing this since the 80's.

 

[OptimusPrime]

Unsure about the gold diving, but Scrooge McDuck has been around since 1947.

 

[moreluck]

Unsure about the gold diving, but Scrooge McDuck has been around since 1947.

Him and me both!!

 

[wayfair]

"where does the money go?"

not on turkeys for xmas....

 

[worldwide]

Hello all. I've seen lots of posts regarding the upcoming contract and the one phrase I see often is UPS makes tons of profit. I have two questions for you.

1. If you were to have your own company what % profit would you expect\hope for on each dollars worth of sales? ie you sell an item for $1.00 how much profit should you make on that dollar of sale?

2. What do you think UPS does with the profits it makes? (Please serious answers).

What is your definition of "tons of profit"? Is making $0.10 profit on every $1.00 of revenue a ton of profit?

What does UPS do with the profit? It's a public company so there are no secrets:
-pays income taxes
-pays a dividend to shareholders
-reinvests in the company for future growth

Net income ends up seeing UPS net $0.065 on each dollar of revenue. Is that "tons of profit"?

Historical profit margins are listed here: United Parcel Service Profit Margin Quarterly (UPS)

Average profit margin for the past 6 years is 5.54%. Margins are pretty slim in this business.

 

[UpstateNYUPSer(Ret)]

"where does the money go?"

not on turkeys for xmas....

One of our local supermarkets had turkeys on sale for $.49/lb. If you bought a 20 lb turkey it would cost you all of $10. PM me your address and I will send you the $10.

 

[brown_trousers]

What is your definition of "tons of profit"? Is making $0.10 profit on every $1.00 of revenue a ton of profit?

What does UPS do with the profit? It's a public company so there are no secrets:
-pays income taxes
-pays a dividend to shareholders
-reinvests in the company for future growth

Net income ends up seeing UPS net $0.065 on each dollar of revenue. Is that "tons of profit"?

Historical profit margins are listed here: United Parcel Service Profit Margin Quarterly (UPS)

Average profit margin for the past 6 years is 5.54%. Margins are pretty slim in this business.

I bet 5.54% is a pretty high profit margin in the trucking industry

 

[worldwide]

I bet 5.54% is a pretty high profit margin in the trucking industry

Not really.

FedEx 5 year average Pre-Tax Profit Margin is 5.3%.

Can't really compare an LTL company to UPS since UPSF is a relatively small piece of the overall revenue of UPS.

 

[Backlasher]

Well, I got some serious answers and others not so serious. Upstate was correct that UPS makes roughly 10 cents on the dollar. However my question was, how much would you want to make on each dollar of sale in your own company? If you look at other companies such as Apple, Microsoft and other Fortune 500 companies, the profit margin is much larger.

Also, the companies that "give it all back to employees" are not public for profit companies. As a person who goes out and starts a company, you do it probably since you ahve a passion for it. Most people start companies to make money first and foremost. As a few others wrote, once UPS records "profit", we pay the federal govt a hefty Corp tax (about 1/3). We also use the profits left over for dividends to shareowners, we also use it to buy back stock. However, a lot of money goes into buying new package cars, the expansion to Worldport, New computers, New Intl Hubs. We also use it to buy companies such as TNT (hopefully that goes thru). If UPS didn't make a profit, there would be no more package cars, no more trailers, no more planes or air hubs. We need the company to make a profit to be able to buy those items. My point is that it seems so many people look at it and says UPS made a lot of profit, that's not fair, we should make more. I believe you should earn based on what the market pays for that job. FDX pays far less, but they also get a work force that is not as good as ours, and also a work force that does not do as much. However, there overall costs are much lower compared to ours. They have grown faster then us each year for decades now (their overall growth). If this keeps us, their volume will = UPS volume and then we will really be at a disadvantage.

I still look at how the UAW allowed their members to make an extremely good pay rate. However, it was uncompetitive and eventually competitors beat them and the number of UAW employees is far reduced compared to the 70's. The more volume FDX gets, the more Teamster work that is lost to them.

I see were this is leading and couldn't dis agree more. It sounds as though this is an attack on our pay rate/ labor cost. We loss a good percentage to dividends and bonus. I can only speak for myself but I didn't ask for UPS to go public.

Speaking of payroll matching other companies in the same work force. Maybe they do get paid less (Fed-Ex,etc.) but their work production can't compare. They're volumn of pieces per car, Stops per rt. per mile,etc... not near our production. Our percentage of pay over their's is at least on par with percentage of production. You can't compare our payrate without comparing our production output.

As far as UPS needs to make a profit to invest in new Package cars, equipment, and expanding, I agree. 10% is fair. after all profit as % is based on volumn so even @ 10%, The profit is great.

10% of $100,000 = $10,000

10% of $100,000,000,000 = $10,000,000,000.

Can't base it on percentage cause in large volumn, even a small % is great.

If UPS had earnings in the $100,000 range then maybe the 10% profit isn't enough arguement would have a leg.

 

[Backlasher]

I have a good idea to gain a larger percentage in profit. Fix the trace on all routes, minimize mileage, etc..

We have add cuts and split routes with no sence of trace and set with great mileage between areas. We should be able to run fully in trace and have a clean day when you get the big picture of out tech. investments and system ops yet I see a lot of fails. Drivers crossing each others loops running add cuts that have commercial stops and pick ups put in jeopordy costing $$$ and taking a hit on profit which might I add is for the sak of #'s and not in any way is our drivers @ fault for this loss in profit, neither is it their hrly pay rates fault.

Dispatch smaller, tight loops, and set better commercial stops and pick-up schedules to work in trace. That's were the $ is lost. Not our production efficiency or pay rate.

 

[wayfair]

One of our local supermarkets had turkeys on sale for $.49/lb. If you bought a 20 lb turkey it would cost you all of $10. PM me your address and I will send you the $10.

you missed the point...

 

[brownmonster]

I have a good idea to gain a larger percentage in profit. Fix the trace on all routes, minimize mileage, etc..

We have add cuts and split routes with no sence of trace and set with great mileage between areas. We should be able to run fully in trace and have a clean day when you get the big picture of out tech. investments and system ops yet I see a lot of fails. Drivers crossing each others loops running add cuts that have commercial stops and pick ups put in jeopordy costing $$$ and taking a hit on profit which might I add is for the sak of #'s and not in any way is our drivers @ fault for this loss in profit, neither is it their hrly pay rates fault.

Dispatch smaller, tight loops, and set better commercial stops and pick-up schedules to work in trace. That's were the $ is lost. Not our production efficiency or pay rate.

Screw that. I make a lot of bonus money in wasted miles.

 

[wayfair]

you missed the point...

We used to get a xmas bonus, then were handed out turkeys( I'd donate mine) then we started getting vouchers for $15, and the last few years... nada
used to get cookouts too... for safety and what not. That's cool, I mean there is that company xmas party... oh wait, we don't have that either... haha


the days before xmas, do you know how much air and 2da I had??? UPS made bank...

 

[Catatonic]

We used to get a xmas bonus, then were handed out turkeys( I'd donate mine) then we started getting vouchers for $15, and the last few years... nada
used to get cookouts too... for safety and what not. That's cool, I mean there is that company xmas party... oh wait, we don't have that either... haha


the days before xmas, do you know how much air and 2da I had??? UPS made bank...

I think you missed the point.

 

[Re-Raise]

I can't decide who I hate more, the people who do nothing and collect a check from the government which comes from my taxes, or the rich who sit around and do nothing and collect their dividend checks which come from my work.

That is why I can't decide whether to support the Democrats or the Republicans.

 

[brownmonster]

I can't decide who I hate more, the people who do nothing and collect a check from the government which comes from my taxes, or the rich who sit around and do nothing and collect their dividend checks which come from my work.

That is why I can't decide whether to support the Democrats or the Republicans.

Buy a bunch of stock and then become dis-abled. Live the best of both worlds.

 

[worldwide]

...then were handed out turkeys( I'd donate mine) then we started getting vouchers for $15...

So I am assuming that you simply buy a turkey yourself every year and donatr it, right? After all, you heart was in the right place with donating an item that cost you nothing so now you dig into your wallet to purchase a turkey for others each Christmas, yes?

 

[island1fox]

I can't decide who I hate more, the people who do nothing and collect a check from the government which comes from my taxes, or the rich who sit around and do nothing and collect their dividend checks which come from my work.

That is why I can't decide whether to support the Democrats or the Republicans.

Re-Raise,

I am "all in" You can support or not support who you want to.

Not too hard to figure the vast majority of people that stay at home and collect dividends have worked LONG and Hard to get themselves in that position --as well as risking those funds everyday keeping people like you working.

Also are double taxed on their investments.

Surprise if all the UPS stock holders "cashed out" today --your poker game is OVAH !!!


People who are not disabled but are 'TAKERS' and live off OUR TAX money --not the government are low lives !!

Simple enough !!!

 

[island1fox]

We used to get a xmas bonus, then were handed out turkeys( I'd donate mine) then we started getting vouchers for $15, and the last few years... nada
used to get cookouts too... for safety and what not. That's cool, I mean there is that company xmas party... oh wait, we don't have that either... haha


the days before xmas, do you know how much air and 2da I had??? UPS made bank...

??? Bad Company to make a profit -no turkeys or parties ----but pays EXCELLENT SALARY and BENEFITS for your work ????

Wish they were unprofitable had parties and gave out Turkeys --go Belly up next contract --like Hostess and they we can cry about how MANAGEMENT caused the Bankruptcy ????

In todays Global economy -with all the competition and many companies going out of business --unemployment skyrocketing ---Turkeys and Parties are your problem ???? Talk about TURKEYS.

 

[Dracula]

Personally, I could care less about those damn turkeys. I gave mine away too. But to listen to these guys in management to blather on about how we should be so lucky to work for the generous Kings in the ties, well, I call uncle to that. There's nothing funnier to me, to listen to a driver supervisor complain to me about my numbers, saying I'm costing the company this much or that much, while they move a bean under three shells in their heated/air-conditioned office when the real work is being done out in the elements. Yeah, while I'm out on the streets, trying to figure out how to clean up another daily management friend-UP, and service the customers at the same time, pinhead in the too tight tie, is telling me not to turn left, not to back more than -- times a day and suck up another three hours of work in a day with no time left.

Yeah, we understand all about profits. It happens on our backs, not yours. So while you get twice your monthly salary for a X-Mas bonus, and we get bupkis, don't question why some union members bitch about a lousy $30 turkey that was buried years ago.