Will UPS Earnings Soar Past Those of FedEx?

Discussion in 'The Latest UPS Headlines' started by cheryl, Oct 24, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    Will UPS Earnings Soar Past Those of FedEx? - Motley Fool

    United Parcel Service will release its quarterly report on Friday, and investors have been pleased with the delivery service stock's ascent to all-time record high levels. With the economy continuing to show signs of recovery, UPS earnings should grow this quarter. But the bigger question is whether the shipping giant can continue to hold rival FedEx in check as the key holiday season approaches.

    The big unknown for UPS coming into the holiday season is the status of its labor union contracts. Earlier this year, the company successfully negotiated a national master contract with union employees, but several key local unions still haven't approved their own agreements. In particular, the union that represents workers at UPS's Louisville Worldport hub has voted against its contract and still needs to negotiate and vote on a supplemental contract. Investors have based their bullish views on a favorable resolution to the conflict, but anything other than an ideal resolution could hurt the business at its most important time of year.