Discuss: UPS Forecasts Profit Less Than Estimates; Sales Fall

[cheryl]

UPS Forecasts Profit Less Than Estimates; Sales Fall - Bloomberg
United Parcel Service Inc., the world’s largest package-delivery company, forecast lower profit than analysts projected and said second-quarter earnings fell 49 percent as the recession cuts business demand.

UPS said profit for the three months through September will be 45 to 55 cents a share, less than the 60-cent average of 16 analyst estimates compiled by Bloomberg. Second-quarter net income declined to $445 million, or 44 cents a share, the Atlanta-based company said today.

[ScrapperK]

From the UPSer's website:

"UPS today reported operating profit of $895 million on a 16.7 percent revenue decline for the second quarter of 2009. Adjusted diluted earnings per share were $0.49 compared to $0.85 last year."

I am not compelled to believe any other report, as this is what was delivered to the SEC. Operating Profit of $895 million. I heard some departments were enjoying bonuses. I wonder where my incentive dollars are going.

Spent on a 7 minute pep rally video is my best first guess.

[clueless]

Originally Posted by ScrapperK

From the UPSer's website:

"UPS today reported operating profit of $895 million on a 16.7 percent revenue decline for the second quarter of 2009. Adjusted diluted earnings per share were $0.49 compared to $0.85 last year."

I am not compelled to believe any other report, as this is what was delivered to the SEC. Operating Profit of $895 million. I heard some departments were enjoying bonuses. I wonder where my incentive dollars are going.

Spent on a 7 minute pep rally video is my best first guess.

The headline of the Bloomberg article is referring to UPS' Q3 guidance--the company is guiding for an eps in the range of 45 to 55 cents--with a midpoint of 50 cents. Given that consensus estimates were for an eps of 60 cents, the company is guiding lower, not in-line with street estimates.

In addition, while the company met its eps expections of 49 cents per share on an adjusted basis, the company missed its top line number for the most recent quarter by reporting revenues of $10.8B vs consensus estimates of $11.02B.

BTW--as far as those numbers you cited being "delivered to the SEC"--the 8-K was used to file (as an exhibit containing the press release) the result of operations and financial condition as a current event--these numbers have not been filed (yet) as a 10-Q which is certified by the CEO and CFO. The 'official' numbers will be in the 10-Q. That said, they should not deviate much from those figures contained in the press release.

[ScrapperK]

While in agreement that sales did not meet expectations, and were down, I was more directing to the point that UPS did score an incredible profit in a down market. If just the profit was distributed equally among all employees, (415,000 at last estimate) this would mean + $2600 to each employee. Would each emplyee gain a $2600 increase based on merit? Certainly not. There is however plenty of 'extra' cash lying around to meet a merit increase to all employees, for the outstanding job of keeping the company afloat during these tough economic times.

The message we recieved from our managers was that sales are down by %x percent , doom and gloom on the horizon. I just wanted to point out to my fellow Browns that things were not as poor as they have been painted for UPS.