Discussion in 'UPS Discussions' started by pretzel_man, Jun 23, 2008.

  1. pretzel_man

    pretzel_man Well-Known Member

    UPS has announced lower earnings expectations for the second quarter.

    Now is when the rubber meets the road. Can UPS act like a private company and manage to the long term??

    While I'm in favor of most of the things UPS has done, I think going public was a poor choice. I think thats the one thing Jim Casey would never approve of.

    Hold on for this ride.

  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I have a feeling this ride may last for a while. I'm just glad that I have enough tickets (seniority) to where I should be able to stay on the ride until the end (retirement).
  3. But Benefits Are Great!

    But Benefits Are Great! Just Words On A Screen

    I was going to start a thread on this sad event, the passing of George Carlin. Genius is not too strong of a word.

    Rest in Peace, George - Thanks for the laughs...

    (I'd Like To Buy, a Hot Water Heater...
    What The Hell For? Hot Water Don't Need To Be Heated.....
    What You Want is a COLD water heater....
    or how 'bout a Hot Water Cooler?)
  4. PassYouBy

    PassYouBy Unknown Acrobat

    HOLY C#$P, I didnt know he died... Guess I need to listen to the podcasts.... Comedy 104 on ITUNES.
  5. moreluck

    moreluck golden ticket member

    There are already 2 threads on Carlin. One under Life After Brown and one under Current Events.
  6. BigBrownSanta

    BigBrownSanta New Member

    Does this mean $60 will be the new plateau that UPS stock hovers at for the next 5 years?
  7. Baba gounj

    Baba gounj pensioner

    you wish
  8. ihadit

    ihadit Member

    Maybe its time to take a serious look at reducing the bloated levels of management. As technology increases, how many levels of overpaid under utilizied people are needed? We now have center managers and dm's out following people as sups are busy delivering pkgs. Seems to me that certain people are just trying to look busy to justify their job.
  9. bellesotico

    bellesotico BOXstar

    I agree..I mean next thing you know sups will be in the cars doing add/cuts instead of preloaders..oh wait..thats already happening.
  10. HialeahUPSer

    HialeahUPSer New Member

    Haha. I was gonna say, they do ALL the add/cuts in my building. And you can catch them loading a truck of two about 3 days outta the week. P/T sups are overpaid loaders/unloaders.
  11. mattwtrs

    mattwtrs Retired Senior Member

    You people that are moaning about add/cuts on the preload need to get a life. The drivers have more headaches than you can imagine with routes that are cut! Thank God I'm retired and don't have to endure this recession!
  12. WhatPCM

    WhatPCM Insubordinator

    Add/cuts are my favorite. I am at the very end of the belt, so by the time the sup gets to me to give me the paper work I already have the pieces from the other loaders on the trucks. Then two hours later she comes back down and i have to walk all the pieces back up because they changed their minds. OH JOY!!!!!!!
  13. ihadit

    ihadit Member

    UPS at a 4 1/2 low!!!!! What are you doing about it Scotty or are you going to claim you inherited this mess also? How about we just keep blaming it on high fuel prices and keep ignoring management incompetence.
  14. But Benefits Are Great!

    But Benefits Are Great! Just Words On A Screen

    Trying to get a qtrly P&L that breaks out fuel charges, instead of just a general category of "Selling, General, and Administrative"


    Any ideas? That catagory covers such a wide expanse as to be meaningless.
  15. moreluck

    moreluck golden ticket member

    Big Brown's Quarter Not So Bad ... Especially Compared With FedEx's Results

    Saturday, July 25, 2009
    • Analysis by: John Schulz
    • Analysis of: UPS Earnings Decline 49 Percent as Downturn Cuts Demand | query.nytimes.com
    • Source: www.glgroup.com
    Summary: United Parcel Service posted second-quarter net income of $449 million on $10.8 billion in revenue. That was a 49 percent drop in earnings and a 17 percent drop in sales compared with year-ago figures. The company's chief financial offer, Kurt Kuehn, told analysts that the world's largest transport company is "cautious, frankly" about the rest of 2009's earnings. The company says it has no confidence that either demand or activity is going to pick up substantially" for the next several months.

    Analysis: The people who run United Parcel Service are a tough bunch to satisfy. Nearly everybody else in the transport industry would die to earn $15 million net profit every day in the waning days of a recession. Not UPS.

    Earnings slumped in the second quarter to "only" $445 million, a 49 percent drop from 2008 second-quarter earnings. At the company's mainstay, its U.S. domestic package segment which produces 63 percent of revenue, the unit's operating ratio was only a so-so 93. For UPS, this is like striking out three times in four at-bats.

    Still, counting UPS's first-quarter earnings of $401 million, that means the company earning $846 million in the first half of the year -- not bad, considering the first quarter traditionally is slow, China imports have slowed, the worldwide recession has everyone thinking of ways to cut back and other economies. That was evident in the fact that UPS planes flew 11 percent fewer hours, saving some 14 million gallons of fuel in the second quarter. That was a major factor in UPS consuming 54 percent less fuel in the quarter for a total fuel bill of $539 million as oil prices collapsed in the quarter.

    But what really is impressive, analysts' whining not withstanding, is UPS's performance vis-a-vis its major competitor, FedEx. While UPS was earning $846 million using a Teamsters work force, non-union FedEx actually lost $779 million for its corresponding six months.
    Who says unionized workers can't be productive?

    Hidden in the UPS earnings report was a glimmer of hope for its LTL operation and heavy freight operators in general.

    While much of the LTL industry is grappling with double-digit percentage drops in volume, UPS's "supply chain and freight segment" (which includes UPS Freight, its LTL operator) posted a tonnage drop of "only" 6.9 percent in the second quarter. That fueled an operating ratio of 93, one of the better figures posted by anyone in the sector.

    Of course, that is if one concludes that UPS Freight makes up the lion's share of UPS's "supply chain and freight segment." Nobody really knows. The company will not break out results from its LTL operation separately, so one really never knows. But unless UPS's supply chain third party logistics operation is going great guns, one presumes the bulk of this unit's performance was turned in by UPS Freight.

    If that's the case, hat's off to Big Brown. It's one of the best performances of the quarter. Makes one wonder what they will do when the economy comes roaring back. It will come roaring back, right?
  16. Solidarity413

    Solidarity413 New Member

    They were complaining about how sup's do add/cuts, which IS working. Which should never happen, so I'm confused on how you have a problem with what they said?
  17. Solidarity413

    Solidarity413 New Member

    You need to file. Sup's don't touch packages on my dock. And doing add/cuts are a no-no. This can be stopped very easily.
  18. dannyboy

    dannyboy From the promised LAND


    While the doom and gloom continues, we are turning a profit, unlike others in our sector that have either gone away, or have lost millions (hundreds of millions actually).

    So while the return is not a great as it once was, for now it is not too bad.

    I agree, going public might not have been a really good idea, but then again, with stock prices going down, it would be a great time to buy back a lot (if not all) and become private again.

    Then just maybe we can promote someone to the captains chair that understands missing service is bad, too many worthless mouths at the feeding trough is not good, and we needs to go back to the bottom up greatness that once was UPS. And print a nice calendar on real paper with real ink so that it will last more than two weeks on the wall.

    Hell, I might be tempted to go back to work at a UPS like that......

  19. pretzel_man

    pretzel_man Well-Known Member


    I guess hindsight is always 20/20. From the date of that post until today, both UPS and FedEx are down 20%. The market (S&P, Dow) are down a little worse than that.


    BLACKBOX Life is a Highway...

    I don't get it. At one time, just recently in fact, FDX stock price was below ours, now almost $12.00 higher and expanding everyday. I'm a stock novice so clue me in how FDX is climbing, while our seems stuck in the mud.