profits to management!! WHY??

[ddomino]

"Consolidated operating profit rose 18.2% to $1.55 billion compared to $1.31 billion for the prior-year period." And "an increase of 387,000 packages per day in the United States." Both quotes taken from Mike Eskew ceo on the UPS investor relations page. Why is it they are always crying poor mouth?... We are loosing packages to every other carrier...go out and sell...lead=jobs...etc...etc.The bottom line is UPS and the board are making money hand over foot and want to reward investors (aka mostly UPS board and management) for investing. How much longer are we going to let them feed us smile*?

 

[tuxedo]

Most of the profits go to salary and benefits (that is a fact that can be verified). The notion that the profits are going to share holders is invalid considering that the share price is just slightly higher then it was when we intially went public.

 

[deliver_man]

Hmmm.... I thought profits were calculated AFTER salary and benefits? Don't those count as operating expenses? I was under the impression that "profit", at least the net, was what the company banked. I'm wrong a lot though.

 

[ok2bclever]

Certainly not this time deliver_man as you tongue in cheek well no.

Verify all you want, but profits are certainly after expenses and you will never hear eskew state that salary and benefits are not expenses!

"The notion that the profits are going to share holders is invalid. . ."

Now there is an inaccurate statement and one that would surely tick off a true share holder.

The growth of share price is nice, but subject to many many things besides profit ratio.

As far as where a lot of "profit" goes, can you say "dividend"?

 

[robonono]

Can you also say: purchases of Overnight, Lynx, Menlo, etc.

Profits can be either held in reserve for future needs, used to expand the business through strategic investments, used to repurchase outstanding shares of company stock, and/or paid out to investors as dividends.

 

[air_upser]

ddomino, what exactly are you asking for?

 

[ok2bclever]

Yep, all those things potentially reward the share holders.

Dividends, short term, acquisitions, investments, share repurchasement, long term.

 

[moreluck]

does someone know if dividends are counted in the expense column?

 

[upsdawg]

Profits---profits--profits----isn't that why we work for UPS---and work hard? So the company can continue to pay the benefits--pay shareholders the quarterly dividends--acquire companies to make us competitive in the future---investing in our future..buying new technology--new equipment(Boats,Planes, Trucks?)....am I missing somthing?

We work for a company that is responsible for 5% of the Gross National Product---and it's officers (Board of Directors) deserve to be compensated----just like any other company's Board of Director's!!

I would rather complain about all of the profits that UPS is making----rather than operating in the red!!

 

[ok2bclever]

There is certainly nothing wrong with making a profit.

Especially compared to the alternative.

moreluck, a company uses an income statement which is a record of its earnings or losses for a given period. This will list all of the money a company earned (revenues) and all of the money a company spent (expenses) during this period.

This includes additional stuff like depreciation and taxes and gets them to a net earnings or profit.

At this point they list things like dividends and retained earnings.

Retained earnings is the amount of money that a company keeps for future use or investment.

As a very conservative company UPS has lots and lots of this. (you will also hear this referred to as "cash rich").

)

 

[air_upser]

exactly dawg. I am more concerned with whether the company will be around in 20-30 years when I collect my pension versus whether I get a share of the profit this year. While going public has caused us to do things that I don't agree with, and has affected my pay, I have no doubt in the ability of UPS to compete far into future. We make good money, we have a good pension, good benefits(yes, the cost is going up), and no debt. There are bad managers and bad employees, but that is no different than any other company. Instead of asking "where's my share?" why don't we ask "how can we make more? How can we make it better?". Just my opinion.

 

[dannyboy]

Whats wrong with saying, If I make it better, why can I not make more?

One thing Ups needs to understand and address, is that it cost anywhere from 10-100 times more to get a new customer than it does to keep one. So why are we not focusing some of our energy to make UPS better for the customers that we have.

d

 

[speeddemon]

How come the value of a UPS driver, keeping a customer by the relationship they have forged with them, is not rewarded with a bonus then? God knows it aint management or customer execs.

 

[isdrone]

Every time an earnings report comes out we have this same discussion.
DDomino. UPS is in business to make money - period. We can all complain about how much we make for the work we do. I would love to have more money, but it is not going to happen.
I am assuming that you are a driver? How much do you make compared to FedEx, DHL, USPS, etc.? If you could make better money than I would assume you would be working somewhere else.
All of us - management and hourly agreed to perform work for a price - salary, hourly wage, whatever. Last time I looked my check showed up at its usual time for the amount I expected. I am sure yours did as well.
If you want more ask for it in the next contract. Also, would you agree to a pay cut if the company went in the tank? Look at the pilots - the rest of the airline industry (except for Southwest) is a wreck. They would be hard pressed to find a job with another carrier for the same money they are making now.
You need to look very hard at the domestic package numbers. The growth is anemic at best. International (China in particular) is fueling the earnings. DHL & FedEx are eating away at our volume and DHL will get better at deliverying packages. The earnings were also inflated by the lack of spending - buildings, etc. this year. Cost reductions will only work for so long. Remember the old saying "packages=jobs"? It still holds true.
This is capitalism at it's finest.

 

[rushfan]

That is complete crap! DHL and Fedex are not eating away at our volume! If you ever ride with a driver see how much we deliver to each bulk and resi stops compared to our competition, you will be surprised. My pickup volume has increased as has other routes in our area. My customers know me and know that we provide service second to none. In fact, many who switched to the clown guys, i.e. dhl, have come back due to horrible service. Same with fredex. I'm aware of the competition-not afraid of it.

Look at our logistics side. I continually deliver many pieces from the facilities we own in Louisville. It is booming.

My job is to be aware of anyone trying to take business from us. Many of us do one hell of a job doing so.

So when I hear how we are doing poor etc., it goes in one ear and out the other. I'm glad ups is such a tightwad when it comes to money management. I'll know we will be around for another 100 years.

 

[tieguy]

ddomino I would think you would want to see the company make money. Makes it much easier to ask for that next contract if the company is making money.

Sales lead get us packages. Do we have to lose our shirts before you think you should fill out a sales lead?

 

[1timepu]

Tieguy sales lead my as$ us drivers need more volume like we need it, monday 190 stops...yesterday tues 200 stops.. I am fed up with over dispatching the trucks and making the better drivers do more!!!! As far as I am concerned any supervisor or manager who pushes more work to the good drivers and less to the bad drivers ARE not doing their job! And myself being one of the good ones have had enough, in the next contract the Union should push for double time for overtime and or dispatch the trucks 8, 8.5, so you tell us to turn in sales leads for what??? so I can have 225 stops in July, Brown does not Own ME.. hopefully in the next contract we can get more time with our families and less time working

 

[tieguy]

Don't follow your logic? How does you turning in a sales lead for your route which should increase pickup volume end up causing you more delivery stops?

 

[1timepu]

Because while I'm putting in a sales lead here in Jersey my fellow driver in California is doing the same,and yur logic is to cut routes and over dispatch, why should we bring in more volume, the volume is up and they still cut routes, and o yeah that sales lead from California ends up on my truck in NJ thats 1,2 maybe 3 more stop 2 maybe 3 times a week and maybe more, do they put in more routes noooooooo they cut them, now you tell me where is the logic in that????

 

[upsdude]

Sales Lead?

Yesterday, predicted heat index of 115-120 degrees. Management cuts 2 routes (we had folks to run them). We leave the building at 9:15. 12 drivers were still out at 7:15. Missed pieces galore. We cant/wont handle the volume we have. Im too embarrassed to ask a person/company to hand us their volume.