Q1 Cost Initiative - No Surepost, no Sat Ground, no Guarantees

[WTFm8]

Mail carriers all across the country would their pants if all Surepost was dumped on them.

Already do. They’re in pretty bad shape cause nobody wants to do it.

 

[bitter to the bone]

this. UPS is going under

the problem is that Amazon is going to be the new undisputed king. Better start writing those Amazon resumes.

 

[Richard Harrow]

Siphon fuel out of the red tags or the brand new trucks without plates.

We have plenty of red tags where I'm at.

Easily 30 package cars, maybe 15 or 20 tractors. And that's what's out in front of my center, I don't go around the back of the building where they keep the ADA's, parts cars, and where they are supposed to keep the red tags.

 

[zubenelgenubi]

I'd like to think the reports would look good without all this extra hoopla. Why try to make them appear "better" to outsiders? Talk about honesty and integrity

The good news is that they'll stop trying to fire drivers for dishonesty, since they won't be able to tell the difference. I tried to see if the SEC had any regulations against this sort of shuffling of expenses, since it is misrepresentation, but haven't found anything yet.

 

[1989]

The good news is that they'll stop trying to fire drivers for dishonesty, since they won't be able to tell the difference. I tried to see if the SEC had any regulations against this sort of shuffling of expenses, since it is misrepresentation, but haven't found anything yet.

It is not dishonest to cut expenses. People talk like it’s some kind of accounting scandal.

 

[KOG72]

Wonder how much money they saved for cutting cost for one day

 

[zubenelgenubi]

It is not dishonest to cut expenses. People talk like it’s some kind of accounting scandal.

But it's not technically "cutting", at least not all of it. The issue is that in some cases they are pushing expenses off a few days in order to try to meet the numbers they said they would for the quarter. In reality they are making it look like the company did better than it actually did in order to get the desired response from shareholders. I'm not passing any judgment about it, just curious about whether that violates any SEC regs.

Enron didn't technically violate any SEC regs, but we know how that story ended. I'd hate to see something like that happen at UPS just because someone had the bright idea to get creative with the books. I know it's a stretch to compare the two at this point, but every financial disaster started somewhere.

 

[1989]

But it's not technically "cutting", at least not all of it. The issue is that in some cases they are pushing expenses off a few days in order to try to meet the numbers they said they would for the quarter. In reality they are making it look like the company did better than it actually did in order to get the desired response from shareholders. I'm not passing any judgment about it, just curious about whether that violates any SEC regs.

Enron didn't technically violate any SEC regs, but we know how that story ended. I'd hate to see something like that happen at UPS just because someone had the bright idea to get creative with the books. I know it's a stretch to compare the two at this point, but every financial disaster started somewhere.

Do you think UPS is hiding billions of dollars in debt?

 

[zubenelgenubi]

Do you think UPS is hiding billions of dollars in debt?

Not yet.

But neither was Enron to start out. I was just making the comparison about creative accounting. If UPS has to do this sort of thing once in a blue moon to maintain stability, that's one thing. If it becomes a regular habit to the point that they fail to actually manage properly throughout the quarter, then someone comes up with another bright idea to make the numbers look good, and on, and on... I don't think it hurts to think about the potential ramifications of questionable decisions.

 

[1989]

Not yet.

But neither was Enron to start out. I was just making the comparison about creative accounting. If UPS has to do this sort of thing once in a blue moon to maintain stability, that's one thing. If it becomes a regular habit to the point that they fail to actually manage properly throughout the quarter, then someone comes up with another bright idea to make the numbers look good, and on, and on... I don't think it hurts to think about the potential ramifications of questionable decisions.

As long as they report the ACTUAL numbers, there is no fraud occurring.

 

[Netsua 3:16]

Been thinking about this a lot; we work in a volatile industry. Yes the total volume increase is consistently there year to year but it's a tough gig to try and predict numbers week to week, month to month.
We all go through it; some weeks are light and the layoff list is long then the next week could be borderline peak stuff where we're having to get rentals and borrow drivers. And this can ultimately happen at any time, obviously we plan around hot spots during the year such as Prime week, peak, etc. And it's safe to say that Feb-May is about the closest thing we get to a "slow season." Other than that, the fluctuation has got to be difficult to forecast for, and report to shareholders. UPS has always stepped over a dime to make a quick penny, and now you're sort of seeing an "apex" in that mentality where these number crunching cost cutting measures seem violent to us.
The repercussions that incur when we don't make our quarter forecast are likely stiffer than they've ever been.

 

[zubenelgenubi]

As long as they report the ACTUAL numbers, there is no fraud occurring.

That's where the hair-splitting comes in. Do you report the expenses when they occurred, or when they were paid out? If UPS has established using cash accounting, then, yes, they are not doing anything wrong from an accounting standpoint. From an operational standpoint, however, maybe not the best way to go. I just think that relying on these last minute cost shuffling measures to meet projections can be hazardous.

 

[burrheadd]

Wonder how much money they saved for cutting cost for one day

 

[Days]

That's where the hair-splitting comes in. Do you report the expenses when they occurred, or when they were paid out? If UPS has established using cash accounting, then, yes, they are not doing anything wrong from an accounting standpoint. From an operational standpoint, however, maybe not the best way to go. I just think that relying on these last minute cost shuffling measures to meet projections can be hazardous.

Well it piles on to next quarter. So Q2 is already off to a rough start

 

[Box Ox]

Well it piles on to next quarter. So Q2 is already off to a rough start

Maybe Q2 doesn't matter as much. Results released during summer vacations, etc etc.

 

[Maple Grove MN Driver]

The good news is that they'll stop trying to fire drivers for dishonesty, since they won't be able to tell the difference. I tried to see if the SEC had any regulations against this sort of shuffling of expenses, since it is misrepresentation, but haven't found anything yet.

Wow you really don't understand.

There is nothing illegal about reducing expenses to boost Quarterly earnings numbers.

 

[zubenelgenubi]

Wow you really don't understand.

There is nothing illegal about reducing expenses to boost Quarterly earnings numbers.

Show me where I said that reducing expenses is illegal. Maybe it is you who does not understand?

In cash accounting, you record expenses when paid out, which I assume is the accounting method UPS uses (haven't found any info to verify). In the accrual method, expenses are recorded when incurred. Shuffling off expenses from one quarter to the next is not the same as cutting expenses, and, though it may not technically be wrong under cash accounting, it certainly is questionable, and disruptive to operations. It also has the negative effect, as @Days pointed out, of making a rough start for the next quarter.

Doing this every once in a while probably won't be a big deal. But if management gets into the habit of waiting 'til the last minute to try to make the books look good, rather than making good decisions throughout the quarter, it can lead to more serious issues. But, if you had read any of my posts after the one you quoted, you would already know all this.

 

[Maple Grove MN Driver]

Show me where I said that reducing expenses is illegal. Maybe it is you who does not understand?

In cash accounting, you record expenses when paid out, which I assume is the accounting method UPS uses (haven't found any info to verify). In the accrual method, expenses are recorded when incurred. Shuffling off expenses from one quarter to the next is not the same as cutting expenses, and, though it may not technically be wrong under cash accounting, it certainly is questionable, and disruptive to operations. It also has the negative effect, as @Days pointed out, of making a rough start for the next quarter.

Doing this every once in a while probably won't be a big deal. But if management gets into the habit of waiting 'til the last minute to try to make the books look good, rather than making good decisions throughout the quarter, it can lead to more serious issues. But, if you had read any of my posts after the one you quoted, you would already know all this.

Wow you really don't get it.
Stick to slinging cardboard.

 

[zubenelgenubi]

Wow you really don't get it.
Stick to slinging cardboard.

Please demonstrate how I don't "get it". You probably don't understand the things that I've written, which makes you feel that you aren't very smart. Instead of engaging in an intelligent conversation wherein you might learn something, you choose to take your anger at your own lack of understanding out on me. Does that about sum it up?

 

[soberups]

Wow you really don't get it.
Stick to slinging cardboard.

...says the guy who doesn’t even work for UPS and has no concept of what ORION is.
You should stick to watching your “Murder She Wrote” reruns and stocking up on Depends when they go on sale.