UPS Lowers 2Q Earnings Expectations

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speeddemon

Guest
Stock is at a four year low. $62.26. Our companies fuel bill is double YTD that it was last year. We can expect layoffs, cut routes, and accidents and injury frequencies to go up. Id bet money on it. Over allowed hours are going to be scrutinized. My manager said they had a conference call this afternoon about this. He said in a nutshell, the driver group is screwed. Thats ok, 9.5 and harrasment greviences pay well.
 

pkg-king

Well-Known Member
Stock is at a four year low. $62.26. Our companies fuel bill is double YTD that it was last year. We can expect layoffs, cut routes, and accidents and injury frequencies to go up. Id bet money on it. Over allowed hours are going to be scrutinized. My manager said they had a conference call this afternoon about this. He said in a nutshell, the driver group is screwed. Thats ok, 9.5 and harrasment greviences pay well.

We'll see. I believe we are going to get take a hit due to fuel costs but don't believe there will be any cut routes or layoffs.
 
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25yrvet

Well-Known Member
Additional fuel surcharge in the future???

I've got people ordering stuff like crazy instead of driving 70 miles to the nearest Walfart.

It sure would cut our miles down if Mr EDD could dispatch with some common sense.
 

BLACKBOX

Life is a Highway...
I don't think UPS can keep going without making adjustments to the slowing economy. Company's are either consolidating or downright closing their doors. This is only the beginning of what will be some kind of drastic action taken to somehow deal with what could be $5.00 gas by the end of summer for regular.

I already had one customer complain to me about the $9.00 gas surcharge for a small package. Purse strings are being tightened and they will squeeze every ounce of productivity out of you.

Don't believe UPS won't ask the union for concessions or face system wide layoffs. The stimulus package was nothing but a temporary distraction. Sock money away if you feel you don't have the seniority to get you through times you're not getting your hours.
 
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speeddemon

Guest
Additional fuel surcharge in the future???

I've got people ordering stuff like crazy instead of driving 70 miles to the nearest Walfart.

It sure would cut our miles down if Mr EDD could dispatch with some common sense.

Amen to that. Our EDD dispatch caused me to run 180 miles the other day on a route that should have ran 110. No common sense whatsoever.
 

feeder53

ADKtrails
I believe we will see some adjustments, but I would like top think that because of the standing of UPS, and the fact that all package delivery companies are all paying the same for fuel....UPS may be able to pull ahead if they do it right.
 

But Benefits Are Great!

Just Words On A Screen
I asked this on another thread, but received no response;

As a public company, P&L statement for UPS is public. Anyone know of a link that shows P&L broken down further, detailing expense lines?

I'd like to see the fuel numbers.
 

UpstateNYUPSer(Ret)

Well-Known Member
BBAG, I know that you can review financial statements on ups.com but I don't think that they will be as detailed as you may like. I don't recall seeing a Profit and Loss statement on there but I could be wrong.
 

moreluck

golden ticket member
I sometimes don't understand the strategy......I'm assuming theres IS a strategy.

UPS warns of lower earnings than expected and BOOM, they take a big hit. Then they'll do the actual reporting on July 22 and BOOM they'll take another hit.

Why can't they just shut up 'til it's time to do the actual reporting and take one substantial hit and be over with it ??
 

But Benefits Are Great!

Just Words On A Screen
I sometimes don't understand the strategy......I'm assuming theres IS a strategy.

UPS warns of lower earnings than expected and BOOM, they take a big hit. Then they'll do the actual reporting on July 22 and BOOM they'll take another hit.

Why can't they just shut up 'til it's time to do the actual reporting and take one substantial hit and be over with it ??


Because as a public company, they have the responsibility to make an announcement now if they know expectations are way off. Believe me, they didn't WANT to do it, they MUST do it, being a publicly traded company.

If Wall Street expects earnings of a buck a share, and management knows that this is way off (higher or lower) they MUST make an announcement.
 

UpstateNYUPSer(Ret)

Well-Known Member
I am by no means an expert on the stock market but I believe that publicly traded companies have an obligation to its shareholders to provide earnings guidance, whether positive or negative, so that these shareholders can make an informed decision as to whether to hold on to their shares or to sell them. This earnings guidance can also be used by potential shareholders to decide whether they wish to purchase shares of this stock or not. I have used such guidance in the past, particularly when I purchased shares of Sirius Satellite Radio on speculation that its merger with XM would be approved. (BTW, I am still waiting.)

I can see your point and I agree, we will get hammered again on 7/22, but I believe that disclosing earnings guidance is a requirement if you are a publicly traded company.
 

Leftinbuilding

Well-Known Member
I sold all of my UPS stock a few weeks ago. Sold it a little over $69.00 per. Looks like my timing was good. Just got tired of the stagnation.
 

UpstateNYUPSer(Ret)

Well-Known Member
Sell Short - Way to make $$$ on a stock in decline. Selling first, buying back (covering) at a later date, when stock is lower.

I got that part but what does that have to do with Leftinbuilding reinvesting his dividends and buying more UPS stock. Besides, you can't buy short through payroll deduction or through the SMA on the 401K. You would have to have your own brokerage account to do that.
 

But Benefits Are Great!

Just Words On A Screen
I got that part but what does that have to do with Leftinbuilding reinvesting his dividends and buying more UPS stock. Besides, you can't buy short through payroll deduction or through the SMA on the 401K. You would have to have your own brokerage account to do that.

I apologize. I will stop making comments that do not clearly contribute with the flow of the thread.
 
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