UPS Makes Shareholders Wait to Celebrate

cheryl

I started this.
Staff member
UPS Makes Shareholders Wait to Celebrate - Bloomberg

The company needs to devote some of its tax windfall to network upgrades, but investors are right to be wary.

United Parcel Service Inc. is doing right by President Donald Trump's standards, but that's hardly what shareholders want to see right now.

The delivery company's predominantly U.S.-focused business and high effective tax rate had Wall Street eyeing a cash and profit windfall as the recently passed tax cuts take hold. But a joyous announcement akin to rival FedEx Corp.'s December estimate of an extra $1 billion in profit this year was not to be. Instead, UPS on Thursday said it would funnel a large chunk of the extra resources back into capital expenditures to help adapt its network to the deluge of e-commerce shipments. Its 2018 guidance was also well short of analysts' expectations even at the high end of the range. Shareholders were unimpressed.
 

Catatonic

Nine Lives
UPS Makes Shareholders Wait to Celebrate - Bloomberg
Shareholders were unimpressed.
It's about time the company starts doing the right thing. That's what they used to do. Take care of business and the shareholders will eventuality be rewarded.
I think it is cool that UPS made a great investment in it's future rather than selling out to the Big Time investors that ran up the stock price in anticipation of a huge dump into dividends.

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brownIEman

Well-Known Member
From the drivers?
That's total :bsbullf:

Human nature. There is a martyr syndrome stripe on all of us, some just have it wider than others. One of the things that never fails to amuse me about the driver group, they continue to be the highest compensated in the industry by a mile and yet every contract tons posting here and griping in the centers about the horrible concessions the Union gave up.

Anyhow- this has to be fake news. Every one knows the board and MC only care about shareholders and would never think long term since circa '99. :wink2:

Gratifying to see, nevertheless.
 

1989

Well-Known Member
Human nature. There is a martyr syndrome stripe on all of us, some just have it wider than others. One of the things that never fails to amuse me about the driver group, they continue to be the highest compensated in the industry by a mile and yet every contract tons posting here and griping in the centers about the horrible concessions the Union gave up.

Anyhow- this has to be fake news. Every one knows the board and MC only care about shareholders and would never think long term since circa '99. :wink2:

Gratifying to see, nevertheless.
Nobody in the industry does what package drivers do. So who are you comparing package car drivers to?
 

brownIEman

Well-Known Member
Nobody in the industry does what package drivers do. So who are you comparing package car drivers to?

The other delivery drivers in the industry and I was comparing compensation not work load.

On average a UPS drivers workload is higher than his counterparts, but that is not universal.
 

brownIEman

Well-Known Member
So you are making a BS comparison?

No. I'm comparing compensation and pointing out that it seems silly for people who have top tier compensation packages which only go up every year constantly complain about being screwed.

Look, UPS drivers deliver more than their counterparts, in general, because UPS has more volume and therefore greater stop density. The competition is growing faster than UPS, so the stop density gap is closing slowly but surely. The compensation gap is in general widening, not closing. You do the math.
 
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