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UPS Union Issues
UPS PROJECTED PROFIT INCREASE DUE TO NEW TAX PLAN
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<blockquote data-quote="35years" data-source="post: 3311815" data-attributes="member: 60822"><p>But you see UPS will be able to take advantage of the same change in the tax bill that Fed-Ex calculated for itself...</p><p>This is in addition to the corporate tax rate cut to 21%</p><p>UPS's tax deferred liabilities will be valued differently as well as Fed-Ex.</p><p></p><p>Just as Fed-Ex expects a $268M increase in profit because of the corporate rate cut to 21%; but a <strong>TOTAL 1.5 Billion boost</strong> from the tax bill overall...</p><p>UPS can expect $650M from the corporate rate cut but a far larger <strong>TOTAL boost </strong>from the tax bill overall. So, perhaps a benefit of 2x that of the smaller Fed-Ex... which would mean <strong>a TOTAL boost from the bill of 3 Billion for UPS</strong>. So perhaps there are other things in the bill which East Coast Navy alluded to that brings the boost to 6 Billion.</p><p></p><p>"Apart from the significant drop in corporate tax rate, the new law allows these companies to deduct their capital expenditures from taxable income in the year of their occurrence, which was not allowed earlier. This aspect hugely favors companies like FedEx and UPS as they invest substantially toward capital expenditure.</p><p>Naturally, their tax bills for the year would be lowered significantly due to higher deductions. This, in turn, will leave more cash in the hands of these companies to fund their capital expenditures, acquisitions and share repurchases, among others...</p><p>In February, UPS raised its quarterly dividend by 6.4% to 83 cents per share ($3.32 on an annualized basis).</p><p></p><p>During the first nine months of the year, the company paid approximately $2.1 billion as dividend to shareholders. It also bought back bought back 12.3 million shares for about $1.4 billion in the same period."</p><p><a href="https://www.zacks.com/stock/news/287870/at-52week-highs-will-fedex-amp-ups-continue-to-rally-in-2018" target="_blank">At 52-Week Highs, Will FedEx & UPS Continue to Rally in 2018?</a></p></blockquote><p></p>
[QUOTE="35years, post: 3311815, member: 60822"] But you see UPS will be able to take advantage of the same change in the tax bill that Fed-Ex calculated for itself... This is in addition to the corporate tax rate cut to 21% UPS's tax deferred liabilities will be valued differently as well as Fed-Ex. Just as Fed-Ex expects a $268M increase in profit because of the corporate rate cut to 21%; but a [B]TOTAL 1.5 Billion boost[/B] from the tax bill overall... UPS can expect $650M from the corporate rate cut but a far larger [B]TOTAL boost [/B]from the tax bill overall. So, perhaps a benefit of 2x that of the smaller Fed-Ex... which would mean [B]a TOTAL boost from the bill of 3 Billion for UPS[/B]. So perhaps there are other things in the bill which East Coast Navy alluded to that brings the boost to 6 Billion. "Apart from the significant drop in corporate tax rate, the new law allows these companies to deduct their capital expenditures from taxable income in the year of their occurrence, which was not allowed earlier. This aspect hugely favors companies like FedEx and UPS as they invest substantially toward capital expenditure. Naturally, their tax bills for the year would be lowered significantly due to higher deductions. This, in turn, will leave more cash in the hands of these companies to fund their capital expenditures, acquisitions and share repurchases, among others... In February, UPS raised its quarterly dividend by 6.4% to 83 cents per share ($3.32 on an annualized basis). During the first nine months of the year, the company paid approximately $2.1 billion as dividend to shareholders. It also bought back bought back 12.3 million shares for about $1.4 billion in the same period." [URL='https://www.zacks.com/stock/news/287870/at-52week-highs-will-fedex-amp-ups-continue-to-rally-in-2018']At 52-Week Highs, Will FedEx & UPS Continue to Rally in 2018?[/URL] [/QUOTE]
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