UPS Reaps the Reward of Price Increases

[cheryl]

UPS Reaps the Reward of Price Increases - Bloomberg

• Revenue per package rose 3% in U.S., exceeding expectations
• Courier is trying to improve efficiency of home deliveries

United Parcel Service Inc. is finally figuring out how to make money from the surge in online shopping.

Revenue per package in the U.S. rose 3 percent in the second quarter, the courier said Thursday as it reported earnings. Analysts were estimating a gain of about 2 percent from the higher prices and new fees on over-sized items the company implemented this year.

The sales increase for each parcel is bolstering results as UPS ramps up capital spending by more than a third this year to automate warehouses, add new jets and upgrade technology. The world’s largest package-delivery company is racing to improve the efficiency of residential deliveries, which are booming because of e-commerce -- but are far less profitable than shipments to businesses.

 

[wkmac]

As of 1 pm EST UPS has taken a $5 haircut from the opening share price on worries about the back half of the current fiscal year. Seems investors and analysts are not convinced that UPS can plan peak and hit the number along with the continuing costs of infrastructure upgrades.

Scott Davis sat on his hands and now we are paying the piper across the board. I'll give Abney credit as he seems to be taking that bull by the horns and riding it. And it will be a hard ride over the next couple of years too until the needed infrastructure comes on line.

 

[Brownslave688]

As of 1 pm EST UPS has taken a $5 haircut from the opening share price on worries about the back half of the current fiscal year. Seems investors and analysts are not convinced that UPS can plan peak and hit the number along with the continuing costs of infrastructure upgrades.

Scott Davis sat on his hands and now we are paying the piper across the board. I'll give Abney credit as he seems to be taking that bull by the horns and riding it. And it will be a hard ride over the next couple of years too until the needed infrastructure comes on line.

Actually the biggest is ups didn't change its full year guidance

 

[Returntosender]

9:18 ET - Investors will be heartened to see that margins in United Parcel Service's (UPS) large domestic unit came in at their highest level in nearly two years. The metric hit 14.3% in 2Q, and UPS hasn't been about 14% since 3Q15. That comes even as UPS took on about $35M in additional operating costs this period as it expands into Saturday delivery. If there's one thing tempering enthusiasm for the period, it's that UPS says the period was aided by 10c/sh, primarily from new fuel surcharges and workers compensation, reducing the bottom line beat to just a penny or two. UPS slips 0.7% premarket.

 

[Nothing by 1030 anymore]

As of 1 pm EST UPS has taken a $5 haircut from the opening share price on worries about the back half of the current fiscal year. Seems investors and analysts are not convinced that UPS can plan peak and hit the number along with the continuing costs of infrastructure upgrades.

Scott Davis sat on his hands and now we are paying the piper across the board. I'll give Abney credit as he seems to be taking that bull by the horns and riding it. And it will be a hard ride over the next couple of years too until the needed infrastructure comes on line.

Won't do any good if ups doesn't pay attention to drivers and customers too

 

[Catatonic]

Won't do any good if ups doesn't pay attention to drivers and customers too

Customers are key.
Drivers and management are just excess costs.

 

[Catatonic]

UPS stock down 4% at end of trading day.

 

[Nothing by 1030 anymore]

Customers are key.
Drivers and management are just excess costs.

Lol. Keep watching the results long term youngun

 

[Nothing by 1030 anymore]

Customers are key.
Drivers and management are just excess costs.

Lmao. Drivers and management affect customers directly.. Keep watching the results... So naive

 

[Big Package]

For the past month, we are reminded during safety and PCM that amazon accounts for 50% of the revenue in our building that "keeps us our jobs". Every amazon package has to be gently loaded or unloaded or loaded into cars like it's a newborn or something just as ridiculous.

As more and more companies decide to skip shipping altogether and do it themselves, UPS is gonna nosedive and have to figure something else out.

Granted I'm in a city near the two biggest cities in the PNW, and we are pretty progressive for fuel savings and environment.

Decent example:

We order most of our groceries online, setup pickup time preferences, and go get our groceries ourselves when their truck comes. Sometimes there's a coupon with your order, other times if you buy bags or baskets they'll fill them and take a percentage off, and if you return boxes/bags etc, you get a randomized percentage off your order from 5 to 20%. If there's something you forgot to order and you're on the end of the route, they'll discount it more so they never return anything and go back to their warehouse empty.

People who continuously return boxes and bags or baskets perpetually keep the 20% discount. It stacks up to 90 days ahead. It's healthier for the environment, healthier for us, and cheaper than bulk wholesale stores. A *lot* cheaper. No need to track anything. It's all grains nuts berries so we have to buy a few other things, but saves us so much money and zero shipping.

 

[Brownslave688]

9:18 ET - Investors will be heartened to see that margins in United Parcel Service's (UPS) large domestic unit came in at their highest level in nearly two years. The metric hit 14.3% in 2Q, and UPS hasn't been about 14% since 3Q15. That comes even as UPS took on about $35M in additional operating costs this period as it expands into Saturday delivery. If there's one thing tempering enthusiasm for the period, it's that UPS says the period was aided by 10c/sh, primarily from new fuel surcharges and workers compensation, reducing the bottom line beat to just a penny or two. UPS slips 0.7% premarket.

I don't understand how workers como helps the bottom line?


14% margin is very good for the teamsters heading into negotiations.

 

[FrigidFTSup]

I don't understand how workers como helps the bottom line?


14% margin is very good for the teamsters heading into negotiations.

That margin isn't because of small package.

 

[Brownslave688]

That margin isn't because of small package.

It said domestic unit?

 

[MyTripisCut]

That margin isn't because of small package.

We know, it's because of YOUR small package....

 

[FrigidFTSup]

It said domestic unit?

Freight and supply chain are fueling that growth.

 

[FrigidFTSup]

We know, it's because of YOUR small package....

Switch to decaf Jersey

 

[Catatonic]

Lol. Keep watching the results long term youngun

Lmao. Drivers and management affect customers directly.. Keep watching the results... So naive

I'm 62 and 40 years with UPS.
Perhaps I understand the outside world better than some.
People tend to feel protected behind the walls of UPS.
It's not UPS ... it's XYZ Corporation.

 

[Nothing by 1030 anymore]

I'm 62 and 40 years with UPS.
Perhaps I understand the outside world better than some.
People tend to feel protected behind the walls of UPS.
It's not UPS ... it's XYZ Corporation.

Perhaps I understand better than some that ups isn't your usual corp

 

[Catatonic]

Perhaps I understand better than some that ups isn't your usual corp

That's delusional.
Wanna buy a bridge?

 

[FrigidFTSup]

That's delusional.
Wanna buy a bridge?

Grass is always greener....lol