All told, this was a positive report for UPS, and also for FedEx. Dim weight pricing appears to be working, and it may help UPS deal better with peak demand. The strength of B2B e-commerce growth augers well for margin in the future; again, this is good for both companies. Although if Abney is right, FedEx’s bid for TNT Express might not go as smoothly as many think.
Near Real-Time Service Performance Reporting Technology Takes Customer Service to the Next Level
UPS® (NYSE: UPS) today announced its Near Real-Time Service Performance Reporting (NRT) solution ranked first on the 2015 InformationWeek Elite 100.
Company Working with Partner Organizations to Provide Critical Relief Supplies, Assess Ongoing Recovery Needs
The UPS Foundation, the philanthropic arm of UPS (NYSE: UPS), today announced an initial commitment of $500,000 (US) to aid in response and recovery efforts following the devastating earthquake on April 25 in Nepal. The UPS Foundation will contribute a combination of cash and in-kind support to  enable the provision of urgent relief supplies as well as potential on-the-ground logistics support for long-term recovery needs.
- Profitability Improved Across all Segments
- Pricing Initiatives Drove Yields Higher
- International Operating Profit Increased 14%; U.S. Domestic up 11%
- European Export Growth of 9.4% Propelled International Gains
- Revenue Increased 3.6% on a Currency-Neutral Basis
- Reaffirmed 2015 Earnings Per Share Growth of 6-to-12%
All told, despite the significant changes in end demand since the recession, UPS productivity has held up quite well on an underlying basis. That’s the good news. However, using adjusted figures can be misleading if it turns out there’s a structural problem with UPS’s network that will cause recurring difficulties in dealing with peak demand during the holiday period.
Meanwhile, international package productivity is somewhat subject to developments in global trade policies. On balance, provided UPS demonstrates it can successfully deal with peak demand, the changing environment doesn’t seem to have had a major impact on its ROA.