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UPS Press Release

E-Commerce Drives UPS 2Q Shipments Up 7.2 Percent, UPS 2Q EPS Increases 7.1 Percent

  • U.S. Domestic Daily Packages Increased 7.4%
  • International Export Shipments Climb 9.1% per Day
  • Supply Chain and Freight Segment Operating Profit Grows 11%
  • Full-Year Adjusted EPS Guidance Lowered to a Range of $4.90 to $5.00
  • Increases 2014 Expenditures for Capacity and Peak Projects to $175M
  • Recognizes Charge to Move Teamsters to Defined Contribution Healthcare Plans

PS (NYSE: UPS) today announced adjusted diluted earnings per share of $1.21 for the second quarter of 2014, a 7.1% improvement over the prior year period. E-commerce shipping in the U.S. and strong International Export growth contributed to a 7.2% increase in global package shipments.
As previously announced, the company completed the transfer of post-retirement liabilities for certain Teamster employees to defined contribution healthcare plans and recorded an after-tax charge of $665 million. On a reported basis, including this charge, second quarter diluted earnings per share decreased 57% to $0.49.

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UPS News

Why United Parcel Service (UPS) Might Surprise This Earnings Season – NASDAQ

Investors are always looking for stocks that are poised to beat at earnings season and United Parcel Service, Inc. may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because United Parcel Service is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings-with the most up-to-date information possible-is a pretty good indicator of some favorable trends underneath the surface for UPS in this report.

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UPS News

Southern California UPS driver arrested on gun trafficking charges – 89.3 KPCC

A Southern California driver for United Parcel Service was arrested Friday, accused of stealing dozens of guns bound for a Turner’s Outdoorsman store in Rancho Cucamonga.

Curtis Hays, 36, allegedly funneled 72 weapons, including 12-gauge shotguns and .45-caliber pistols, to an associate for sale on the region’s bustling black market for illegal firearms.

“This is an unusual case,” said Carlo A. DiCesare, a special assistant U.S. Attorney in Riverside who is prosecuting the case. “It was a large number of firearms that were stolen, and they were stolen from a reputable shipping company.”

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Industry News

Is FedEx’s Trouble With the Feds a Game-Changer? – Motley Fool

Essentially, the government is charging FedEx as a drug trafficker, although no specific company executives or employees have been indicted. FedEx is flatly denying any wrongdoing and is vowing to hotly contest the issue in court, unlike UPS, which paid $40 million in a settlement in a similar dispute with the feds.

What it all means for FedEx investors
If FedEx is convicted on the Justice Department’s charges, then the company would have to pony up big time. FedEx would be responsible for paying a whopping $1.6 billion fine, almost twice as much as the $820 million the feds say FedEx made off of illicit drug operations. To put this number in perspective, FedEx reported $11.6 billion of revenue and $730 million in net income in the fourth quarter of fiscal 2014.

So, if FedEx does lose its case in court, the company may take a relatively big hit in the short term, which would hurt the company’s bottom line. Investors may be spooked from the stock as well, driving down confidence in the brand.

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UPS News

What’s Behind United Parcel Service’s Billion-Dollar European Investment Plan? – Motley Fool

United Parcel Service’s CFO Kurt Koehn made a big strategic announcement this month — he told German daily newspaper Sueddeutsche Zeitung that the company will invest $1 billion in Europe over the next three to five years. Though the full details won’t be revealed until November, Koehn provided some interesting snippets. Investments will be mostly in Germany, with emphasis on developing more logistics hubs. In terms of sector specialization, health care will be the focal point.

If we look at Germany’s growth prospects and UPS’ course of action in recent times, the announcement does not surprise; here’s why.

Germany is the eurozone’s biggest economy and growth driver. With fresh investments in the region, UPS can position itself better in comparison to rivals that are equally intent on milking the German recovery. Increased focus on health care could help derive big gains. The stage is set for UPS to up the ante in Europe.