viperdriver

UPS quarterly report. Sounds like some good news to me. Air traffic only down 0.7% dom and 1 % internationally. And I am a FedEx guy. Anyone smart on accounting know if that decrease is compared to last quarter or to a year ago?




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UPS 1Q profit plunges more than 55 pct. - Yahoo! Finance

UPS 1Q profit plunges more than 55 pct.
UPS Inc. says first-quarter profit plunged more than 55 percent as revenue dropped
Harry R. Weber, AP Business Writer
Thursday April 23, 2009, 8:54 am EDT

ATLANTA (AP) -- UPS Inc., the world's largest shipping carrier, said Thursday first-quarter profit plunged as fewer people sent packages and used premium services like next-day air amid the weak U.S. and global economy.

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UPS 54.75 0.00

UPS earnings fell more than 55 percent to $401 million as revenue dropped more than 13 percent, compared to profit of $906 million a year ago.

The results missed Wall Street expectations, and UPS provided an outlook for second-quarter earnings that was below analysts expectations.

The January-March profit was 40 cents a share, compared to year-ago earnings of 87 cents a share.

Revenue in the quarter was $10.94 billion, versus $12.68 billion a year ago.

Adjusted earnings were 52 cents a share. Analysts polled by Thomson Reuters, on average, expected UPS to earn 56 cents per share on revenue of $11.4 billion for the first quarter. Analysts generally exclude one-time items from their estimates.

For the three months ended March 31, consolidated average daily volume totaled 14.5 million packages, a 3.9 percent decline compared to a year ago. Average revenue per piece decreased 6.9 percent, reflecting changes in product mix, declining fuel surcharges and weight per package and the negative impact of currency.

The company's international segment was affected in the quarter as well, posting a 1 percent volume decline with some benefit from the timing of Easter. The 15.3 percent decline in revenue per piece reflected similar negative trends as in the U.S. small package operation as well as the negative impact of currency, UPS said.

UPS said that the second quarter will be difficult. The company expects earnings per share in a range of 45 cents to 55 cents. Analysts were expecting second-quarter earnings of 65 cents.

"Economic indicators tell us recovery in the U.S. might begin late this year, but more likely not until 2010," Kuehn said in a statement.

In premarket trading UPS shares fell 92 cents to $53.83.

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Looks like the DC-8s days are indeed numbered...

UPDATE 1-UPS profit falls as global downturn hits revenue | Markets | Markets News | Reuters

CHICAGO, April 23 (Reuters) - U.S. economic bellwether United Parcel Service Inc (UPS.N) reported lower-than-expected quarterly earnings on Thursday, saying the global downturn had taken a bite out of revenue and profitability as fewer businesses and consumers sent packages.

The world's largest package delivery company reported first-quarter net income of $401 million, or 40 cents a share, compared with $906 million, or 87 cents a share, a year earlier.

Excluding an impairment charge for the early retirement of the company's fleet of DC-8 jets, UPS earned 52 cents per share in the quarter.

Analysts on average had expected earnings of 56 cents a share, according to Reuters Estimates.

Atlanta-based UPS said revenue fell to $10.94 billion from $12.68 billion. Analysts had expected $11.42 billion.

Like Memphis-based rival FedEx Corp (FDX.N), UPS has seen its U.S. and international business hit by the global recession. Last month, FedEx reported a 75 percent decrease in quarterly net profit.

Both companies are considered bellwethers because in a boom consumers ship more packages, but when the economy cools shipments wane.

In premarket trade, UPS shares were down more than 3 percent at $53.00 (Reporting by Nick Carey, editing by John Wallace)

UPSFO4LIFE

Well, considering what is going on in todays world, not so bad. Yes, compair it to last year at this time and it looks bad, but correct me if I am wrong, but we are still very profitable in a horrible economy.

Night_Hawk

"UPS earnings fell more than 55 percent to $401 million as revenue dropped more than 13 percent, compared to profit of $906 million a year ago."

Am i wrong in thinking it is good we made 401 million compared to the 4th quarter where we only made 250 million?

UPSFO4LIFE

Depends on who you talk to. UPS will say the sky is falling. They see what they made this time last year and see it as a loss of 505 Million. If we are in fact, close to the bottom and UPS can still make 400 Million, I think the future is very bright for UPS.

BASCO

So this is my first post, but has any airline ever furloughed pilots when they were profitable, or is UPS going to lead the way?

Waborita

UPS will be leading the way for sure and the management will be rewarded handsomely in their bonuses.

UPS is parking all DC8's by the end of May 2009. That leaves 270 pilots with no where to go. Money isn't the issue airframes and block hours are the issue. Because age 65 law now UPS will only spit out approximately 50 retirements a year for the next 4-5 years. With those numbers a furlough is going to happen at UPS.

I suspect UPS will reject our Unions (IPA) voluntary programs to prevent a furlough sometime today or tomorrow after 5pm Eastern time

greekpilot

That might be to 4Q 2008, signifying a bottoming of the cargo air traffic which is good news