TForce | UPS 2006 1st Quarter Shows Strong Gain in Earnings

[Mike01]

Revenue Rises 16.5%; Excellent Cash Flow

ATLANTA, April 20, 2006 - UPS (NYSE:UPS) today reported earnings per diluted share of $0.89, up 14.1% over the prior year. Results were driven by a 9% increase in global small package volume or 1.24 million packages per day, outpacing worldwide market growth.

The consolidated results for the period included:

Revenue grew 16.5% to $11.5 billion.

Operating profit increased 12.3% to $1.6 billion.

Net income increased 10.5% to $975 million.

Free cash flow improved to $1.9 billion.

Solid fundamentals are delivering healthy cash flow. Free cash was used to buy back more than 11 million shares in an on-going repurchase program. Dividends were increased by 15% and are up 81% over the last three years.

"This was a quarter of outstanding growth that resulted in strong returns and excellent cash flow," said Mike Eskew, UPS chairman and CEO. "To drive future results, we will continue to invest in our network, technology and products to bring even more value to the customer."

Read more

 

[hugnlug]

Guess We Were A Good Buy

Freight forwarding and logistics operating profit was impacted by increased expenses and lost revenue due to the integration of the former Menlo Worldwide Forwarding unit. However, these results were somewhat offset by solid less-than-truckload revenue and shipment growth in the ground freight operations.

Damn straight!! UPSF will post there first of many record setting quarters, 2nd quarter. It's only up from here. It will be interesting to see what happens to Cartage Services, if they can't turn a profit. Right now, CSI is closing down the Dayton air hub and moving the hub to Louisville. I know the CSI guy that peddles up in my area, sometimes leaves his barn with no freight and comes back with a couple of small pick-ups. Who knows, just like ground packages with air packages on the same package car, could there be eventually air freight and ground freight on the same trailer?

 

[falcon465]

If UPS has learned anything from FedEx's screw ups........they will keep everything as simple as they can. Customers are so confused on who they are getting bills from when they deal with FedEx. I was told that eventually everything you deal with UPS will be recieved with one bill....

 

[imported_Silverhawk1]

If UPS has learned anything from FedEx's screw ups........they will keep everything as simple as they can. Customers are so confused on who they are getting bills from when they deal with FedEx. I was told that eventually everything you deal with UPS will be recieved with one bill....

I have customers that really complain when they have to separate there air and ground shipments and two different FedEx trucks show up.

 

[Teamster251]

I have customers that really complain when they have to separate there air and ground shipments and two different FedEx trucks show up.

Don't think for one minute that you will be picking up UPS air or ground shipments.

It will not happen.

Overnite is uncapable of delivering either type of shipment and meeting the service standards required by it's customers

You Onite people need to stick with your palletized freight and figure out how to handle that stuff first in an effiecint and timely manner. UPS will straighten your company out so you can operate the way UPS wants and make them money.
You will not be picking up UPS packages, air or ground, period.

I assume you don't know the logositics involved and the reasoning behind sperate companies. Service standards would suffer greatly if one comapny tried to do it all.

Again you will never pick up a UPS Air or ground package from any customer, ever.
Best get that out of your mind first. FedEx has thre seperate comapnies suppling three seperate services. If they tried and do it on one truck they would choke. Think outside the box, peek out from behind that liitle curtain you call your life and visualize the rest of the world.
Can Onite handle 14.4 million packages a day and deliver them all over the world and meet service requirement the customers expect?
Can 14,000 freight haulers do the job of nearly 407,000 UPS employees worldwide?

Stick to your own liitle world, UPS is going to show you how to run your litttle company and run your little lives.

Later T251

 

[imported_Silverhawk1]

T251 you have total misunderstood me. I was simple stating that FedEx is really making customers unhappy because they had to have two small package cars pickup there ground or air shipments separately. instead of having only one do them both. UPS dose both types with one truck now. and I do think it is a great idea if UPS bills the customer once for the services performed by UPS or UPSF.
You don't have to get so defensive either, and I don't need a lesson from you on the logistics of your UPS or UPGF [aka] UPS Freight. I have been in this business for 20 plus years as well. and I know how the freight business works.

The whole purpose of UPS Freight is to make sure that if it doesn't fit on and little brown truck then they want it to go on a big brown truck. and not the competitions big truck. and that is the bottom line.

Like it or not this is going to be a team effort. and one that I take pride in every day. I respect your right to be represented by the teamsters and I would hope that you also respect my right to want to remain non-union.

 

[accelerator]

Don't think for one minute that you will be picking up UPS air or ground shipments.

It will not happen.

Overnite is uncapable of delivering either type of shipment and meeting the service standards required by it's customers

You Onite people need to stick with your palletized freight and figure out how to handle that stuff first in an effiecint and timely manner. UPS will straighten your company out so you can operate the way UPS wants and make them money.
You will not be picking up UPS packages, air or ground, period.

I assume you don't know the logositics involved and the reasoning behind sperate companies. Service standards would suffer greatly if one comapny tried to do it all.

Again you will never pick up a UPS Air or ground package from any customer, ever.
Best get that out of your mind first. FedEx has thre seperate comapnies suppling three seperate services. If they tried and do it on one truck they would choke. Think outside the box, peek out from behind that liitle curtain you call your life and visualize the rest of the world.
Can Onite handle 14.4 million packages a day and deliver them all over the world and meet service requirement the customers expect?
Can 14,000 freight haulers do the job of nearly 407,000 UPS employees worldwide?

Stick to your own liitle world, UPS is going to show you how to run your litttle company and run your little lives.

Later T251

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

My new avatar and jobclass will be unveiled on May 1'st.

 

[Skeeter]

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

You have to excuse teamster251 he is a little paranoid. We will be working close together. If he thinks we will never haul any of his precious parcels he is the one living in a dream world. By the way how many parcels does it take to make a skid. lol!

Our top sales is already working close with UPS sales. Going to be interesting.

 

[falcon465]

I'd say it'll be real interesting. I don't ever see us moving parcels.....but the logistical part of it is on pallets and we do have a network that will be up too speed with that. If it goes on an airplane it'll be delivered by a truck. Our little minds won't be the ones making the decisions anyway.......let's sit back and watch.

 

[Teamster251]

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

My new avatar and jobclass will be unveiled on May 1'st.

Not if it's on the ground and a three or four day route.

One could assume it's rated as three/four day freight and not air freight.
If someone is shipping and paying for air freight and it's taking three or four days something is wrong don't ya think.

Just becuase it's Menlo doesn't mean its Air. They've done ground in the past. They specialized in Air freight but are diverse and do other things, alway have.

 

[hugnlug]

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

You have to excuse teamster251 he is a little paranoid. We will be working close together. If he thinks we will never haul any of his precious parcels he is the one living in a dream world. By the way how many parcels does it take to make a skid. lol!

Our top sales is already working close with UPS sales. Going to be interesting.

Hey skeeter, I had a skidded shipment today from LA, CA. Took 4 days and had 7 ctns on it and weighed 160lbs. The receiver said it use to come UPS ground and took 7 days. Is this our fault? NO!!! It is our new parent's sales force who is switching to the pallet. They have quota's to attain too. Believe me, I haul enough crap now. I don't need to be delivering extra stops. But I don't have a choice either. I'm going down horse and buggy streets that a 48' van shouldn't be on too. I think all UPS package drivers should be asking there SCM's and BA's, why is this happening? I'd love to here the BS excuse they are fed.

 

[Teamster251]

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

You have to excuse teamster251 he is a little paranoid. We will be working close together. If he thinks we will never haul any of his precious parcels he is the one living in a dream world. By the way how many parcels does it take to make a skid. lol!

Our top sales is already working close with UPS sales. Going to be interesting.

Skeeter, you are the one that's dreaming.
What do you think they are going to do shrink wrap a whole bunch of packages together and call it freight. Put a skid with 100 different destinations on it on a freight truck and except it it make service?
Never happen, service would be destroyed.

The magic is lost if each and every package is not scanned.

UPS prides itself on being able to tell its customer exactly where it packages are at any given moment. And within 10 feet once it on the package car.

Think of the time it would take to scan every package at every location if its wrapped on a skid. Logically impossible, service for that one skid would take days instead of minutes or hours when package is loose.
Unless you've been in a UPS hub and seen how fast and the volume of packages moved thru a hub on any give day you have know idea what you are talking about.


As far as working close together the only thing we will have in come is the sheild on our paychecks.
You guys are a freight company not a package company.

Also, of course your sales are working with UPS sales, they are learning how to sell freight lanes the UPS way.

Just make sure you bow down and kiss the Brown everyday you go to work, rememnber they saved your sorry company.

 

[dvr49]

251 you need a chill pill!! Does UPS have an anger managment course??? your blood pressure is going to skyrocket.maybe you should look at the wed site smashpackages.com it's great, I love the way they stage the packages for loading in the P-cars. read the fourms too.

 

[Teamster251]

251 you need a chill pill!! Does UPS have an anger managment course??? your blood pressure is going to skyrocket.maybe you should look at the wed site smashpackages.com it's great, I love the way they stage the packages for loading in the P-cars. read the fourms too.

Been there do that.

What makes you think I need a chill pill.
Is my writting so flambouant that you can see me flinging my arms in the air, pacing back and forth, and spitting while I'm yelling (typing).

Where do you see me flying off at the handle and reacting as such that I need High Blood Pressure meds.

Where and when have I acted like I was angry, hence the anger management statement.
Maybe I'm a by product of just under two years with Brown or maybe its just a by product of this board and the generalizations and here-says and falsehoods that are pertrayed constantly.

Show me where I've called any one names or belittled them of forced uniionization on them. I've never slighted anyone for being nonunion. Never called them wrong.

What I have done constantly on this board since Sept '02 is correct the falsehoods and prove to individauls the streotypical ideals that are out there are wrong.

I never forced or used salesman like tactics towards anyone. I've never called anyone wrong and never belittled anyone. On the other hand I've taken the abuse and name calling but if I turn around and come back at anyone I'm the raving lunatic.

I've given more info on the union and it benifits than anyone on this board of a non-union status is willing to give up about their benifits.

Everything's a secert with you guys. I shared all I have to share and provide links or prove the falsehoods wrong.

To be honest with you I could care less rather Onite goes union or not. I not here to organize you or anyone for that matter. I do however have a sence of pride in the fact that I'm a Teamster and defend that pride here. The garbage that gets spewed here reaks of management teachings.

The stronger the union gets the better off we all are. This is a cutthroat industry and sticking together will only make it better.
UPS's purchase of Onite is a blatent divide and conquer tactic. Fighting back against UPS and corporate business is the only way this indusrty is going to be able to continue to provide decent jobs.

Onite would be only a 1% gain in union membership but it can also be the beginning of a trend to increase the union's ranks.
Strenght in numbers is where it at. Unity just isn't some fancy word.

I got to go now my heart palertations are kicking up now and my girl says it effects my performance. I've lost all my hair since joining this board and it turns gray before it hits the floor. Before long I'll probally need viagra because my beta blockers for my high blood pressure will make me limp.

See you all this weekend
T251

 

[CFer]

We have been through this before, Onite is already hauling 3-4 day routes for menlo. Is this not air?????.

My new avatar and jobclass will be unveiled on May 1'st.

Accelerator, The Menlo freight that Overnite is hauling is probably from Menlo Logistics. They use many different companies to haul their freight

 

[imported_bigdaddy]

You know teamster 251 with the way you come off towards Overnite its almost like you just need a place to vent about whats going with us becoming a part of the UPS family, its pretty obvious that there is some animosity towards us and quite frankly your brash attitude towards overnite employees(for 6 days) is beginning to wear on the UPSF forum , if you ask me your not doing a good job representing the teamsters that you are so proud of, with the attitude that is

 

[CFer]

You have to excuse teamster251 he is a little paranoid. We will be working close together. If he thinks we will never haul any of his precious parcels he is the one living in a dream world. By the way how many parcels does it take to make a skid. lol!

Our top sales is already working close with UPS sales. Going to be interesting.

I agree with 251 Skeeter. In my opinion, you are not gonna see much difference in the freight mix. There may be freight that ends up on pallets but I'm sure there will also be freight that ends up loose.

All UPS is going to be able to do is offer different services to customers.
The customer is gonna be the one that decides who gets the freight and their decision is gonna be based on price and service.

Nothing is guaranteed in this business and that goes for packages being put on pallets too.

Only time will tell

 

[CFer]

I'd say it'll be real interesting. I don't ever see us moving parcels.....but the logistical part of it is on pallets and we do have a network that will be up too speed with that. If it goes on an airplane it'll be delivered by a truck. Our little minds won't be the ones making the decisions anyway.......let's sit back and watch.

Falcon, there is one thing I think a lot of people don't understand about logistics companies.
Just because a logistics company and an LTL are owned by the same company it does not mean the LTL business will be getting the freight.
Of course they will be getting some of it but don't expect a great increase just because they are sister companies.
The job of a logistics company is to provide the best transportation services at the lowest prices to their customers. UPS Freight will not be able to provide both for all customers.

 

[CFer]

Hey skeeter, I had a skidded shipment today from LA, CA. Took 4 days and had 7 ctns on it and weighed 160lbs. The receiver said it use to come UPS ground and took 7 days. Is this our fault? NO!!! It is our new parent's sales force who is switching to the pallet. They have quota's to attain too. Believe me, I haul enough crap now. I don't need to be delivering extra stops. But I don't have a choice either. I'm going down horse and buggy streets that a 48' van shouldn't be on too. I think all UPS package drivers should be asking there SCM's and BA's, why is this happening? I'd love to here the BS excuse they are fed.

hugnlug, the big question is, how much money was made with a 160 lb pallet?

Without getting into all the different freight classifications(which I fully understand), A 160 LB pallet does not pay much in the LTL world. Thats why freight companies always prefer heavier freight and leave the lighter stuff for the other guys

 

[hugnlug]

hugnlug, the big question is, how much money was made with a 160 lb pallet?

Without getting into all the different freight classifications(which I fully understand), A 160 LB pallet does not pay much in the LTL world. Thats why freight companies always prefer heavier freight and leave the lighter stuff for the other guys

To be honest, I have no clue. It was prepaid. As you are also aware, many consignees pick up the freight cost before its even shipped. Onething that is starting to be apparent is that cost and service means little to customers who want it quickly. If UPSF can control the damages, they will quickly gain a lot of the freight. Another thought is a company I pick up. I pick up 15 to 25 bills at this company. Some of the shipments weigh in at over 5000 lbs., others at 20 lbs=parts. As you know in this business, we haul it all. And the discount is the key.