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AAA Cooper | AACT Sold??

Eagles fan said:
The biggest reason ups freight wasn't profitable is because ups bundle freight and package pricing together...they would move a customer freight at a lost because of the profit they made off of the customers packages
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Finally a true statement! If you read what the CEO said after the sale...she said ups freight finally has someone that wants them!! They put zero money into running the place!
 
Jeff said:
They may have not known how but they could have surely bought the knowledge if they wanted too. LTL is not a high margin business when you think about the fact that most LTL's that operate at 95 are usually happy. UPS package only has to compete with a handful of companies, in the LTL business you have to compete with many and it's a cut throat business.
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UPS bought Overnite at the time wanting to offer a complete portfolio of transportation options for customers. There's a UPS computer and access at practically every company and business that does any type of shipping large or small. They were thinking that customers would simply click on UPS freight for the large shipments ,but customers are more cost conscious than that.
 
seabreeze said:
With the money UPS makes, they know how to do something right!
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I work at UPS, and trust me, they make money in spite of themselves. Some much waste at that place it’s ridiculous. I was on a 6000 mile sleeper for about 4 months last year. We would pull 4000 miles and 3 or 4 stops with the same empty trailer. It was actually kinda funny after a while.
 
rugrunner said:
I’m thinking Pitt-Ohio, they own Dorhn’s and ross and just sold ECM to Werner
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On the Pitt thread they said the money from their portion of the ECM sell would let them finish paying off what the still owe the Dohrn family. It would also let them buy the balance of Ross or most of it. That would make them an attractive buy
 
Jeff said:
that's just a small tax write off for UPS
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Ups bought overnite to have a ltl to bundle volume discounts with ups small pack . They made terrible deals on ups freight behalf to make large profits on ups small pack side . Also when they let ups freight go union ibt let ups buy out of Central states pension saving them billions in the long run . So end game was not to make money on freight just package side .
 
Overnitemike said:
Ups bought overnite to have a ltl to bundle volume discounts with ups small pack . They made terrible deals on ups freight behalf to make large profits on ups small pack side . Also when they let ups freight go union ibt let ups buy out of Central states pension saving them billions in the long run . So end game was not to make money on freight just package side .
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UPS also thought when they entered the LTL sector the industry would bow to them and welcome the Big Brown Monster with open arms. It didn't. When the little Brown truck pulls up. everyone runs toward it, when the big Brown truck came up, you were just next in line and they couldn't comprehend that. They were stuck on their "by the numbers" mentality, which worked in package but not in freight, too many variables.
They made money no doubt, the pension buyout, the added package freight. They bled the Terminals dry with payments to UPS personnel, UPS leasing for the equipment, UPS property for the facilities, UPS Technology and supplies, etc. They failed to maintain or update anything unless absolutely necessary and beat down the workers till the morale was lower than snake :crap: .
They rewrote the book on how not to operate a trucking company.
 
TDM7075 said:
40 million in dept
1.3 billion in cash
10 million Knight-swift shares
Per WSJ
For AAA Cooper
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I think Jeff was talking about price Fed Ex paid for American Freightways, not AAA. The total price for AF was $1.2 billion with cash paid of roughly $950 million and they took on AF’s debt of $250 million.
 
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