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Mike01

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Press Release

Daily Volume Up 721,000; International Profit Jumps 22%

ATLANTA, Oct. 19, 2006 - UPS (NYSE:UPS) today reported solid revenue and profit growth for its most recent quarter on a healthy 5% rise in global small package volume.

Consolidated revenue for the quarter ending Sept. 30, 2006, increased 10.5% and diluted earnings per share increased 11.6% to $0.96. The growth in small package volume translated to 721,000 additional packages each day in the UPS network.

The company also said it is taking significant steps to improve the profitability of its forwarding and logistics business, confirming it will eliminate 20% of the non-operating expense in the business unit.

"UPS is moving forward with confidence," said Chairman and CEO Mike Eskew. "Our small package business continues to show strength across all segments and we are taking the steps necessary to put our supply chain business on the right track after a disappointing performance."

Consolidated Results: Third quarter / Year-ago
Revenue: $11.66B / $10.55B
Operating profit: $1.58B / $1.50B
Average volume per day: 15.1M / 14.3M
Diluted earnings per share: $0.96 / $0.86

Read more
 
Mike01 said:
Press Release

Daily Volume Up 721,000; International Profit Jumps 22%

ATLANTA, Oct. 19, 2006 - UPS (NYSE:UPS) today reported solid revenue and profit growth for its most recent quarter on a healthy 5% rise in global small package volume.

Consolidated revenue for the quarter ending Sept. 30, 2006, increased 10.5% and diluted earnings per share increased 11.6% to $0.96. The growth in small package volume translated to 721,000 additional packages each day in the UPS network.

The company also said it is taking significant steps to improve the profitability of its forwarding and logistics business, confirming it will eliminate 20% of the non-operating expense in the business unit.

"UPS is moving forward with confidence," said Chairman and CEO Mike Eskew. "Our small package business continues to show strength across all segments and we are taking the steps necessary to put our supply chain business on the right track after a disappointing performance."

Consolidated Results: Third quarter / Year-ago
Revenue: $11.66B / $10.55B
Operating profit: $1.58B / $1.50B
Average volume per day: 15.1M / 14.3M
Diluted earnings per share: $0.96 / $0.86

Read more
Click to expand...
The Read More part:
The company reported a $19 million loss in its supply chain and freight business, caused by a loss of business and "productivity setbacks" that happened as part of its consolidation of Motor Cargo and Overnite.
 
bamaboy said:
The Read More part:
The company reported a $19 million loss in its supply chain and freight business, caused by a loss of business and "productivity setbacks" that happened as part of its consolidation of Motor Cargo and Overnite.
Click to expand...

Shall I say it. TIME WILL TELL!
 
Thanks for posting this report Mike01.

I see not much written about the Freight division,other than MC dragging down the revenue,by being merged into UPS Freight,if this is the way I'm reading it?

Nothing written about UPS cutting back on all of the national accounts Overnite used to handle?

When we were Overnite there seemed to be a lot reported at the end of each quarter.
Now that we are under the UPS blanket,they only write one small paragraph.

When we were waiting to be rebranded my co-workers,and I thought that UPS had very deep pockets to cut freight rates,and gain a lot more business?

We've been UPS freight for just into our six month .
And we find we were sadly mistaken,if anything we've lost business to higher rates.

Well UPS didn't become the leader in global transportation,not knowing what they are doing.

So like my posting friend,and brother in the Lord Skeeter always says.
TIME WILL TELL!
 
bamaboy said:
The Read More part:
The company reported a $19 million loss in its supply chain and freight business, caused by a loss of business and "productivity setbacks" that happened as part of its consolidation of Motor Cargo and Overnite.
Click to expand...
This was to be expected. Rebranding alone cost millions. As well as consolidating some of the service centers. Also the purchase of new equipment. All add up to millions. You have to spend money as well as lose some money to make money. They will make this profitable. Most take overs and start ups take three to five years to make a buck.
 
hugnlug said:
This was to be expected. Rebranding alone cost millions. As well as consolidating some of the service centers. Also the purchase of new equipment. All add up to millions. You have to spend money as well as lose some money to make money. They will make this profitable. Most take overs and start ups take three to five years to make a buck.
Click to expand...

And, if I understood the webcast correctly, the LTL section actually made a little bit of money. Most of the loss was in the Supply Chain side of it. Which is apparently being addressed, mainly by the cutting of a lot of jobs that arent needed.

Also, it sounded like the problem wasnt so much with the actual rebranding. The problem is with the LTL infrastructure and not being able to make UPS service standards. Or at least the service standands UPS wants.
 
Apostolic said:
Nothing written about UPS cutting back on all of the national accounts Overnite used to handle?
Click to expand...

Again, from the webcast, it sounded like they were cutting out a lot of the crap accounts that Overnite used to have.
 
Profits

I don't think UPS is interested in low balling other carriers on freight rates just to get more volume. Many carriers have done this only to lose their shirts and end up hurting a lot of hard working empoyees in the long run because they ended up closing down or drastically downsizing. Most of us have been in this business for quite a while and know the results of poor management decisions. The rebranding of equipment alone is a huge investment. Deep pockets and lowering rates won't do anything but put more low paying freight on your trailers. I would rather pull a load that pays well with little risk of damage, than pull a load that just pays the costs and has a huge risk on claims.
 
Skeeter said:
Shall I say it. TIME WILL TELL!
Click to expand...

This was expected I am sure , a good rule of thumb is 5 years and counting ,we are still in our 1'st year. By this time next year we will see a big change I gaurantee it. This is partially the reason why "O" did not merge "MC" into "O" at the beginning . It took FDXF within 5 years to show a strong profit, it will take us the same.... Same with USF and YRCW.
 
Mike01 said:
Again, from the webcast, it sounded like they were cutting out a lot of the crap accounts that Overnite used to have.
Click to expand...

And that is exactly what they did, BB&B was one of them!!!!!! Where are the HORSES!!!!!:bananalama: :bananalama:
 
Mike01 said:
And, if I understood the webcast correctly, the LTL section actually made a little bit of money. Most of the loss was in the Supply Chain side of it. Which is apparently being addressed, mainly by the cutting of a lot of jobs that arent needed.

Also, it sounded like the problem wasnt so much with the actual rebranding. The problem is with the LTL infrastructure and not being able to make UPS service standards. Or at least the service standands UPS wants.
Click to expand...

Hence the reason why we are hiring more drivers than we have freight for.....
 
Apostolic said:
Thanks for posting this report Mike01.

I see not much written about the Freight division,other than MC dragging down the revenue,by being merged into UPS Freight,if this is the way I'm reading it?
Click to expand...

That's not what it says, It says results were below EXPECTATIONS due to a revenue short fall related to the CONSOLIDATION of Motor Cargo.

Nowhere did it say anything about "dragging down" the revenue, the revenue came up short of thier expectations.
 
Accelerator said:
This was expected I am sure , a good rule of thumb is 5 years and counting ,we are still in our 1'st year. By this time next year we will see a big change I gaurantee it. This is partially the reason why "O" did not merge "MC" into "O" at the beginning . It took FDXF within 5 years to show a strong profit, it will take us the same.... Same with USF and YRCW.
Click to expand...
I hope to see this from my rocking horse, I mean chair!!
 
Mike01 said:
And, if I understood the webcast correctly, the LTL section actually made a little bit of money. Most of the loss was in the Supply Chain side of it. Which is apparently being addressed, mainly by the cutting of a lot of jobs that arent needed.

Also, it sounded like the problem wasnt so much with the actual rebranding. The problem is with the LTL infrastructure and not being able to make UPS service standards. Or at least the service standands UPS wants.
Click to expand...
Shocking...We can't get things there when they are supposed to be????? Well I never.....Man the way we keep track of stuff and move it I thought they would be so proud.....
 
BusterNite said:
I hope to see this from my rocking horse, I mean chair!!
Click to expand...

I have a troft full of grit's and barley and hay at my front door, I hope the kids on halloween do'nt take it.....:bananalama: :bananalama:
 
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