Integrator shares rocked by financial sector turbulence
Shares of Deutsche Post World Net, TNT, UPS and FedEx have been hit dramatically in recent weeks by the turbulence in world financial markets but also by clear signs of a slowdown in the international express business. The outlook for the forthcoming weeks and months remains uncertain.
Since the start of September, TNT shares have fallen nearly 40pct, DPWN shares have dropped 37pct, FedEx shares are down 20pct and UPS has declined 19.5pct, according to CEP-Research analysis. Since the start of 2008, DPWN is down 57pct, TNT is down 44.9pct, UPS has fallen 25.3pct and FedEx has dropped 23.1pct.
“Integrator shares have clearly been impacted by the general slump on the world stock exchanges. But investors also appear nervous about how the economic slowdown will affect the express and parcel sector,” commented Mark Winkelmann, managing partner of ITA Consulting, the CEP-Research parent company. “There are certainly widespread indications of customers downtrading from expensive air express services to cheaper and slower economy products. It is unclear however whether this is a short-term or a longer-term trend.”
TNT, with a 2008 high of €27.92, slumped over 13pct yesterday to close at €15.38 following a trading statement in which it announced a 10pct drop in premium air express volumes, forecast a further decline in the fourth quarter and scaled back the outlook for its express business this year.
The Dutch group already saw its share price drop by 23.5pct from August 29 (€25.50) to September 30 (€19.50). Its stock price slumped by 39.7pct between August 29 and October 16, and is down 44.9pct since the start of the year (January 2).
Deutsche Post World Net, whose 2008 high was €24.18, suffered a 14.1pct drop to €9.98 yesterday with traders pointing to the TNT statement as negatively impacting on the stock. Its share price had dropped 6.7pct between August 29 (€15.85) and September 30 (€14.78). The DPWN share price has slumped by 37pct between August 29 and October 16 and is down by 57pct since the start of 2008.
The two US giants, UPS and FedEx, whose stocks were already hit earlier this year by the slowing US economy and soaring fuel prices in the first half of 2008, have also seen their share prices fall in recent weeks.
UPS closed up 0.66pct at $51.64 yesterday. Its share price had declined 1.9pct between August 29 ($64.12) and September 30 ($62.89). The UPS share, with a year high of $74.73, dropped by 19.5pct between August 29 and October 16, and by 25.3pct since the start of the year.
FedEx shares were up 1.5pct at €66.24 yesterday. Its stock declined 4.6pct between August 29 ($82.82) and September 30 ($79.04), and slumped by 20pct between August 29 and October 16. FedEx, with a year high of $98.65, is down 23.1pct since January 2, 2008.
