Author: Archive

UPS releases first quarter results

Posted by | Apr 23, 2008 | |

UPS reported increased revenue in all segments with double-digit gains in both international package and supply chain and freight operations. A sharp decline in U.S. economic activity, however, led to a 9.4pct drop in diluted earnings per share to USD 0.87 compared to a prior-year adjusted USD 0.96.

In 2007, first quarter adjusted earnings per share excluded an impairment charge related to aging jet aircraft and expenses for a voluntary separation program. Including these charges, diluted earnings per share for the first quarter of 2008 increased 11.5pct over the USD 0.78 per share reported in the prior year.

For the three months ended March 31, 2008, consolidated revenue increased 6.5pct to USD 12.7 billion while consolidated average daily volume remained flat at 15.1 million packages per day. Consolidated average revenue per piece increased 5.4pct.

“U.S. economic activity deteriorated more rapidly than expected during the quarter,” said Scott Davis, UPS chairman and CEO. “While we will be extremely vigilant with respect to costs in this difficult environment, we will not lose our focus on growing the business. We will continue to invest in the infrastructure, new products and services that will enable our customers to succeed in the global marketplace.

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Netflix moves firmly, but cautiously into more web-enabled entertainment

Posted by | Apr 23, 2008 | |

Netflix Inc. is well on its way to transitioning from a DVD rental company into an organization that will deliver subscribers Internet-based entertainment content to a variety of web-enabled devices, CEO Reed Hastings told analysts on the company’s first quarter earnings call.

Netflix, No. 18 in the Internet Retailer Top 500 Guide, announced in January a relationship with LG Electronics to develop a new device that consumers can hook up to their high-definition TVs, enabling them to use the Internet to purchase and download movies. Netflix is pursuing deals with four other unidentified consumer electronics companies, which Netflix expects to have signed and in place by the end of the year, Hastings told analysts.

With web-enabled TVs and mobile devices, subscribers can watch movies streamed from Netflix.com just as they can do now on their personal computers, says Netflix. The company has 90,000 DVD titles in its library and more than 6,000 movies and TV episodes that members can purchase and download to their computers.

Despite the deals with additional manufacturers, Netflix is cautious and will not move away too quickly from its current DVD and entertainment content business model. “Nothing about these agreements will be material to our financial results for the foreseeable future,” Hastings told analysts. “We’ll take it year by year and model by model as we and our consumer electronics partners come to understand the opportunity better.”

Netflix reported net income of USD 13.4 million on revenue of USD 326.2 million in the first quarter compared with net income of USD 9.9 million on revenue of USD 305.3 million in the prior year.

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Post office launches new Fiveyear Saver

Posted by | Apr 22, 2008 | |

The Post Office today announces the fifth issue of its Fiveyear Saver – a no risk, fixed-term deposit bond – which guarantees returns over a five year period with the benefit of further growth potential linked to the FTSE 100-Index.

The Fiveyear Saver offers a dual investment system, which is ideal for investors made cautious by the recent stock market jitters. As a result customers who take advantage of this great offer – which is open now and closes on 11 January 2008 – will see their money managed in two ways:

– Half of their deposit earns a very competitive 7.5 per cent gross/AER per annum for the five year fixed term period
– The other half benefits from a 50 per cent return on any increase in the FTSE-100 Index over the five year period. Customers’ original deposits are guaranteed should the FTSE-100 Index fall.

Post Office director of savings and investments Richard Norman said: “Although many investors are seeking to benefit from gains in the stock market, they also want a guarantee that they won’t lose their money. This is why we are pleased to announce the launch of a new five year savings bond – with an even better rate of interest.”

“Post Office Fiveyear Saver is a secure investment which gives a guaranteed return, while still offering the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just GBP 500.”

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Does a liberalized postal market need a sector specific regulator?

Posted by | Apr 22, 2008 | |

For different reasons, most actors in liberalized postal markets call for sector specific regulatory bodies. However those should disappear over time along with an increasingly market-oriented definition of universal services.

Sector specific regulation in the postal sector has rarely been questioned so far. However, with the total opening of the European market now foreseen between 2011 and 2013, and in some countries already in place, we should think again.

To recall the context, specific regulation in the postal sector is an invention of the European Community back in 1997. The regulation was a copy of what at that time had already been set up for the telecommunications sector. Indeed the Postal Directive (97/67/EC) required every member country to set up a postal regulator. The regulator’s main functions were: firstly to make sure the Universal Service Obligation (USO) and corresponding quality criteria are fulfilled; and secondly to watch on possible cross-subsidies resulting from the monopoly, which in turn was designed as a means to finance the USO.

Abolition of postal monopoly

With the new Postal Directive of the European Community (2008/6/EC), the monopoly will be abolished in 2011 with exceptions granted to some member countries in 2013. Finland, Germany, Sweden and the United Kingdom have already abolished (at least de jure) their monopoly protection, while the Netherlands delayed full market opening because of continuing barriers to entry in Germany. Outside the European Union, Switzerland might open its postal market completely to competition by 2012, while Canada thinks on deregulating outbound mail.

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Royal Mail Chairman moves to Canada role

Posted by | Apr 22, 2008 | |

Royal Mail Chairman Allan Leighton has been named President of Canada’s biggest supermarkets chain, the troubled Loblaw.

Leighton is already Deputy Chairman of Loblaw, which is locked in battle with US rival Wal-Mart for market share.

He replaces Mark Foote, who is leaving along with Chief Financial Officer William Wells.

Leighton was Chief Executive of Asda before being recruited by Loblaw in 2006.

He takes the reins at a difficult time for Loblaw, whose bottom line has suffered from the price war with Wal-Mart.

The company said the executive changes come at a ‘crucial juncture’ but added that they will bring ‘more focus and clarity in our leadership structure’.

The chain’s profit has been stagnant at best for more than two years.

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TNT Post makes promotions after regional growth

Posted by | Apr 22, 2008 | |

TNT Post has appointed Charles Neilson as Divisional Managing Director of its regional business and promoted Mark Davies to Neilson’s former role of Managing Director of TNT Post Doordrop Media.
In his new role, Neilson will be responsible for growing the number of business customers in the regions. He has worked at TNT for 14 years and is particularly experienced in strategic planning and technology.
According to TNT, its regional business has experienced impressive growth in the last 12 months: to date, TNT serves more than 1,000 SME customers and last year grew its volumes by more than 100m items.
Neilson said: “The development of the regional businesses is a tremendous success story for TNT Post and offers further expansion opportunity, particularly in the end-to-end market.
“By growing this part of the business, more and more local businesses and SMEs will be able to benefit from high quality, innovative and cost effective services for the first time ever.”
Davies will take over Neilson’s responsibilities for growing TNT’s Doordrop division, which was formerly known as Circular Distributors, in a promotion from his role as the division’s new Business Director.

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FedEx adds more solar-powered operations to facilities in California

Posted by | Apr 22, 2008 | |

FedEx Corp. announced that its operating company FedEx Freight has completed the installation of a solar-electric system in Whittier, Calif., and is nearing completion on a similar solar-powered facility in Fontana, Calif. Both systems will provide a substantial portion of the facilities’ peak energy needs.

The 282 kilowatt (kW) solar power system in Whittier has the capacity to produce over 414,000 kilowatt hours (kWh) of electricity each year, providing almost 40 percent of the facility’s annual energy needs and significantly reducing the service center’s dependence on the electric grid. The Whittier terminal employs about 500 workers and serves the East Los Angeles area.

In 2005, FedEx Express activated a 904 kW system at its Oakland, Calif., hub facility that meets up to 80 percent of that facility’s peak energy demand and produces power equivalent to that used by more than 900 homes during the daytime. At the time, the Oakland project was California’s largest corporate solar-power roof-top installation.

To complete the Whittier system, 1,445 solar panels were installed on 22,000 square feet of the facility’s roof space. BP Solar, part of the global energy major BP, manufactured the panels and served as the project developer.

FedEx and BP work together strategically to identify, develop and implement a range of solutions to increase FedEx’s security of energy supply while improving its environmental performance.

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DHL, UPS target Latin America growth

Posted by | Apr 22, 2008 | |

DHL Express and UPS plan to invest more in Latin America this year to grow their business in the region and partly compensate for the impact of the slowing US economy.

Roger Crook, CEO DHL Express International Americas, told Chilean newspaper El Mercurio that the company planned to invest about USD 70 million in Latin America during 2008 and aimed to grow about 12 pct. Plans include two new offices in Chile but he did not disclose further details of the investment.

A significant proportion is likely to go to Mexico, however, in view of DHL’s plan to spend USD 112 million there over the next five years. Crook said early last year that DHL would invest USD 80 million in the region and was aiming for 15-20 pct growth in 2007.

Meanwhile, UPS, which during 2006-07 invested USD 7 million on 15 new operation centres to extend its Mexican network to 35 locations, is opening a further eight centres in the country this year, according to Mexican newspaper El Financiero.

Rubén Medina, UPS international sales manager, told the newspaper that despite the US economic slowdown, the operator’s Mexican exports grew by 5 pctin the final quarter of 2007. UPS will also aim to win more business among manufacturing companies along the Mexican border and SMEs this year, he added.

Mexico is the largest market in Latin America for UPS which has five daily flights from Mexico City to five different US airports. UPS has invested USD 39 million in Mexico since launching operations there in 1989, the newspaper said.

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