Author: Archive

UPS volume no longer seen as long-term gauge

Posted by | Jan 10, 2008 | |

UPS’s shipping volumes used to be a good indicator of how the economy would be doing down the road — but no longer thanks to changes in how its business customers operate, the package shipper’s top executive said Wednesday.

D. Scott Davis, who became CEO and chairman of the package shipper on Jan. 1, told attendees of a Metro Atlanta Chamber of Commerce breakfast that fluctuations in the company’s fortunes once foreshadowed the economy’s direction.

But its volume has become more of a real-time indicator in recent years as many retailers and other shippers have switched to so-called “just-in-time” operations to reduce their inventory levels, said Davis, who is also vice chairman of the Federal Reserve Bank of Atlanta.

Davis declined to disclose recent trends in UPS’ shipments, but said the risk of a recession has increased after retail sales growth over the Christmas shopping season dropped to its slowest rate since 2002. UPS will report its fourth-quarter financial results at the end of this month.

Separately, UPS said Wednesday it will repurchase up to USD 10 billion in company stock within the next two years, and it has decided it will take on greater debt to allow it to make more investments in its business.

UPS said its board of directors has authorized an immediate increase in the amount of funds available for stock repurchases from roughly USD 2 billion to USD 10 billion. It added that the repurchases may take the form of an accelerated share repurchase program, open market purchases or other unspecified methods.

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UPS rises on upgrade to 'Outperform'

Posted by | Jan 10, 2008 | |

Shares of United Parcel Service Inc. rose last Thursday 09 January after a Bear Stearns analyst upgraded the stock, citing a slew of catalysts for long-term growth including current troubles at rival FedEx Corp.

Analyst Edward Wolfe raised his rating on UPS to “Outperform” from “Peer Perform,” saying the company is well positioned to grow once the domestic economy begins to improve.

He expects the company to steer guidance lower in the next few quarters as domestic freight demand remains weak and pricing stays competitive. But a settled Teamster contact, changes in senior management, and rival FedEx Corp. ‘s ground unit woes should all benefit UPS in the long-term, Wolfe said.

The company signed a five-year contract with the Teamster union in late November. In December, former Vice Chairman and Chief Financial Officer Scott Davis took the reigns as chairman and chief executive, replacing retiring Mike Eskew.

The company also announced a change to the top post of its Asia Pacific unit Tuesday, in which Ken Torok will be replaced by Senior Vice President Derek Woodward.

Wolfe said FedEx should continue to lose business to UPS as troubles at its ground unit could lead to higher costs and slower growth. He reduced his 2009 earnings expectations for FedEx Corp. by about 5 percent, but left his 2008 expectation unchanged.

Shares of UPS rose USD 2.76, or 4.1 percent, to USD 69.47 in midday trading, while FedEx shares gained USD 1.40 to USD 84.14.

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Millions of people more reliant on credit in the new year than in 2007

Posted by | Jan 10, 2008 | |

New research from the Post Office® reveals that one in four credit card holders will be starting the New Year more dependent on credit than in 2007, with 41 per cent intending to rely on their credit card for day to day living costs such as grocery shopping.

The Post Office® is advising anyone relying on credit to ensure they get the best possible deal so they don’t end up over-paying for money borrowed on credit cards.

The research also revealed that half of card holders said they intend to use their credit card in the January sales and almost a third (28 per cent) said they plan to make bigger purchases on holidays.

With a huge 53 per cent of people not paying their credit card off in full each month, the Post Office® is urging borrowers to use the New Year as an opportunity to check all aspects of their finances – particularly the rate they are paying on their credit card.

As well as no overseas commission charges, the Post Office® credit card also has zero per cent on balance transfers for the first 10 months and zero per cent on purchases for the first three months. In addition, it offers zero per cent again on new balance transfers made during the month of the cardholder’s first and second anniversary.

Even after the promotional periods, the Post Office® credit card still offers a competitive interest rate of 15.9 per cent APR typical (variable).

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ColiPoste launches e-stamping for parcels (FRA)

Posted by | Jan 10, 2008 | |

Coliposte, La Poste’s parcel branch, launched a new stamping method for its parcel product “Colissimo” by introducing e-stamping via Internet to private customers.

The customer can fill in his shipping bill and indicate the weight, destination and shipping method of his parcel before paying with a credit card. After that the customer can print the bill on a A4 sheet, one part of which will be attached to the package and the other one stamped by the dispatching clerk.

The online stamping of the parcels that is available at the same price as stamping of a classical parcel from a post office does not generate any extra costs for the customer. Currently available and recommended for domestic shipments, the e-stamping service will also be available for international shipments and the French overseas departments in a few months, ColiPoste said in a statement.

Parcel flows among private customers, boosted by the growing number of online retailers, have grown like never before in recent years, the company pointed out. ColiPoste has already adapted to this trend by simplifying the tracking and delivery of the shipments, especially with its service “ e-como” which enables the customer to trace the route of his shipment and “Cityssimo”, its 24/7 delivery service.

Online stamping saves time and thus meets the needs of private customers whose number is increasing rapidly when it comes to selling or exchanging their belongings online. ColiPoste handles one million shipments every day and is registering an annual 10 pct increase in its C2C operations which is generated by the boom of retail sites among private customers.

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TNT France tests biofuel

Posted by | Jan 10, 2008 | |

TNT Express France is testing a biofuel for its delivery vehicles to cut down on CO2 emissions. The fuel – known as B30 – could be introduced nationwide if tests are successful.

TNT Express launched the B30 biofuel tests in September 2007at its depot at Maxvill, where its Eastern Region main office is situated. The tests were extended to eight light-duty pick-up and delivery vehicles last month.

The study, which will last at Maxville for six months, will enable TNT to evaluate if this solution is feasible at an operational level and to assess the financial impact (carbon consumption and maintenance costs). The tests will also examine the performance of the vehicles with this type of fuel, especially as an alternative to diesel.

The first results are already promising for lorries as well as for light-duty vehicles, TNT pointed out. If the final results turn out to be positive, TNT Express France could decide to deploy B30 in its 13 operational centres across France this year.

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PIN Group attracting interest from CVC Capital, postal companies – report

Posted by | Jan 10, 2008 | |

PIN Group has attracted interest from French, Austrian and Swiss postal services companies as well as from buyout firm CVC Capital, Handelsblatt said, citing unnamed consultants.

The sources said CVC, La Poste of France, Austria Post and Suisse Post have contacted Axel Springer AG, PIN Group’s majority shareholder, the paper reported, adding that an Axel Springer spokeswoman declined to comment.

La Poste of France and Austria Post said they were not interested in PIN Group, Handelsblatt said.

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Postcomm publishes decision document on its interim review of 2006-10 Price Control (UK)

Posted by | Jan 10, 2008 | |

Postcomm has published a decision document confirming its proposals made in August 2007 that Royal Mail should be given extra flexibility to increase some retail prices and that access margins should be left unchanged.

These decisions are in response to the requests by Royal Mail, TNT Post and UK Mail for a review of some aspects of the 2006-10 Price Control.

As set out in Postcomm’s proposals document published in August, this decision would allow Royal Mail to raise the price of a second class stamp to 29p by 2010, subject to inflation (the original price cap was 26p). The price cap on a first class stamp will not be affected by this decision2.

In addition, Postcomm has decided to reject the requests from Royal Mail, TNT Post and UK Mail to change the margin between Royal Mail’s prices for bulk mail products and the amount Royal Mail charges other mail operators for access to its network and delivery of bulk mail over the ‘final mile’. Royal Mail had wanted to reduce the margin and the two Access operators argued that it should be increased.

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PIN Group attracting interest from CVC Capital

Posted by | Jan 10, 2008 | |

PIN Group, the troubled German mail delivery company that has put itself up for sale, has attracted interest from French, Austrian and Swiss postal services companies as well as from buyout firm CVC Capital, Handelsblatt said, citing unnamed consultants.

The sources said CVC, La Poste of France, Osterreichische Post and Suisse Post have contacted Axel Springer AG, PIN Group’s majority shareholder, the paper reported, adding that an Axel Springer spokeswoman declined to comment.

La Poste of France and Oesterreichische Post said they were not interested in PIN Group, Handelsblatt said.

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