Tag: Courier/Express/Parcels

UPS & FedEx decline points to continuing recession (U.S)

Posted by | Apr 24, 2008 | |

Falling shipments at United Parcel Service Inc. and FedEx Corp., which together deliver 80 percent of packages in the U.S., show the economy is in a recession and unlikely to rebound this year.

UPS, whose domestic volume has outperformed the gross domestic product for almost a century until last year, said April 8 that deliveries dropped in the first quarter. UPS also said earnings for the three months through March will miss its previous projection by as much as 7.4 percent, just the third time the Atlanta-based company has made a new forecast that was below an earlier one.

FedEx’s U.S. shipments dropped 2 percent last quarter, and the company said last month it would have “limited earnings growth” this year because of the slowing economy. Both companies are also struggling with soaring jet-fuel, gasoline and diesel costs after crude oil surged 80 percent in the past year. to be.”

UPS Chief Financial Officer Kurt Kuehn said at a March 12 investor presentation that 2008 will be “challenging” because of the cooling economy and that the “downside risks have increased” for volumes.

FedEx’s profit for the fourth quarter ending May 31 may drop 14 percent to USD 525.1 million, according to the average of five estimates in a Bloomberg survey. Chief Financial Officer Alan Graf said last month that lower demand for express shipments in the U.S. will continue into fiscal 2009.

The volume decreases for the two shippers confirms “the outlook that we are projecting for the rest of 2008 as being very bleak,” said Satish Jindel, president of SJ Consulting Group Inc. in Sewickley, Pennsylvania, whose clients have included UPS and FedEx.

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Canada Post and FedEx Express Canada set to launch new International Express Service

Posted by | Apr 23, 2008 | |

Canada Post Corporation and FedEx Express Canada have combined forces in the development of Priority Worldwide, a new international express service that will be sold in Canada through Canada Post’s retail and commercial networks and delivered worldwide through the extensive FedEx international delivery network. Priority Worldwide will be available to customers in the fall of 2008.

Priority Worldwide will offer an on-time, money-back guarantee and delivery standards of next business day by noon to most USA destinations and 2-3 business days to most of the remaining industrialized world. Other key features of Priority Worldwide include tracking, delivery confirmation and signature upon delivery.

Moya Greene, President and CEO of Canada Post said, “Globally, postal administrations and express companies are working together to improve service to their customers. This relationship with FedEx, a world class company, is not only consistent with that trend, it improves our offering to customers, strengthens our business and enhances our brand.”

“FedEx is making it easier for Canada Post’s customers to grow their businesses in a global marketplace,” said David Binks, President of FedEx Express Canada. “FedEx is pleased to be working with Canada Post and the collaboration allows postal users the opportunity and the ability to expand in the more than 220 countries and territories that our network supports.”

Canadian shippers will be able to use Priority Worldwide to send envelopes up to 500 grams, paks up to 1.5 kg and parcels up to 30 kg around the world with the full confidence that Canada Post, Canada’s most trusted federal institution, and FedEx, a trusted international express transportation company, are behind it.

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Rentokil chief delivers City Link blow

Posted by | Apr 23, 2008 | |

Rentokil Initial’s new chief executive has warned that its troublesome City Link parcel delivery business will make a “significant” loss this year and that turning round the rat-catching group is a three- to five-year job.

Alan Brown, one of the trio of ex-ICI managers appointed last month to run the business after the ousting of chief executive Doug Flynn, denied that just three weeks after joining he was “kitchen-sinking” City Link. “It would have come up whoever was running this business,” he said.

Having previously said City Link “may not trade better than break even for 2008”, Rentokil warned: “It now appears likely that the division will incur a significant full-year loss.”

Operating losses at City Link totalled GBP 16.9m in the first quarter, including GBP 10m of non-recurring costs for compensating customers and replacing management.

Analysts cut operating profit forecasts for the group from around GBP 246m to GBP 198m. Rentokil is believed to expect City Link to lose GBP 38m-GBP 40m this year. Even so, the shares rose 2½ to 97½p after Mr Brown gave what one analyst described as a “brutally honest” assessment of the problems at City Link – whose two profits warnings triggered Mr Flynn’s departure.

Mr Brown, who has ruled out breaking up Rentokil, can make more than GBP 30m if he can lift the shares to GBP 280m in three years.

He said the turnaround was “a three- to five-year programme. I’ve seen worse. Unilever China was worse than this.”

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German publisher Madsack buys PIN Mail in Hanover

Posted by | Apr 23, 2008 | |

PIN Group has sold a key subsidiary “PIN Mail Hannover GmbH” in Hanover, Germany, to the German publishing group Madsack GmbH & Co. KG for an undisclosed sum.

The insolvency administrator of PIN Holding, Bruno M. Kübler, announced that Madsack had agreed to take over the company’s 156 employees.

PIN Group had already sub-contracted mail transport in the region of Hanover to Madsack which will become its direct contractual partner with the takeover. The regional PIN network will thus be preserved within the nationwide network of the company, PIN Group said in a statement.

“The takeover through Madsack will further strengthen the strong key region,” Kübler pointed out. “The sale shows that individual PIN subsidiaries are valuable, efficient companies working in a profitable market.” He added that strong key regions in a nationwide network were an important signal also in terms of selling major parts of the PIN Group to an investor.

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Aramex increases Q1 revenues by 24pct

Posted by | Apr 23, 2008 | |

Aramex has announced a first-quarter revenue rise of 24pct to AED 494.4 million (EUR 84.1 million), from AED 399.6 million (EUR 67.9 million) for the same period last year, highlighting the company’s strong financial performance.

Net profits for 2008’s first quarter rose by 21pct to AED 36.2 million (EUR 6.2 million), from AED 29.9 million (EUR 4.9 million) posted in 2007.

Despite challenges in the market, Aramex said it continues to reap the benefits of a successful expansion strategy that has helped boost productivity and sales across key product and service lines, as reflected in the company’s healthy margins. Along with strong profitability for its freight and express product, the company has been pleased with the impressive growth of its logistics and records management services, which have witnessed 39pct and 57pct growth, respectively.

Across Aramex’s core Middle East market, performance in the Levant has improved notably, while rapid growth in the Kingdom of Saudi Arabia and excellent results in the UAE have made an unequivocal impact on the company’s profitability, the company said.

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