Tag: Courier/Express/Parcels

DHL Express disposes of two subsidiaries to Austrian Post

Posted by | Aug 9, 2007 | |

DHL Express has reached an agreement to sell its Dutch subsidiary Dedicated Distribution Services (DDS) and its Belgian subsidiary Van Osselaer Pieters Colli Service (VOP) to Österreichische Post AG (ÖPAG), the Austrian post office. The transaction is a further step in DHL’s strategy to optimize the strategic synergies within the EXPRESS organization and thus to maximize shareholder value. The transaction will not have any effect on the services provided to existing customers.

“It is our explicit strategy within DHL EXPRESS Global to focus on core express products and services. Our primary focus is to ensure that our businesses are synergistic. This means putting emphasis on systematized products with similar features, standard shipment characteristic and high quality levels. This will ensure that we significantly enhance the quality of our offering and provide increased benefits to customers and other stakeholders. This divestment program is an important step to bring healthy returns on capital employed”, said John Mullen, CEO of DHL EXPRESS Global and Member of the Board of Management at Deutsche Post World Net.

After transferring the DHL Freight business from EXPRESS to LOGISTICS in 2006 and integrating the standard Parcel business in Germany into the MAIL division, the current sale of the two Benelux subsidiaries is another milestone in DHL’s strategic approach to simplify its business processes and to increase the transparency of its product offerings.

The parties have agreed not to disclose the value of the transactions.

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FedEx lawsuit could cost USD 630 million

Posted by | Aug 9, 2007 | |

A federal judge in South Bend this month will weigh whether lawsuits filed by independent contractors against FedEx Corp. in two dozen states should be combined.

About 150 independent contract drivers, designated by FedEx as part-time employees, seek to be classified as full-time workers, according to Bloomberg. That would entitle them to benefits and paid time off.

FedEx also could be forced to buy up to 15,000 trucks used by the drivers, at USD 45,000 apiece. According to some estimates, a favorable ruling for contract drivers could cost the Memphis-based company USD 630 million.

FedEx has been nipping at the heels of larger United Parcel Service, grabbing nearly 20 percent of the ground-delivery market, while UPS has shrunk to 70 percent from 82 percent over the past decade.

The Teamsters union, which represents UPS drivers, is behind the flurry of lawsuits, according to FedEx. It filed as evidence with the court copies of emails between the union and attorneys representing the independent drivers.

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Atlas Air Worldwide Holdings, Inc. 2Q07 Net Income Totals USD 43.2 Million, Up 304 pct

Posted by | Aug 8, 2007 | |

Atlas Air Worldwide Holdings reported sharply higher earnings for the second quarter of 2007 compared with second quarter of 2006. This reflects a continuing improvement in aircraft utilization due to proactive asset management, sustained operational execution, the positive impact of Continuous Improvement initiatives, increased AMC charter demand, and reduced net interest expense.

Earnings for the quarter included a substantial tax benefit related to DHL Express’ investment in Polar Air Cargo Worldwide, Inc., in which DHL acquired a 49 pct equity interest (including a 25pct voting stake) in exchange for USD150 million in cash; USD75 million was received at closing in late June, with the balance scheduled to be received in 2008.

For the June 30, 2007 quarter, AAWW earned USD 43.2 million, 304 pct more than in the second quarter of 2006. Earnings per diluted share equaled USD 2.01, nearly four times the year-ago level. Revenues for the quarter totaled USD 370.4 million, with operating income of USD3 1.2 million and pretax income of USD25.2 million. Net income reflected a tax benefit of USD 18.0 million, which was driven by a net tax benefit in connection with the DHL transaction that reduced income tax expense in the quarter by USD 27.7 million, or the equivalent of USD1.29 per diluted share.

The Company recorded a deferred gain of USD 151.4 million in the quarter as a result of the DHL transaction. The gain will be recognized as income in the period in which the blocked-space agreement between Polar Air Cargo Worldwide and DHL commences, which is scheduled to occur no later than October 31, 2008.

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UPS, Teamsters close to withdrawal deal

Posted by | Aug 8, 2007 | |

United Parcel Service of America Inc., Atlanta, and Teamsters Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., reached an agreement on the company’s potential withdrawal from the USD 20.7 billion fund, according to a letter the International Brotherhood of Teamsters sent to local union offices.

Norman Black, UPS spokesman, and Central States officials Mark F. Angerame, CFO, and William J. Nellis, attorney couldn’t be reached for confirmation.

“The specific terms of the agreement are being finalized by the company and fund,” according to a letter by James P. Hoffa, Teamster president and chairman of the Teamsters National United Parcel Service Negotiating Committee, and Ken Hall, co-chairman of the committee.

Any agreement between UPS and Central States “cannot be implemented unless it is accepted by the (Teamsters) negotiating committee and ratified by the members,” the letter said. “In short, the existence of the agreement between Central States and UPS does not mean that UPS is free to withdraw from Central States and establish a new, jointly administered Teamster pension plan for its employees.”

The Teamsters committee still awaits official notification of the agreement, according to the letter.

UPS is the biggest contributor to the Central States fund, and its employees account for the largest number of Teamsters members.

UPS contributes to 20 other Teamsters jointly trusteed plans covering UPS employees.

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Poste Italiane faces competition probe

Posted by | Aug 8, 2007 | |

Italian competition regulator Autorita Garante della Concorrenza e del Mercato (Antitrust) has opened an investigation into possible abuse of a dominant market position by the country’s leading postal services operator, Poste Italiane. The investigation relates to liberalised services and services that are due to be liberalised in the next six years, and covers supply contracts made by Poste Italiane between December 2000 and January 2007. These contracts are thought to have been weighted in the state-owned group’s favour, and to have contained clauses that restricted competition.

Poste Italiane CEO Massimo Sarmi said that he was confident about the outcome of the inquiry, which should be revealed before the end of May next year, because the company had ‘always respected market regulations, competition, and consumer rights’.

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