Tag: Europe

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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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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Microsoft and HayPost Sign Agreement

Posted by | Apr 23, 2008 | |

Microsoft and HayPost will sign an Enterprise Agreement on April 22, 2008 at 14:00 pm. This signing ceremony will take place at the Marriott Armenia Hotel. With support of Dom Daniel LLC – the Large Account Reseller (LAC), this agreement between Microsoft and HayPost will help continue to move forward many of the transformations that HayPost has been undertaking, but this time in the IT sector.

The purpose of this agreement will be to help HayPost utilize and implement Microsoft’s most innovative technologies and use these to increase the productivity of HayPost’s resources. Microsoft will provide training for HayPost IT staff as well as organization workshops and seminars to ensure that the new technologies will be utilized efficiently.

We strongly believe that Microsoft’s innovative technologies will be used as highly productive resources in building up-to-date IT Infrastructure for HayPost and are ready to openly share our experience and knowledge with our new customer.
In this respect we would like to thank management of HayPost for the understanding that effective use of IT can bring to tremendous improvement and great results in terms of making the entire organization much more manageable, effective and offering high quality services.”

Both parties are highly convinced that this cooperation will bring a long, productive and sustainable partnership and help the credibility not only in the IT sector in Armenia, but also the efficiency of the postal and financial sector in the country.

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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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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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