Tag: North America

UPS shares at 4 1/2-year low after profit warning

Posted by | Jun 24, 2008 | |

United Parcel Service Inc shares fell 4.6 percent on Tuesday to their lowest point since late 2003.

UPS’s announcement came just a week after main rival Memphis-based FedEx Corp posted a quarterly loss and gave a weak profit outlook for its fiscal 2009.

The warning, which weighed on U.S. stocks, was the latest sign that corporate America could no longer brush off surging energy prices. Crude oil prices have roughly doubled over the past year.

UPS shares dropped USD 3.06 to USD 63.20.

The Dow Jones transportation index .DJT, which also includes airlines and railroads, was down 1.3 percent.

Like other major companies in the U.S. transport sector, UPS passes on higher fuel costs to customers. But as BB&T Capital Markets analyst John Barnes wrote in a note to clients, “fuel prices may have reached a tipping point at which many shippers are simply unwilling to pay the higher fuel surcharges.

Late Monday, UPS said it expected to earn between 83 cents and 88 cents per share in the second quarter, down from a previous range of 97 cents to USD 1.04.

In a statement, the company said U.S. package volume had been lower than expected, while demand for higher-priced air delivery services had seen a particular drop.

UPS also said that the “anemic U.S. economy is negatively impacting volume into the United States, affecting results for the international segment.”

In recent quarters, strong international package demand has helped both UPS and FedEx offset lower growth in their domestic services as U.S. economic growth has slowed.

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USPS launches expedited legal-sized envelopes

Posted by | Jun 23, 2008 | |

USPS has launched new legal-sized Express Mail and Priority Mail envelopes, available to customers free of charge.
The new Express Mail envelope allows legal-sized papers to be sent without folding anywhere in the U.S. for the lowest price of any guaranteed overnight service. The new Priority Mail legal-sized envelope provides two-day delivery to most U.S. locations at an even lower price. And both can also be used to ship internationally.
Unlike envelopes from other carriers, Express Mail and Priority Mail may be delivered to mailboxes, mail slots and P.O. Boxes, making it the most secure option for legal-sized documents in the U.S.
The new envelope sizes are part of the Postal Service’s ongoing focus to enhance shipping services for customers, which include several flat-rate package options as well as new, competitive zone-based prices, online discounts and volume rebates launched May 12. And, later this year, there will be a new letter-sized Express Mail envelope. The envelope, designed for use by commercial mailers with automated mailing equipment provides easy access to any size mailbox for time-sensitive documents.
Both of the new legal-sized envelopes have been Cradle-to-Cradle certified, meaning they meet the highest independent standards for recyclability and environmental soundness.

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USPS submits network plan to Congress

Posted by | Jun 23, 2008 | |

The US Postal Service submitted its network plan, which outlines the agency’s initiatives to produce better and more efficient operations and customer service, with Congress last week.

The network plan is a requirement of the Postal Accountability and Enhancement Act of 2006. It was developed following consultations with the Postal Regulatory Commission initiated in February.

According to the USPS, the plan “positions the postal service to pursue achievement of the newly established service standards, and better ensures the long-term financial stability of the postal service and the mailing industry.”

The document addresses the USPS’s performance goals, which include the establishment of baseline performance targets for various market-dominant products. It also lists a number of initiatives designed to improve the consistency of internal mail flow management practices, including software advancements, value stream mapping and data system enhancements.

Plans for alternative retail options are also outlined in the document. “Whether through traditional bricks-and-mortar post office locations, other retail locations, or online, the postal service will continue to actively promote increased customer use of efficient and easy-to-use retail access channels,” the USPS wrote.

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Verizon Business Unit Selected by U.S. Postal Service to Provide USD 16.4M in Network Services

Posted by | Jun 23, 2008 | |

Verizon announced that its Business unit has been selected by the U.S Postal Service to provide an estimated USD 16.4 million worth of network services under the federal Networx Universal communications program.

Verizon Business will be the primary provider of long-distance and calling-card services for the agency’s nearly 166,000 lines serving 34,000 locations nationwide, under a 10-year agreement valued at USD 10 million. In addition, the company was awarded a new task order valued at USD 6.4 million to upgrade about 100 data circuits to an Internet protocol network based on multi-protocol label switching.

Verizon Communications, Inc. provides communication services in the United States and internationally.

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UPS lowers 2nd quarter earnings expectations (U.S)

Posted by | Jun 23, 2008 | |

UPS announced it expects earnings per diluted share for the second quarter within a range of USD 0.83-to-USD 0.88 compared to the USD 0.97-to USD 1.04 per share the company originally anticipated.

Slow U.S. economic growth and an unprecedented increase in the cost of fuel have resulted in lower-than-expected U.S. package volume and an accelerating contraction in the use of premium air products. In addition, the anemic U.S. economy is negatively impacting package volume into the United States, affecting results for the International segment. Performance in the Supply Chain & Freight segment is continuing to exceed expectations.

On July 22, UPS will release second quarter results followed by a conference call to provide insight into the quarter and remainder of the year.

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