Tag: UPS

Spree of acquisitions on courier service market in Romania

Posted by | Apr 29, 2008 | |

The Romanian courier services market has seen several acquisitions since the beginning of the year that have introduced major players such as UPS and the French Post Office on the domestic market, while the German Post Office has strengthened its position, and the Austrians remain interested in the market. So what is in store for the courier services industry?

Domestic couriers had announced as early as two years ago that they planned to attract strategic investors or investment funds to further develop some businesses on one of the most dynamic markets in Romania

Still, the first deals were only clinched as late as at the beginning of the year. The spree of acquisitions started with the direct entrance of UPS in Romania, through the acquisition of Trans Courier Service, and continued with the biggest deal sealed so far on this market, the sale of Cargus to DHL.

While the German Post Office provider acquired Cargus to strengthen its presence on the market, the French Post Office in turn took over a company to enter the Romanian market. Thus, the courier service unit GeoPost and Turkey’s Yurtici Kargo took over 80% in Pegasus, in a deal ZF estimates at 6-9m euros.

Domestically, sale announcements also came from TCE Logistica and Curiero. While TCE representatives are preparing to start talks, Curiero has already reached an agreement with Asesoft for a 25 pct stake.

Smaller companies on the market, such as Sprint Courier, Concorde Courier, Alo Courier, Nemo Expres and Roexpres, are also likely to be the target of some acquisitions in the following period considering the large investments required to support growth and remain competitive.

In addition, a rising number of foreign shipping, courier and logistics companies are interested in the domestic market, which includes the Austrian Post Office.

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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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UPS releases first quarter results

Posted by | Apr 23, 2008 | |

UPS reported increased revenue in all segments with double-digit gains in both international package and supply chain and freight operations. A sharp decline in U.S. economic activity, however, led to a 9.4pct drop in diluted earnings per share to USD 0.87 compared to a prior-year adjusted USD 0.96.

In 2007, first quarter adjusted earnings per share excluded an impairment charge related to aging jet aircraft and expenses for a voluntary separation program. Including these charges, diluted earnings per share for the first quarter of 2008 increased 11.5pct over the USD 0.78 per share reported in the prior year.

For the three months ended March 31, 2008, consolidated revenue increased 6.5pct to USD 12.7 billion while consolidated average daily volume remained flat at 15.1 million packages per day. Consolidated average revenue per piece increased 5.4pct.

“U.S. economic activity deteriorated more rapidly than expected during the quarter,” said Scott Davis, UPS chairman and CEO. “While we will be extremely vigilant with respect to costs in this difficult environment, we will not lose our focus on growing the business. We will continue to invest in the infrastructure, new products and services that will enable our customers to succeed in the global marketplace.

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DHL, UPS target Latin America growth

Posted by | Apr 22, 2008 | |

DHL Express and UPS plan to invest more in Latin America this year to grow their business in the region and partly compensate for the impact of the slowing US economy.

Roger Crook, CEO DHL Express International Americas, told Chilean newspaper El Mercurio that the company planned to invest about USD 70 million in Latin America during 2008 and aimed to grow about 12 pct. Plans include two new offices in Chile but he did not disclose further details of the investment.

A significant proportion is likely to go to Mexico, however, in view of DHL’s plan to spend USD 112 million there over the next five years. Crook said early last year that DHL would invest USD 80 million in the region and was aiming for 15-20 pct growth in 2007.

Meanwhile, UPS, which during 2006-07 invested USD 7 million on 15 new operation centres to extend its Mexican network to 35 locations, is opening a further eight centres in the country this year, according to Mexican newspaper El Financiero.

Rubén Medina, UPS international sales manager, told the newspaper that despite the US economic slowdown, the operator’s Mexican exports grew by 5 pctin the final quarter of 2007. UPS will also aim to win more business among manufacturing companies along the Mexican border and SMEs this year, he added.

Mexico is the largest market in Latin America for UPS which has five daily flights from Mexico City to five different US airports. UPS has invested USD 39 million in Mexico since launching operations there in 1989, the newspaper said.

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Latvian express market grows 70pct in 2007

Posted by | Apr 22, 2008 | |

Latvia’s express parcel volumes increased by 70pct to 6.3 million shipments in 2007 compared to 3.7 million shipments in the previous year, according to the Latvian Public Utilities Commission’s (PUC) annual review of the country’s express delivery market, the Baltic Business Daily reported.

“Both domestic and international deliveries showed large growth. The incoming international express deliveries rose by 128pct, international outgoing deliveries by 35pct, and domestic express deliveries increased by 45pct,” the commission’s representative Zanete Luse was cited as saying.

In the domestic sector, DPD Latvija had the largest market share with 43pct in 2007 ahead of state-run postal operator Latvijas Pasts with 27pct, according to the regulator’s data. Other leading domestic players include Velokurjers, City Express, Autopasts Terminals and V-Sports.

The international sector was led by Itella Logistics with a 53pct market share followed by DPD Latvija with 19pct. Other leading international players include UPS partner EKL/LS, DHL, TNT and Autopasts Terminals.

The number of registered express companies in Latvia grew by eight to a total of 30 last year, according to the PUC. The PUC is an independent state institution responsible for regulating various sectors, including the postal market.

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