Tag: UPS

Strong international growth produces solid quarter for UPS

Posted by | Apr 25, 2007 | |

UPS today reported a 7.9% increase in adjusted diluted earnings per share to USD0.96 on a 3.3% revenue gain, thanks to a strong performance by its international operation and significant improvement by its supply chain and freight segment.

Those results exclude an impairment charge relating to aging jet aircraft and expenses for a voluntary separation program completed during the quarter. Including these charges, diluted earnings per share declined 12.4% to USD0.78 compared to the same period in 2006.

For the three months ended March 31, 2007, adjusted operating margin improved 30 basis points to 13.8%. The supply chain and freight segment reported adjusted operating profit of USD54 million, an improvement of USD79 million.

During the period, UPS took an impairment charge of USD221 million on certain Boeing 727 and 747 aircraft, including related engines and parts. In addition, the company realized a charge to expense of USD68 million to reflect the cost of a previously announced voluntary separation opportunity. The effect of these two items after tax was USD184 million, which reduced diluted earnings per share by USD0.18.

The aircraft impairment charge impacted the U.S. Domestic Package segment by USD159 million and the International Package segment by USD62 million. The separation charge impacted the U.S. Domestic Package segment by USD53 million, the International Package segment by USD7 million and the Supply Chain and Freight segment by USD8 million.

UPS ended the quarter with USD2.4 billion in cash and marketable securities. UPS also generated USD1.9 billion in free cash flow, purchased 8.9 million shares, paid dividends totaling USD828 million and invested USD675 million in capital expenditures.

Consolidated volume in the U.S. operation was flat for the quarter as a result of a slowing U.S. economy.

Export volume showed strong growth with a 10% gain, led by a jump of more than 20% from Asia and a double-digit increase from Europe.

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IntelliTrack announces improved package tracking applications

Posted by | Apr 19, 2007 | |

IntelliTrack, Inc., developer of barcode, RFID and wireless software, announced a new software upgrade to improve mailroom management. IntelliTrack’s software program, Package Track, decreases the amount of time spent identifying and redistributing incoming packages within an organization’s mailroom. The newest version, 3.1, utilizes a SQL backend database in addition to efficient carrier and tracking number identification found in each barcode for incoming packages.

Incoming packages from major carriers such as UPS, DHL, FedEx, and USPS are scanned and entered into the Package Track database. Packages are then tracked through the chain of custody from the moment a package is received from the carrier, until the final recipient signs for it. Packages are delivered to the recipient, scanned, and a signature is captured on the hand-held device to document proof of delivery.

Performance improvements include faster portable data terminal (PDT) response by eliminating the delay in recipient queries and selection for each package. This feature is instrumental for larger organizations with abundant lists of potential mail recipients. When using previous versions of the software, larger databases would take several minutes to locate each desired recipient requiring the user to scroll through lengthy lists. With Package Track SQL version 3.1, recipients can be instantly identified accelerating mailroom management processes.

Along with performance improvements, Package Track now has the ability to read larger barcodes up to 55 characters. With user definable tracking formats, each barcode can define what carrier is in control of each package. The tracking number is automatically extracted from each barcode and easily defined on a portable data computer after the barcode is scanned.

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Indian logistics market to touch euro 90b by 2015

Posted by | Apr 17, 2007 | |

At a time when the logistics industry in India is at a major inflexion point and international majors like United Parcel Services (UPS) and FedEx have started making their presence felt, DHL could not have waited any longer. DHL Exel Supply Chain & Global Forwarding CEO John Allan came calling last week. Attracted, no doubt, by the booming logistics market in India.

Riding on the increased investments in infrastructure, proposed phase out of Central Sales Tax (CST) and boom in the manufacturing sector, the organised Indian logistics industry is growing larger by the day. “We estimate the Indian logistics market to be around euro 33 billion. By 2015, we expect it to reach almost euro 90 billion at a compounded annual growth rate (CAGR) of over 11%, which is higher than the rate of growth of the Indian economy,” says Mr Allan.

He adds that in the next decade, there will be a substantial growth in the manufacturing segment, which will trickle down as opportunity for logistics companies. “There are two reasons why we see a major opportunity here. Firstly, India serves as a good base for manufacturing for exports like automobile components and pharmaceuticals so most of them are moving to India. Secondly, the size of the domestic market is itself getting larger.”

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Researchers see India's express industry growing by 20% a year

Posted by | Apr 16, 2007 | |

India’s express and courier industry, now valued at Rs71bn (USD1.63bn), is forecast to reveal a compound annual growth rate of 20% over the next five years and more than double its size by 2012.

According to a study by rating agency Credit Analysis’ research the main growth driver for the express industry will be the opening up of the banking, insurance, retail, aviation and telecommunications sectors.

Several executives recently interviewed for UPS indicated that a key segment of Asia’s business leaders were more excited about the growth of India than they were of China’s.

While there was optimism over the growth of the Chinese consumer market, small and medium sized enterprise leaders across Asia expressed a desire to capitalise on India’s rapid growth by leveraging its continued rise as a manufacturing base.

Leaders of such enterprises also expressed a desire to become an outsourcing destination for India and an exporter of raw materials to India for manufacturing.

The UPS Asia Business Monitor, a survey designed to gauge the competitiveness of small and medium sized enterprises in Asia, also found that, of 1,200 decision-makers interviewed across 12 different markets in the region 85% said India had the potential to be a regional economic leader and 81% said the country’s economy was certain to grow this year.

The express industry in India, which ranks among the fastest growing sectors in the Indian economy, has been growing at an annual rate of 33% over the past decade.

At its present estimated size, the industry is almost as large as the shipping and paper industries in the country. However, it is highly fragmented, with more than 2,500 express operators, although about 20 of them make up more than 50% of the industry’s revenues.

According to another study the organised portion of the industry comprises 65% of the total market.

The semi-organised and unorganised segments, which consist largely of regional and intra-city service providers and the government-run EMS Speedpost, between them account for the rest.

Among domestic operators, Blue Dart, DTDC, First Flight and Overnite Express are leading express service companies while FedEx, UPS, DHL and TNT are the top international operators.

‘Document parcels that weigh less than 300 gm account for about 70% of the total volume of document parcels and intra-city deliveries account for nearly 37% of their turnover,’ the CARE report says.

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UPS plans air hub in China

Posted by | Apr 13, 2007 | |

United Parcel Service, the world’s largest package-delivery company, will spend an initial USD20 million to build a new hub in Shanghai to raise air deliveries in China.

The hub, to be located at Shanghai Pudong International Airport, is to start operating in 2008, according to an agreement UPS signed with Shanghai Airport Group on Thursday.

The hub aims to serve a logistics market that grew 14 percent last year, spurring UPS and other overseas companies to add facilities. UPS has invested USD600 million in China in the past five years and now ships to more than 330 cities in the country with 4,500 employees.

”We will continue to make appropriate investment in China to meet our customers’ demand,” said Ken Torok, president of UPS Asia Pacific. ”This new international air hub is a critical milestone in our goal to maximize our air network infrastructure in this country.”

UPS in August opened its first two retail centers in mainland China. The company, based in Atlanta flies Boeing MD-11s and 747s to China and plans to add more 747s. The hub will be serviced by eight 747-400s.

The Chinese logistics market grew to 3.84 trillion yuan, or USD500 billion, last year, according to the Chinese government. The Chinese domestic air cargo market grew 28 percent to 21.3 billion yuan, the planning agency said March 15.

The new hub is designed to handle 17,000 items an hour by 2012, in a 96,000-square-meter, or one-million-square-foot, facility with plans for ”rapid expansion,” UPS said. The hub could employ more than 1,000 people by 2010.

Deutsche Post’s DHL Global Forwarding said Jan. 26 that it had become the first overseas company to offer domestic airfreight forwarding in China. It will initially offer services in 17 cities, a number that may rise to 70 within five years, it said.

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