Tag: UPS

Spend and deliver: UPS acquisition of Overnite

Posted by | May 17, 2005 | |

Even UPS has its gaps. The world’s largest package delivery company plugged an obvious one with yesterday’s acquisition of Overnite. The deal takes UPS into less-than-truckload freight services in the US for the first time, after several years watching the success of rival FedEx in that area. Overnite is no steal for UPS. The delivery group is paying a 46 per cent premium, while giving no guidance on the synergies available to justify such a chunky uplift. There should be some. UPS will be able to squeeze some benefits from having a ground freight network to link with the air freight operations of Menlo Forwarding. From the customer perspective, UPS will be able to offer a more complete set of products. Having filled an obvious gap in the US, UPS could turn its attention to faster growing international markets for its next move. Exel, the UK-based logistics group with a strong international presence, would, for example, be a bigger bite. Investors should not underestimate UPS’s appetite.

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UPS adds ground freight options by acquiring Overnite Corp.

Posted by | May 16, 2005 | |

UPS and Overnite Corporation today jointly announced a definitive agreement for UPS to acquire Overnite for USD43.25 per share, or approximately USD1.25 billion in cash. The transaction will allow UPS to expand its service portfolio by offering a variety of less-than-truckload (LTL) and truckload (TL) services to its North American customers. It also will immediately position UPS as a top US LTL carrier and comes just five months after the company expanded its air freight services by acquiring Menlo Worldwide Forwarding. The acquisition, expected to close during the third quarter of 2005, is an all-cash transaction that will require regulatory approvals and the approval of Overnite’s shareholders. The Overnite Board of Directors has unanimously approved the agreement and recommended approval by its shareholders.

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Fighting talk as UPS defends US market share

Posted by | May 12, 2005 | |

United Parcel Service yesterday vowed to defend its share of the US package delivery market against competition from FedEx and DHL, amid signs that its troubled domestic business is back on track. Mike Eskew, chairman and chief executive, said the domestic parcel business was “well ahead” of expectations in the second quarter of this year, following several months of sluggish performance. He set a long-term target for UPS to grow in the US at the same rate as the broader market, halting erosion of the company’s dominant position in its home territory. “We believe we will be growing at the market rate by the latter part of this year and that means we will be maintaining our share,” Mr Eskew told a meeting of investors in New York. The bullish comments set the stage for an intensification of the already bitter competition between UPS, FedEx and DHL in the world’s biggest package delivery market.

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UPS pilots vote to authorize strike

Posted by | May 12, 2005 | |

The union for United Parcel Service Inc said more than 99% of its members have voted to give the authority to call a strike to the union’s five-pilot executive board. Of the 2,462 eligible crewmembers, 2,371 pilots participated in the strike vote, the Independent Pilots Association said in a press release Thursday. Of those who voted, 99% participated in favor of a strike.

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UPS is gaining momentum in 2nd quarter volume growth

Posted by | May 11, 2005 | |

Citing good momentum through the first five weeks of the quarter, UPS executives today said US domestic volume growth was “well ahead” of expectations for the second quarter and international export volume continued to climb at its expected double-digit rate. The gain in domestic volume follows a first quarter in which UPS reported significant international export package growth and a strong 16.2% gain in net income. UPS today said it continues to expect a strong 2005 with full-year net income growth of 16-to-20% over the adjusted USD2.90 reported for 2004.

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