Tag: UPS

United Parcel Service has filed a petition seeking the right to sign confidential contracts for its ocean delivery services, a move that strikes at the heart of the 1998 Ocean Shipping Reform Act. In its petition to the Federal Maritime Commission, which under OSRA has broad authority to review and grant such exemptions, UPS argues that its request for confidential contracting is consistent with the legislative intent of the law.

Under current law, companies that own vessels are permitted to engage in confidential contracting. However, companies like UPS that are classified for the purposes of ocean transport as non-vessel operating common carriers, must make their rate structure known through the publication of tariffs.

Garmin International Inc., in its first major acquisition, said on Thursday that it had agreed to buy a subsidiary of United Parcel Service Inc. for $38 million in cash.

UPS Aviation Technologies Inc. designs and makes communication, navigation and surveillance products for the general aviation and air transport industries. The company, based in Salem, Ore., employs about 150 people, including 50 engineers.

UPS today reported strong financial performance for the second quarter, with all segments showing growth despite a lackluster economy in the United States and much of the world.

Highlights for the quarter included:

Earnings per diluted share increased 13% to $0.61 from $0.54 last year.

U.S. package volume increased 1.2%, paced by a 9.1% increase in Next Day Air® volume.

International profitability increased more than 150%.

Non-package profits climbed 34%.

“We’re quite pleased with our results this quarter as all units met our expectations,” said Scott Davis, UPS’s chief financial officer. “We’re also seeing each business segment contribute to the success of the other units as we deploy integrated solutions across the supply chain.”

For the quarter ended June 30, 2003, revenue totaled $8.23 billion, up 7.1%
from the $7.68 billion reported during the same period in 2002. Consolidated
operating profit increased 5.1% to $1.08 billion. Net income totaled $692 million, an increase of 13.3% over the prior year’s $611 million. The international segment led the company’s results, with revenue increasing
19.8% to $1.37 billion and operating profit surging 154.8% to $158 million. Operating margin for the segment was 11.5%, making this the third consecutive quarter with international operating margins over 10%. Worldwide export volume climbed 6.2%, led by a 15% gain in Asia.