Tag: USA

UPS: Fourth quarter results

Posted by | Jan 30, 2008 | |

UPS reported adjusted diluted earnings per share of USD 1.13 for its fourth quarter, an 8.7 pct increase over last year. Revenue improved 6.1pct driven by a double-digit increase in international export volume, growth and firm pricing in the U.S. package business and market-leading shipment gains at UPS Freight.

During the quarter, the company announced the ratification of a new five-year agreement with the International Brotherhood of Teamsters, eight months before expiration of the existing contract. As a result, USD 6.1 billion was paid to withdraw approximately 45,000 UPS employees from the Central States multi-employer pension plan and expensed to the U.S. Package segment in the quarter. Including the impact of that charge, diluted earnings per share fell to a loss of USD 2.46 for the three-month period.

The fourth quarter produced solid growth in spite of a sluggish U.S. economy. Consolidated average daily package volume reached a record level of 17.7 million pieces, an increase of 359,000 per day. Adjusted net income for the quarter benefited from a lower effective tax rate.
For the full year, the company delivered a record 3.97 billion packages, an average of 15.8 million per day. Consolidated revenue climbed 4.5pct to USD 49.7 billion. Adjusted diluted earnings per share were USD 4.17, an increase of 8pct compared to 2006 and at the midpoint of UPS’s earnings guidance for 2007. Before adjustments, operating profit equaled USD 578 million and diluted earnings per share totaled USD 0.42.

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USPS first-quarter results reflect drop in mail volume

Posted by | Jan 30, 2008 | |

The U.S. Postal Service announced that mail volume was down 3.0 percent, or 1.7 billion pieces, for the first quarter of fiscal 2008, according to preliminary financial results presented today to the Postal Service Board of Governors.

First-Class Mail volume decreased 3.9 percent and Standard Mail decreased 2.6 percent in the quarter ending Dec. 31, 2007.

Chief Financial Officer and Executive Vice President H. Glen Walker attributed the declining mail volume to “disturbing trends” in the overall U.S. economy.

Net income for the first quarter is estimated at USD 672 million on revenue of USD 20.4 billion.

Final first-quarter financial results will be released in February.

First Quarter Service Scores

National on-time performance scores for the delivery of First-Class Mail hit all-time first-quarter highs in two of the three categories the Postal Service tracks. National overnight service was 96 percent on-time — a first for three quarters in a row. Two-day service was 93 percent on-time. Three-day performance was 88 percent, a two-point improvement over the same period last year.

First-Class Mail performance is measured independently by IBM Global Business Services. The process measures First-Class Mail from the time it is deposited into a collection box until it is delivered to a home or business.

Other Board Action

The Board today approved three facility projects: expansion of the processing and distribution centers in West Sacramento, CA, and Providence, RI, and the purchase and renovation of an existing building and site to serve as the Perris, CA, Delivery Distribution Center.

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US Postal Service revenue dips with economy’s downturn

Posted by | Jan 30, 2008 | |

The U.S. Postal Service is delivering its best service ever, but the slowing economy kept the agency short of its expected revenue by almost a half-billion dollars last quarter.
A new pricing structure was expected to boost revenues, but the nation’s slowing economy has meant less mail. The Postal Service’s first-quarter volume dropped by 1.7 billion pieces, almost 3 percent, from the same period in 2007. The first quarter runs from October through December. The decrease affected virtually all categories of mail. The steepest decline was in Express Mail, which lost nearly 11 percent of its volume.

Periodicals were the only category to post an increase, a modest 1.2 percent.

Despite the drop, the Postal Service managed to post USD 689 million in increased revenue over the first quarter of 2007, mostly attributable to the increased fees. But that figure was USD 500 million short of expectations: The higher prices couldn’t fully offset lost revenue.

Performance reviews, on the other hand, were overwhelmingly positive. The first quarter is typically the most difficult, because of holiday shipping and unpredictable weather. But national service was at all-time highs, with 96 percent of overnight mail and 93 percent of two-day mail reaching its destination on time. And a national poll found 92 percent of residential customers were pleased with the Postal Service.

The numbers were especially good for Chicago, which last year ranked as the worst mail market in the nation. Ninety-four percent of Chicago’s overnight mail and 92 percent of its two-day mail arrived on time in the first quarter, increases of 5 and 11 percent over 2007.

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Consumer interest in mobile commerce extends beyond banking

Posted by | Jan 30, 2008 | |

Consumers across the United States are ready to adopt a broad set of mobile commerce applications, according to new research from Dove Consulting. The research, sponsored by PSCU Financial Services, was conducted using focus groups in multiple cities, and gauged consumer interest in and predicted future use of three major mobile applications: mobile banking (using a mobile device to access banking information), mobile payment at the point-of-sale (using a mobile device to make purchases), and mobile person-to-person payments (using a mobile device to send money to another mobile device).

When asked which of these mobile applications they were most excited about using, nearly two-thirds of study participants chose mobile banking and 30 percent chose mobile payment at the point-of-sale. Only a handful indicated they were excited about mobile person-to-person payments.

According to Chris Allen, a director with Dove Consulting and head of the payments strategy team, these results are in line with the direction the financial services industry is moving.

“Given everything financial institutions have done to encourage the adoption of mobile banking, it isn’t surprising that more people are comfortable with the technology and interested in using it,” Allen said. “I expect as more applications are developed that allow people to use their phones and mobile devices to pay for goods and services, consumer interest in this technology will grow and we will see it move into the mainstream, probably within the next two-to-four years.”

Participants indicated they are ready to start using mobile banking and mobile payment at the point-of-sale now. For both applications, adoption is likely to begin with a smaller group of tech-savvy users embracing the applications early, and the majority of consumers adopting soon afterwards once the product is more established. Person-to-person mobile payments did not resonate as strongly with participants, with few indicating they would adopt at any point in time.

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Western Union teams up with Bangladesh postal department for easy transfer of remittance

Posted by | Jan 29, 2008 | |

Western Union, an international money transferring company, has teamed up with Bangladesh Postal Department for delivering the money remitted by expatriate Bangladeshis to the villagers easily.

The Ministry of Posts and Telecommunications and the Western Union (WU) signed the five-year deal on December 12, 2007, Brigadier General (rtd) M A Malek, special assistant to the Chief Adviser, told journalists.

“As per the deal, we will launch our services through 450 post stations in Bangladesh in the first phase and the number of such postal WU money receiving points will be raised gradually,” according to Anil Kapur, WU managing director for South Asia, who was also present at the press meet.

Acting Posts and Telecommunications Secretary Iqbal Mahmood termed the agreement as a new dimension to the postal services.

“We have started delivering passport forms and I hope we will also be able to deliver passports from post offices very soon,” he said.

Special Assistant Malek hinted at renewal of the deal after expiry of its five-year tenure for continuation of the WU-Postal Department joint services to ensure ‘easy and timely’ delivery of remittances in rural Bangladesh.

Anil informed the journalists that Bangladesh is one of the top 15 remittance recipients across the globe.

As per official statistics, the country received nearly USD 6 billion as remittance from non-resident Bangladeshis (NRBs) last year and the contribution of such remittance to the gross domestic product (GDP) crosses 13 percent.

The regional top official of the international money transfer firm said at present 30 percent remittance comes from Saudi Arabia, 15 percent from the USA and more than 10 percent from the UK.

With only 100 points across the country at the onset of its operation, the WU has now set up more than 1400 points to receive money, Anil said while giving a resume of his company.

The WU’s share in global money transfer business is over 17 percent, he said.

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