Tag: USA

UPS rises on upgrade to 'Outperform'

Posted by | Jan 10, 2008 | |

Shares of United Parcel Service Inc. rose last Thursday 09 January after a Bear Stearns analyst upgraded the stock, citing a slew of catalysts for long-term growth including current troubles at rival FedEx Corp.

Analyst Edward Wolfe raised his rating on UPS to “Outperform” from “Peer Perform,” saying the company is well positioned to grow once the domestic economy begins to improve.

He expects the company to steer guidance lower in the next few quarters as domestic freight demand remains weak and pricing stays competitive. But a settled Teamster contact, changes in senior management, and rival FedEx Corp. ‘s ground unit woes should all benefit UPS in the long-term, Wolfe said.

The company signed a five-year contract with the Teamster union in late November. In December, former Vice Chairman and Chief Financial Officer Scott Davis took the reigns as chairman and chief executive, replacing retiring Mike Eskew.

The company also announced a change to the top post of its Asia Pacific unit Tuesday, in which Ken Torok will be replaced by Senior Vice President Derek Woodward.

Wolfe said FedEx should continue to lose business to UPS as troubles at its ground unit could lead to higher costs and slower growth. He reduced his 2009 earnings expectations for FedEx Corp. by about 5 percent, but left his 2008 expectation unchanged.

Shares of UPS rose USD 2.76, or 4.1 percent, to USD 69.47 in midday trading, while FedEx shares gained USD 1.40 to USD 84.14.

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New calls for DHL withdrawal

Posted by | Jan 9, 2008 | |

A second major investment house is calling for Deutsche Post to pull DHL out of North America.

Morgan Stanley, following on the heels of Bear Stearns, said in a Jan. 7 research report that the company needs a “quick, radical solution” to the estimated USD 900 million in losses DHL faces in the United States.

The firm likened the Deutsche Post problems to those of the former DaimlerChrysler before that automaker took action by splitting off its troubled U.S. Chrysler business.

“A substantial cut in network size, combined with subcontracting and a focus on international services (revenues from USD 4.5 billion to USD 1.7 billion), is the most logical outcome, we think,” the firm said.

Morgan Stanley’s call follows a similar plea late last month from Bear Stearns, which argues the losses in the United States are eating into Deutsche Post’s overall value to shareholders.

Morgan Stanley went a step further, however, and suggested Deutsche Post may be close to making the same decision. With a new chief financial officer at DP, the firm wrote, “we sense management has stepped up a gear in terms of addressing investors’ longstanding sore point — the U.S. business.”

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Polar Air Cargo Worldwide, Inc. Begins Operations between Japan’s Kansai International Airport and Chicago O’Hare

Posted by | Jan 9, 2008 | |

Atlas Air Worldwide Holdings, Inc. announced that Polar Air Cargo Worldwide, Inc. (Polar) will begin service into Osaka’s Kansai International Airport from Chicago O’Hare International Airport, effective February 21, 2008. Polar will operate five times weekly between Chicago and Osaka using B747-400 freighter equipment. This new service will also provide connections from Osaka to Shanghai, as well as connecting Osaka with Polar’s U.S. destinations and the fast growing South American region.

Osaka has become an important Asian hub, with approximately 500 weekly flights to Asia, 70 weekly flights to Europe and the Middle East, and 40 weekly flights to North America. Now offering the benefit of 24-hour service and a newly-opened second runway, Osaka offers Polar efficiency and convenience as it continues to build its operations in Asia.

Polar announced it would expand its operations in Japan following the conclusion of the U.S.-Japan bilateral civil aviation negotiations in September. In addition to its existing five frequencies to Tokyo with service beyond to Seoul, South Korea, Polar was granted another six frequencies to Japan, excluding Tokyo, and the right to fly beyond this new point in Japan to two points. In this, Polar was given latitude in choosing the new destination in Japan, as well as the two points outside of the country. Polar chose to commence service into Osaka with Shanghai selected as the beyond point.

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UPS expanding global service in wake of US economic downturn

Posted by | Jan 9, 2008 | |

United Parcel Service (UPS) is expanding an international air-freight service that guarantees delivery dates in the wake of a slowing US economy, the Toronto Star reports.
The UPS Express Freight service will more than triple the amount of express lanes currently served, UPS officials said.
The service, which now reaches 52 countries, is designed to provide guaranteed time-definite, overnight-to-three day door-to-door delivery including routine customs clearance to major global metropolitan areas.
UPS has been boosting international revenue at a faster rate than in the US, where the economic expansion is waning, according to the Toronto Star. The report said UPS international operations accounted for 28 pct of the company’s total revenue in 2006.

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DHL agree partnership with Walgreens

Posted by | Jan 9, 2008 | |

DHL has entered into a strategic agreement with Walgreens, the nation’s largest drugstore chain, which will more than double the number of retail outlets offering DHL Express shipping services nationally.

Walgreens is projected to expand to more than 6,500 locations by the end of 2008 with more than 1,600 stores open 24 hours a day..

The new agreement is designed to readily service shippers sending and dropping off their packages via DHL for overnight, ground or international delivery. The DHL Shipping Spot will be staffed by Walgreens associates at Walgreens photo counters to weigh, label and ship customer packages to U.S. or international destinations, creating a simple and easy shipping experience.

Walgreens customers will have access to DHL’s core express products and services. Shippers will benefit from the convenience of a DHL location “down the street” and “around the corner” that provides access to a global shipping network serving over 225 countries and territories.

By end of 2008, DHL will have more than doubled its retail presence with retail shipping locations, including Walgreens and OfficeMax locations, as well as thousands of independently owned and operated shipping centers that are part of the DHL Authorized Shipping Center network.

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