Subscribe to our free, weekly email newsletter!


UPS remains confident with its logistics strategy

UPS told investors last week that it would continue to invest in new technology and expanded facilities
By Patrick Burnson, Executive Editor
September 21, 2011

Investment analysts greeted the news when UPS announced objectives for growing its revenue and profit over the next 3-to-5 years.

Jason Seidl, director of Equity Research – Rail, Trucking Air Freight & Logistics at Dahlman Rose & Co., noted that the company’s supply chain and freight business segment posted another strong quarter.

“Revenue increased 7 pecent to $2.32 billion, which was largely in line with our estimate,” he said.  “Operating profits climbed 41 percent on the 7 percent revenue growth, driven primarily by improvements in the Forwarding business unit, as a result of favorable rates and revenue management.”

UPS told investors last week that it would continue to invest in new technology and expanded facilities.

Diluted earnings per share are expected to grow 10 to 15 percent from 2011 to 2016, the company’s top executives told analysts and investors late last week.

Addressing analysts during the course of the Investor Conference, senior executives outlined expectations for performance of the U.S. Domestic, International and the Supply Chain segments. Additionally, the company announced major expansion plans for its European air hub in Cologne, Germany, increasing capacity by 65 percent.

“Our long-term outlook remains positive despite recent economic uncertainty,” said UPS Chairman and CEO Scott Davis. “UPS is well positioned to capture the opportunities presented by the mega trends shaping our industry.”

The Investor Conference, built around the theme “Stronger Than Ever…Positioned for Growth,” was held in Louisville in order to display the results of a multi-year, multi-billion-dollar investment program. Over the past six years, UPS has:

• Completed a $1 billion expansion of its high-tech UPS Worldport air hub.?
• Opened a new air freight hub and a Global Operations Center for the UPS Airlines. ?
• Began operations in a new Centennial ground hub.?
• Doubled the size of its supply chain and logistics campus.?
• Assembled the “youngest” fleet of aircraft in the cargo industry.
UPS Chief Financial Officer Kurt Kuehn summed up the conference by maintaining that UPS business model is “unique,” with a long-term sustainability plan in place.

“Our ever-expanding capabilities create a moat that separates us from our competitors and that will deliver superior returns to shareowners for years to come,” he said.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Information abounds about the growing trend of electric lift trucks and the advantages and disadvantages of the electric solution. Amid all of the information from so many sources, what's the truth about electric lift trucks? This complimentary white paper breaks through the clutter to review why electric lift trucks are gaining in popularity and also to review their challenges, as well as their economic and environmental benefits.

Three weeks after initiating a coordinated series of slowdowns that have mired the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the ILWU has pushed away from the bargaining table.

DHL has released the third edition of its Global Connectedness Index (GCI), a detailed analysis of the state of globalization around the world.

The truck driver shortage is worsening, threatening the trucking industry’s ability to serve the nation’s supply chains. The shortage will almost certainly cause fleets’ costs to increase and shippers’ rate to continue to rise.

The Agriculture Transportation Coalition has asked the Administration to bring in a federal mediator to help resolve the negotiations, and if a strike or lockout occurs, the AgTC advocates the rarely-invoked Taft-Hartley Act.

Article Topics

News · Global Logistics · Global Trade · Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA