Christmas overspend flattens UPS earnings

 

UPS reported “flat” fourth quarter earnings in the fourth quarter of 2014 compared with the same period in prior year. In fact, earnings per share, at $1.25, were identical to 2013, said the US-based express carrier.
It blamed higher than expected peak operating expenses in its home market as the carrier sought to maintain delivery times - UPS delivered 1.3bn packages during the fourth quarter, an increase of 8.1 per cent over the same period last year.
"UPS customers were delighted with the high quality service we delivered during the holiday season," said chief executive officer, David Abney. "However, the financial results were below our expectations.” He promised to “address this disparity with both cost and revenue actions" in 2015.
International revenue, on a currency-neutral basis, increased 5.9 per cent to $3.4bn – although currency fluctuations took $40m off this figure compared with 2013 - with 4.3 per cent growth in daily package volume.
Export shipments were up 5.2 per cent, driven primarily by 8.5 per cent growth from Europe, offset somewhat by a decline in Asia export volume. Non-U.S. domestic products were up 3.6 per cent with strong growth in Canada, Spain and Mexico.
Export yield contracted 1.7 per cent on a currency-neutral basis, as a result of lower fuel surcharges, product mix and stronger intra-regional shipment growth.
Revenue in the supply chain and freight segment increased 7.4 per cent to$2.5bn, with growth in distribution and UPS Freight.
Adjusted operating profit increased 4.7 per cent to $179m with improvements in distribution and UPS Freight offset by declines in the Forwarding unit, where gains in North American air freight and ocean were offset by “challenges” in international air freight.
Chief financial officer Kurt Kuehn foresees “continuous improvement and advances in strategic initiatives that have great potential for the company" during 2015. "E-commerce growth, operations technology implementation, emerging market expansion and industry specific solutions will provide momentum for UPS.”

Source : http://www.aircargonews.net/news/single-view/news/christmas-overspend-flattens-ups-earnings.html

Continue

Air Freight Volumes Show Solid Gains

 
Air freight volumes continue to show solid gains on a year ago, supported by economic improvements in some regions, says IATA in its latest quarterly cargo chartbook.
But high jet fuel prices and overall weakness in yields have kept cargo financial performance from improving so far this year, adds IATA.
“Emerging Asia trade volumes have rebounded after weakness in Q1 and consumers in the US are more optimistic. These developments have supported growth in demand for airfreighted commodities like semi-conductors,” says the report.
It continues: “However, in Europe consumer confidence and trade activity have weakened due to the Russia-Ukraine crisis. Business confidence continues to point to expansion, but rates of improvements are still weaker than 2013 year-end.”
And although jet fuel prices have eased slightly, they remain high at about $120/bb, the chartbook, adds: “On the positive side, although yields remain weak, overall they appear to be stabilizing and are up slightly on a year ago.
“This could help reduce downward pressure on cargo financial performance in months ahead. Consistent with more supportive demand conditions in some regions, cargo heads surveyed in July expect growth in traffic and yields to pick-up during the year ahead.”

Source : http://www.aircargonews.net/news/single-view/news/air-freight-volumes-show-solid-gains.html

Continue