UPS going on buying spree? DHL North American ops maybe?
01-09-2008, 02:20 PM
#1
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Joined APC: Sep 2007
Posts: 337
UPS going on buying spree? DHL North American ops maybe?
UPS Adopts New Financial Policy to Enhance Shareholder Value 
Press Release
ATLANTA, Jan. 9, 2008 - UPS (NYSE: UPS) today announced its Board of Directors has approved a change in financial policy regarding the company's capital structure designed to enhance UPS's value to shareowners. Under the new policy, UPS intends to significantly increase the debt component of its balance sheet. Going forward, the company intends to manage its balance sheet to a target debt ratio within a range of 50-to-60% funds-from-operations-to-total-debt. Previously, there was no stated metric.
"We have been studying our capital structure options for some time," said Kurt Kuehn, UPS's chief financial officer. "This change in policy will permit us to make increased investments in the business, pursue selective acquisitions and undertake larger share repurchases."
To begin implementation of the new policy, the Board authorized an immediate increase in the amount of funds available for stock repurchases from approximately $2 billion to $10 billion. The company intends to complete that level of share repurchases in the next 24 months. Repurchases may take the form of an accelerated share repurchase program, open market purchases or such other methods as the Board deems appropriate.
"UPS has had a long-standing commitment to a very strong balance sheet for decades and that will not change," added Scott Davis, UPS's chairman and CEO. "Indeed, we are putting that balance sheet strength to work to more efficiently deploy capital for the benefit of our shareowners. UPS's consistent, stable cash flows mean we can accept a higher degree of debt while continuing to strategically grow our business."
Press ReleaseATLANTA, Jan. 9, 2008 - UPS (NYSE: UPS) today announced its Board of Directors has approved a change in financial policy regarding the company's capital structure designed to enhance UPS's value to shareowners. Under the new policy, UPS intends to significantly increase the debt component of its balance sheet. Going forward, the company intends to manage its balance sheet to a target debt ratio within a range of 50-to-60% funds-from-operations-to-total-debt. Previously, there was no stated metric.
"We have been studying our capital structure options for some time," said Kurt Kuehn, UPS's chief financial officer. "This change in policy will permit us to make increased investments in the business, pursue selective acquisitions and undertake larger share repurchases."
To begin implementation of the new policy, the Board authorized an immediate increase in the amount of funds available for stock repurchases from approximately $2 billion to $10 billion. The company intends to complete that level of share repurchases in the next 24 months. Repurchases may take the form of an accelerated share repurchase program, open market purchases or such other methods as the Board deems appropriate.
"UPS has had a long-standing commitment to a very strong balance sheet for decades and that will not change," added Scott Davis, UPS's chairman and CEO. "Indeed, we are putting that balance sheet strength to work to more efficiently deploy capital for the benefit of our shareowners. UPS's consistent, stable cash flows mean we can accept a higher degree of debt while continuing to strategically grow our business."
01-10-2008, 08:15 AM
#8
Gets Weekends Off
Joined APC: May 2006
Posts: 983
Our new CEO is upto something good. Time to spend those billions! I'm thinking acquisitions in 2008, but low US dollar could make overseas purchases tough.
http://biz.yahoo.com/ap/080110/ups_mover.html?.v=1
AP
UPS Rises on Upgrade to 'Outperform'
Thursday January 10, 11:41 am ET
UPS Shares Rise After Analyst Upgrades Stock, Citing Expected Long-Term Benefits
NEW YORK (AP) -- Shares of package delivery company United Parcel Service Inc. rose Thursday 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.
And as FedEx continues to deal with legal, tax and labor issues related to its Ground unit contractor model -- which classifies drivers as independent contractors rather than employees -- UPS is poised to gain a bigger stake in the ground delivery market, Wolfe said.
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 $2.76, or 4.1 percent, to $69.47 in midday trading, while FedEx shares gained $1.40 to $84.14.
http://biz.yahoo.com/ap/080110/ups_mover.html?.v=1
AP
UPS Rises on Upgrade to 'Outperform'
Thursday January 10, 11:41 am ET
UPS Shares Rise After Analyst Upgrades Stock, Citing Expected Long-Term Benefits
NEW YORK (AP) -- Shares of package delivery company United Parcel Service Inc. rose Thursday 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.
And as FedEx continues to deal with legal, tax and labor issues related to its Ground unit contractor model -- which classifies drivers as independent contractors rather than employees -- UPS is poised to gain a bigger stake in the ground delivery market, Wolfe said.
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 $2.76, or 4.1 percent, to $69.47 in midday trading, while FedEx shares gained $1.40 to $84.14.
01-10-2008, 12:22 PM
#9
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Joined APC: Mar 2006
Posts: 3,333
I hope there will be a new airplane order - an economic downturn is the perfect time for buying (locking in prices).
I think both FedEx and UPS learned their lesson when shortly after 9/11 they turned down Boeing’s offer to buy 2 B757s for the price of 1. Boeing was trying to keep the production line open but both FedEx and UPS turned the offer down only to pay premium prices for new and used airplanes some 5 years later.
Better yet, maybe part of the extra money will be spent on buy-outs for senior guys?
I think both FedEx and UPS learned their lesson when shortly after 9/11 they turned down Boeing’s offer to buy 2 B757s for the price of 1. Boeing was trying to keep the production line open but both FedEx and UPS turned the offer down only to pay premium prices for new and used airplanes some 5 years later.
Better yet, maybe part of the extra money will be spent on buy-outs for senior guys?
01-10-2008, 12:51 PM
#10
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Joined APC: May 2006
Posts: 540
Originally Posted by ⌐ AV8OR WANNABE
I hope there will be a new airplane order - an economic downturn is the perfect time for buying (locking in prices).
I think both FedEx and UPS learned their lesson when shortly after 9/11 they turned down Boeing’s offer to buy 2 B757s for the price of 1. Boeing was trying to keep the production line open but both FedEx and UPS turned the offer down only to pay premium prices for new and used airplanes some 5 years later.
I'm not a finance major but since the US economy is down (read dollar has lost value) that would be default mean that the overseas markets or "dollar" is up (very simplistic)? He who has the money drives the market and it's not the US economy. Now, if UPS really does pay cash for it's planes then yeah, belly up to the proverbial bar and commence to getting some good deals. However with the amount of sales both EADS and BA have had over the past three years I doubt it's a buyers market right now regardless of our economy.
Better yet, maybe part of the extra money will be spent on buy-outs for senior guys?
I think both FedEx and UPS learned their lesson when shortly after 9/11 they turned down Boeing’s offer to buy 2 B757s for the price of 1. Boeing was trying to keep the production line open but both FedEx and UPS turned the offer down only to pay premium prices for new and used airplanes some 5 years later.
I'm not a finance major but since the US economy is down (read dollar has lost value) that would be default mean that the overseas markets or "dollar" is up (very simplistic)? He who has the money drives the market and it's not the US economy. Now, if UPS really does pay cash for it's planes then yeah, belly up to the proverbial bar and commence to getting some good deals. However with the amount of sales both EADS and BA have had over the past three years I doubt it's a buyers market right now regardless of our economy.
Better yet, maybe part of the extra money will be spent on buy-outs for senior guys?
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