Two items of interest that caught my attention:
the world's largest package-delivery company, lowered its second- quarter profit forecast because of rising fuel costs and a slowing U.S. economy.
Profit. I noticed how the word
profit was used in the same sentence as "rising fuel costs" and a "slowing U.S. economy". In other words, I remain very optimistic because we are able to maintain profitability even during a weak economy. Everyone else is practicing damage control with regards to their financial condition and trying to limit their
losses. UPS is simply adjusting their predicted profit.
UPS's fuel surcharges for air shipments will increase to 32.5 percent in early July, up from 28 percent now, according to the carrier's Web site. Kuehn said the second quarter will be 2008's ``most challenging'' because of the run-up in fuel.
UPS and FedEx are unique in that they are able to incur a fuel surcharge in the price of their products and still market those services above cost.