FreightDawg2, I wouldn't think of calling you an idiot because of your views on this matter. But please consider a few things. This was a small earnings miss and a huge drop due to intermediate term outlook.
Now why do you think the UPS board of directors approved a stock buy back of multi Billion dollar proportions a few months ago? Why do you think they are sinking a Billion in new sort facilities? Why do you think they are buying Billions of dollars worth of new aircraft?
If you conclude that they believe business will remain good in the long term you might be right, they are making some very big bets to that effect. The stock may go lower short term, but UPS already has the money from the sale of the stock so this really won't have any effect on operating budget.
When the going gets tough only the strong survive and they end up with bigger market share.
Pilot pay only represents .3%(note the decimal) of total operating expense at UPS. Double that and we are still only talking a fraction of 1% of operating cost. Concluding that we are a drag on profits when we are such a small percentage of the workforce with the highest profitability doesn't make much sense.
Last edited by jungle; 07-25-2006 at 07:08 PM.