UPS Problem; Too much cash...
02-05-2010, 10:01 AM
#1
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Joined APC: Dec 2005
Position: MD-11 F/O UPS
Posts: 175
UPS Problem; Too much cash...
ATLANTA (TheStreet) --UPS (UPS Quote) moved Thursday to address its "problem" -- too much cash -- by raising its dividend.
The company said it would increase the quarterly dividend to 47 cents from 45 cents, payable March 3 to shareholders of record on Feb. 16.
The company on Tuesday guided toward earnings of $2.70 to $3.05 a share in the current year. Analysts surveyed by Thomson Reuters had been estimating $2.81. On an earnings conference call, CFO Kurt Kuehn said the guidance was "aggressive," but justified by increasing revenue and declines in projecting spending.
"We are going to be back soon hopefully to that problem of what to do with excess cash generation," Kuehn said. "We have no intentions of building a large hoard of cash."
The dividend increase was not exactly a surprise. UPS company has either increased or maintained its dividend every year for four decades.
This combined with the post 4Q conference call makes me feel like a sucker for giving up so much to RDG in the MOU's but very confident in having a job in 6 months. As both a bottom 300 and stockholder this gives me a very nice warm fuzzy feeling.
The company said it would increase the quarterly dividend to 47 cents from 45 cents, payable March 3 to shareholders of record on Feb. 16.
The company on Tuesday guided toward earnings of $2.70 to $3.05 a share in the current year. Analysts surveyed by Thomson Reuters had been estimating $2.81. On an earnings conference call, CFO Kurt Kuehn said the guidance was "aggressive," but justified by increasing revenue and declines in projecting spending.
"We are going to be back soon hopefully to that problem of what to do with excess cash generation," Kuehn said. "We have no intentions of building a large hoard of cash."
The dividend increase was not exactly a surprise. UPS company has either increased or maintained its dividend every year for four decades.
This combined with the post 4Q conference call makes me feel like a sucker for giving up so much to RDG in the MOU's but very confident in having a job in 6 months. As both a bottom 300 and stockholder this gives me a very nice warm fuzzy feeling.
02-05-2010, 10:14 AM
#2
Gets Weekends Off
Joined APC: Mar 2006
Posts: 1,409
Originally Posted by VegasBoy
ATLANTA (TheStreet) --UPS (UPS Quote) moved Thursday to address its "problem" -- too much cash -- by raising its dividend.
The company said it would increase the quarterly dividend to 47 cents from 45 cents, payable March 3 to shareholders of record on Feb. 16.
The company on Tuesday guided toward earnings of $2.70 to $3.05 a share in the current year. Analysts surveyed by Thomson Reuters had been estimating $2.81. On an earnings conference call, CFO Kurt Kuehn said the guidance was "aggressive," but justified by increasing revenue and declines in projecting spending.
"We are going to be back soon hopefully to that problem of what to do with excess cash generation," Kuehn said. "We have no intentions of building a large hoard of cash."
The dividend increase was not exactly a surprise. UPS company has either increased or maintained its dividend every year for four decades.
This combined with the post 4Q conference call makes me feel like a sucker for giving up so much to RDG in the MOU's but very confident in having a job in 6 months. As both a bottom 300 and stockholder this gives me a very nice warm fuzzy feeling.
The company said it would increase the quarterly dividend to 47 cents from 45 cents, payable March 3 to shareholders of record on Feb. 16.
The company on Tuesday guided toward earnings of $2.70 to $3.05 a share in the current year. Analysts surveyed by Thomson Reuters had been estimating $2.81. On an earnings conference call, CFO Kurt Kuehn said the guidance was "aggressive," but justified by increasing revenue and declines in projecting spending.
"We are going to be back soon hopefully to that problem of what to do with excess cash generation," Kuehn said. "We have no intentions of building a large hoard of cash."
The dividend increase was not exactly a surprise. UPS company has either increased or maintained its dividend every year for four decades.
This combined with the post 4Q conference call makes me feel like a sucker for giving up so much to RDG in the MOU's but very confident in having a job in 6 months. As both a bottom 300 and stockholder this gives me a very nice warm fuzzy feeling.
02-05-2010, 01:53 PM
#3
Gets Weekends Off
Joined APC: Jan 2009
Position: SDF’s finest dive - Toasting Jungle
Posts: 181
Originally Posted by VegasBoy
This combined with the post 4Q conference call makes me feel like a sucker for giving up so much to RDG in the MOU's but very confident in having a job in 6 months. As both a bottom 300 and stockholder this gives me a very nice warm fuzzy feeling.
Been a lot of rants about not being overstaffed, etc on the B&G due to JA's in ANC, etc. They obviously granted too much leave, RDG, etc in this domicile, etc. And I think the occasional JA for them beats having more of us around right now. But we still have 100+ sitting at home not doing a thing. I hope I am wrong about whats coming on Monday. Just one more guys opinion.
Good luck EB.
02-05-2010, 02:47 PM
#4
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Joined APC: Oct 2005
Position: Brown
Posts: 1,126
Many at home will not undergo training. My guess is it is probably 15-20. We have the most senior DC-8 guys at home. Many of them have never flown without an FE or used FMS automation. That background matched with having not flown in a year will cause some to fail training and opt to retire. We are still overmanned but every body that retires saves a job at the bottom.
02-05-2010, 02:55 PM
#5
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Joined APC: Apr 2005
Posts: 534
Originally Posted by L'il J.Seinfeld
Many at home will not undergo training. My guess is it is probably 15-20. We have the most senior DC-8 guys at home. Many of them have never flown without an FE or used FMS automation. That background matched with having not flown in a year will cause some to fail training and opt to retire. We are still overmanned but every body that retires saves a job at the bottom.
02-05-2010, 03:18 PM
#7
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Joined APC: Dec 2005
Position: MD-11 F/O UPS
Posts: 175
No question we have people sitting at home getting paid. So one way or another we are overstaffed. However I can't see the company:
-increasing dividends (by over 20 mill.)
-CEO stating in earnings call the recession is over
-reinstating management bonuses
-unfreezing management compensation and
-restoring profit forecasts
and then furloughing pilots. Those things just don't make sense in combination.
-increasing dividends (by over 20 mill.)
-CEO stating in earnings call the recession is over
-reinstating management bonuses
-unfreezing management compensation and
-restoring profit forecasts
and then furloughing pilots. Those things just don't make sense in combination.
02-05-2010, 03:35 PM
#8
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Joined APC: Jan 2007
Position: 757/767
Posts: 579
Originally Posted by L'il J.Seinfeld
...That background matched with having not flown in a year will cause some to fail training and opt to retire...
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