Good news at the bottom


Sector Snap: Shares of shippers fall
Shares of shippers UPS and FedEx fall on UPS holiday uncertainty, FedEx hub delay
November 17, 2008: 02:20 PM EST

NEW YORK (Associated Press) - Shares of UPS Inc. and FedEx Corp. fell Monday as UPS said it won't project how many packages it expects to deliver on its peak holiday shipping day, and as FedEx delayed the opening of its new Asia-Pacific hub in China.

Each year since its 1999 IPO, UPS has projected how many packages it will deliver on its peak shipping day _ a barometer of sorts for the strength of the holiday retail and shipping season. But amid this year's market uncertainty, the company declined to provide a forecast or project how many seasonal employees it will hire this year.

Atlanta-based UPS cited the nation's 2.8 percent drop in October retail sales and other early indicators for its reluctance to make predictions. Last year, UPS delivered more than 22 million packages on its peak shipping day, Dec. 19, and hired about 60,000 seasonal employees.

Meanwhile, FedEx said its hub in Guangzhou, China won't open until the first half of 2009, instead of by the end of this year as originally planned. The hub in southern China will be the company's largest outside the U.S.

But better news may be on the horizon. With competitor DHL exiting the U.S. domestic shipping market on Jan. 30, Stifel Nicolaus analyst David Ross expects FedEx and UPS to garner enough business to more than make up for lower volumes related to the weak U.S. economy.

In a note to clients, Ross raised his earnings estimates on both companies: to $5.60 from $5.15 per share for FedEx's fiscal year ending in May 2009, and to $3.62 per share from $3.57 for UPS' year ending in December.Analysts surveyed by Thomson Reuters have estimated FedEx's full-year profit at $5.13 per share, and UPS' profit at $3.57 per share, on average.

UPS shares fell 44 cents to $52.70 in afternoon trading, while FedEx shares were down 57 cents to $63.80.

link below, photo of new CAN hub

Photos: Airbus A320-214 Aircraft Pictures | Airliners.net

Sure glad we got a killer LOA for the HKG FDA. DW and BC really saved us with the ironclad scope language. Otherwise, China Southern would be flying all of FedEx's Asia freight!

It wasn't 'ironclad', it was 'memorialized'. Whatever the heck that means... BTW, are you using sarcasm? I didn't think that was allowed on these boards!

Memorialized...isn't that like it was laid to rest?

Where's my Scope Check??? Woops, that went to VEBA!!!

After reading the highlighted portion - maybe a better title for your thread would've been "fdx & ups good news"?

Disclaimer - in no way am I 'gloating' in DHL's demise and I hope for the very best for all DHL (ABX & Astar) employees. I'm merely responding to the slightly biased summary of the article...

No, I was being serious. They sold it like was a good deal, and said it was the best we could get...didnt they?!