By Hao Li: Subscribe to Hao's RSS feed
July 26, 2010 4:17 PM EDT
The global freight business is poised to continue their strong recovery and two giants of the industry, United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX), are feeling pretty confident.
FedEx announced Monday that it now expects earnings for the quarter ending August 31 to range from $1.05-to-1.25 per diluted share, which would be an 81-to-116 percent increase from the same period a year ago. They previously expected $0.85-to-$1.05 per share. For the full year, FedEx expects to earn $4.60-to-$5.20 per share compared to $3.76 last year, a 22-to-38 percent increase.
"Resumed growth in industrial production and global trade is increasing demand for our transportation services,” said CEO Alan Graf Jr. in FedEx's latest earnings release. In the most recent quarter, FedEx swung to a profit compared to a loss last year, while revenues grew 20 percent.
Like us on Facebook
Rival UPS also reported strong results in its latest quarter. Diluted earnings jumped 71 percent from the same period last year and revenues increased 13 percent. UPS expects 2010 adjusted earnings to grow 45-to-50 percent from last year.
UPS management was less upbeat about the global economy due to “ the anticipated slow pace of the U.S. recovery and a cautious outlook for Europe.” They credit their recent performance and confidence in the future to their ability to execute well and improve profit margins.
“Recent results reflect an improving global freight environment with demand across the business segments improving,” stated Robert W. Baird & Co. analyst Jon Langenfeld in a research note about FedEx.
Langenfeld expects global air cargo volume to increase 5 to 6 percent “over the long term” because of “increases in globalization, supply chain complexity, and demand for integrated logistics offerings accompanied by robust technology solutions.”
Diet Soda: Research Sparks Debate on Risks of Heart Disease, StrokePut down your diet soda and listen up. The bubbly zero calorie drink may increase your risk of heart disease, according to new research.
Debbie Cook: Scientology E-mail Lawsuit Finished as Horrific Details EmergeIn one of the most shocking accounts of cult abuse, a lawsuit between the Church of Scientology and former church official Debbie ...
Greece in Turmoil as EU Austerity Package Put on HoldGreece’s financial future in doubt after ministers look again at strict terms of European rescue package.
We value your privacy. Your email address will not be shared.
