UPS - United Parcel Service, Inc.

NYSE - NYSE Delayed Price. Currency in USD
96.72
+0.42 (+0.44%)
At close: 4:00PM EDT

98.13 +1.41 (1.46%)
Pre-Market: 4:15AM EDT

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close96.30
Open96.79
Bid98.04 x 1100
Ask0.00 x 1300
Day's Range95.70 - 97.57
52 Week Range82.00 - 125.31
Volume2,406,594
Avg. Volume5,902,280
Market Cap83.39B
Beta (5Y Monthly)0.83
PE Ratio (TTM)19.58
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield4.04 (4.18%)
Ex-Dividend DateMay 22, 2020
1y Target EstN/A
  • Bloomberg

    Amazon Prime Air Seen Surging Fivefold to 200 Jets, Rivaling UPS

    (Bloomberg) -- Amazon.com Inc.’s Prime Air fleet will grow to about 200 planes -- up from 42 now -- in the next seven or eight years, creating an air cargo service that could rival United Parcel Service Inc., according to a study.“At a time when many other airlines are downsizing due to the pandemic, Amazon’s push for faster and cheaper at-home delivery is moving ahead on an ambitious timetable,” said the report issued Friday by DePaul University’s Chaddick Institute of Metropolitan Development. “Amazon Air’s robust expansion makes it one of the biggest stories in the air cargo industry in years.”Amazon unveiled the air cargo service in 2016, prompting speculation that it would ultimately create an overnight delivery network to rival delivery partners UPS and FedEx Corp.Prime Air operates out of smaller regional airports close to its warehouses around the country, helping Amazon quickly move inventory to accommodate one- and two-day delivery. For that reason, some analysts have dismissed Amazon as a potential competitor to UPS and FedEx since it can only offer limited service to a small number of destinations and seems designed to handle Amazon packages.Key to its ability to take on the entrenched players, the report says, is Amazon’s new $1.5 billion facility near Cincinnati that will accommodate up to 100 planes and as many as 200 flights each day. Amazon’s lack of a central hub has kept it from competing in the overnight delivery services offered by UPS and FedEx, which have more planes flying to more destinations.“The massive investment being made in a large hub at Cincinnati/Northern Kentucky International Airport, however, could change everything,” the report says. “This hub appears to be the linchpin to Amazon’s efforts to develop a comprehensive array of domestic delivery services.”A separate report released Monday noted Amazon’s lack of a central hub in concluding it was not a competitive threat to FedEx, which has a hub in Memphis, or UPS, which has one in Louisville. FedEx’s network can offer 9,000 daily flight connections, UPS’ 5,500 and Amazon Air just 363, according to the report from Bernstein.“The viability of a commercial overnight offering from Amazon remains very limited,” Bernstein analyst David Vernon wrote. “Offering a low cost on shipping to a small number of markets every so often will never be a serious competitive threat.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    USPS Needs Fixing. Wall Street Has a Plan.

    Investors should watch what happens, because changes for the U.S. Postal Service have big implications for FedEx and UPS, and for companies involved in e-commerce.

  • Reuters

    FOCUS-Automated delivery cashes in on pandemic-driven demand

    The coronavirus crisis is accelerating a shift in the world of autonomous cars toward delivering packages instead of people, as big players open up a lead over startups in the race for funding. "The reality right now is that goods delivery is a bigger market than moving people," John Krafcik, chief executive officer of self-driving technology company Waymo, told Reuters in early May. Waymo, a unit of Google’s parent Alphabet, started out focusing on autonomous taxis.

  • UPS Announces Service Expansion on Next Day Air Volume Surge
    Zacks

    UPS Announces Service Expansion on Next Day Air Volume Surge

    With a rapid rise in Next Day Air volumes, UPS plans to launch air service from Gary/Chicago International Airport on Nov 2.

  • Matternet Readies Cargo Drone For FAA tests
    Benzinga

    Matternet Readies Cargo Drone For FAA tests

    One of the country's largest small drone manufacturers is ready to begin durability and reliability testing of one of its cargo delivery units with the U.S. Federal Aviation Administration (FAA) this year.Mountain View, California-based Matternet announced Tuesday that the testing with the agency brings the company's M2 drone closer to receiving special type certification for unmanned aircraft systems.Achieving this certification from the FAA will establish that Matternet's M2 drone is airworthy and eligible for use by commercial air carriers. While numerous cargo delivery drones are undergoing development and testing, none has received this level of certification.Since March 2019, FAA-approved drone airline UPS Flight Forward has used Matternet's M2 drones to carry out various urban cargo delivery tests throughout the country.In partnership with WakeMed Health, UPS Flight Forward used M2 drones to complete more than 1,850 deliveries of lab samples within its Raleigh, North Carolina, medical campus in 2019. The FAA requires UPS drone operators to maintain a clear line of sight of the machines during flight.This month UPS Flight Forward will use M2 drones to make short-distance deliveries of prescription drugs from a CVS Health Corp. pharmacy to The Villages in Florida, the largest U.S. retirement community and home to more than 135,000 residents.The potential for "touchless" drone deliveries of medical supplies, lab samples and pharmaceuticals has taken on increased significance with efforts to combat the spread of COVID-19 within communities."The Matternet M2 has been purpose-built for its mission of urban medical delivery, combining solid engineering, years of flight experience, and the safety and security required for medical logistics," said the company's CEO, Andreas Raptopoulos, in a statement.Receiving this type of certification from the FAA will allow UPS to scale operations much more quickly, Matternet said.However, industry experts say the agency's durability and reliability testing to certify airworthiness is rigorous."This will probably be measured in years rather than months," said Michael Blades, vice president of aerospace, defense and security at investment strategies firm Frost & Sullivan. "The strict safety requirements will require a lot of testing over a relatively long period of time."Amazon.com Inc (NASDAQ: AMZN) began developing drones in 2013 for consumer deliveries. Since then, other express delivery companies, such as United Parcel Service, Inc (NYSE: UPS) and FedEx Corporation (NYSE: FDX), have initiated their own plans for the technology.Blades told American Shipper during an interview in mid-April that FAA regulations for drone flight ceilings, times of operation and visual contact by operators during flight continue to hold back the technology's commercial cargo potential in the U.S.He estimated in a recent Frost & Sullivan report that between 2019 and 2023, about 100,000 drones will be in use for cargo delivery applications, and they will be operated by firms providing niche services.Photo credit: MatternetSee more from Benzinga * Avianca Receives Preliminary OK For Chapter 11 Bankruptcy * Today's Pickup: How A Canadian Carrier Recession-Proofed Its Business * Double-Digit Percentage Declines Persist For US Rail Volumes(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • How Drones Are Changing the Business World
    Investopedia

    How Drones Are Changing the Business World

    The economic impact associated with unmanned aerial vehicle (UAV) integration consists of job creation and billion-dollar growth.

  • Barrons.com

    The USPS Faces an ‘Existential Threat.’ What That Means for FedEx and UPS Stock.

    The U.S. Postal Service lost $4.5 billion in the quarter ended March, and more pain is coming. Logistics investors should be aware of results the USPS reports because it is a huge player in the shipping industry.

  • Even the Essential Industries Aren’t Adding That Many Jobs
    Bloomberg

    Even the Essential Industries Aren’t Adding That Many Jobs

    (Bloomberg Opinion) -- Amid the worst jobs report in the history of jobs reports, a few industries actually added jobs from mid-March to mid-April.“General merchandise stores including warehouse clubs and supercenters” is the North American Industry Classification System category for Walmarts, Targets, Dollar Trees, Sam’s Clubs, Costcos and such. It seems likely that supermarkets also saw job gains, but for them and most other industry subcategories employment is reported with a one month lag, so we won’t know until the next jobs report. Food and beverage stores, the supersector that includes supermarkets, saw a 42,000-job seasonally adjusted decline in employment in April.Among the other job-gaining sectors, “other information services” may require some explanation. About 80% of its jobs are at “Internet publishing and broadcasting and web search portals,” which covers the likes of Google, Facebook and Twitter. The remainder are at other digital information providers such as, well, the publisher of Bloomberg Opinion. “Couriers and messengers” is FedEx, United Parcel Service and their ilk.One thing that stands out here is that the job gains are really, really tiny compared with the 20.5 million jobs lost. We may well see a more significant shift of employment into pandemic-resistant or pandemic-fighting sectors in the coming months, but that takes a while. And given that the shifts in demand that have had everybody lining up at Costco for toilet paper are not (one hopes) permanent, such companies are unlikely to go overboard with hiring.Another thing that stands out is that a lot of sectors that would seem to be quite essential in a pandemic nonetheless shed jobs. I’ve listed a selection here, ranked by percentage job losses rather than the absolute numbers because that seemed more informative.Other health-care sectors were even harder hit as almost all non-coronavirus-related care was put on hold for the month, with employment down 15.2% at ambulatory health-care services and 52.5% at dentists’ offices. Then again, a lot of those jobs ought to return quickly as well, although things are definitely going to be tough for dentists and dental hygienists, whose work probably entails more intense coronavirus risk than any other.The bigger message here may just be that a U.S. economy that is pared down to “essentials” isn’t much of an economy. Here’s hoping we all start doing a lot more nonessential (but also non-virus-spreading) things soon.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • UPS Stock Can Handle the Load
    InvestorPlace

    UPS Stock Can Handle the Load

    In the center of the novel coronavirus pandemic, the question on income investors' minds is whether any stock can afford to pay its dividend. United Parcel Service (NYSE:UPS) stock can handle that load.Source: Sundry Photography / Shutterstock.com For the March quarter, UPS had net income of $935 million, $1.11 per share diluted, on revenue of $18 billion. That was higher than its quarterly dividend payout of $1.01 per share. The company also announced free cash flow of $1.6 billion, also enough to clear the dividend's cost.Analysts whined about the revenue mix, which was higher for residential than commercial deliveries, and terrible for international. But UPS opened for trading May 8 at about $93, and that dividend yield is about 4.3%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Income Investors Take NoteAt a time when retired investors are reaching for yield in high-risk corporate bonds, the UPS dividend should be attractive. While common stock investors are always last in line for corporate obligations, behind bonds and all other bills, UPS proved this winter it can deliver results in all economic seasons.This has not made it a stock for all investors. Those seeking capital gains will see its down 20% so far in 2020. Those seeking growth will see that March revenue was just 5% ahead of last year. Analysts are updating their models to reflect UPS' slow, steady and profitable growth. * 7 A-Rated REITs to Buy NowUPS isn't coming away from the pandemic unscathed. Home deliveries are less profitable than bulk deliveries to business. First-quarter profit was down from a year earlier, even while revenue grew.UPS is also finding new ways to compete with Amazon.com (NASDAQ:AMZN). Its network of UPS Stores means it has a physical presence that can even take Amazon returns. This will expand through an agreement to take packages from The Michaels Companies (NASDAQ:MIK) chain of crafts stores, when retailing reopens.While longtime rival FedEx (NYSE:FDX) has gotten itself into trouble by picking fights with Amazon, UPS learned to adapt. I have speculated it's because FedEx is still led by founder Fred Smith, while UPS has recharged its management with outsiders from Home Depot (NYSE:HD), PepsiCo (NYSE:PEP) and Walmart (NYSE:WMT). For them, Amazon is less an existential threat than a part of the business environment. A Trump Bump?UPS may also benefit from Trump's insistence that the U.S. Postal Service stop "subsidizing" Amazon and raise rates. Such a move would bring UPS more incremental business, cash with which to expand its own delivery network.During the current quarter, UPS drivers are hitting the road more, but making less for the company. That should change as stores and factories re-open over the next few months. UPS has also proven it can make money in a tough environment so that, if the lockdowns return, it is ready.Competition with Amazon also steeled UPS in the use of new technology. It is now delivering prescriptions to some senior centers using drones, in conjunction with CVS Health (NYSE:CVS). The pandemic is giving UPS the cash flow to move ahead in areas that had previously been theoretical. The Bottom Line for UPS StockUPS stock is not for everyone.In today's market it's the equivalent of an old-line industrial. It's a slow growth company with a steady stream of income.That means if you're looking for capital gains, look elsewhere. UPS' share price should recover as the pandemic retreats, but it will never be a high-flyer. It will continue to ride low to the ground.But at a time when high-flyers are out of fashion, with conservative investors doing triage on their portfolios against the virus' siege, UPS stands out at its current price. It will still pay you to own it, and that's saying something.Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS and AMZN. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post UPS Stock Can Handle the Load appeared first on InvestorPlace.

  • Bloomberg

    SBA Treated as a Washington Backwater, Until Disaster Strikes

    (Bloomberg) -- The only person who didn’t speak at a White House briefing on a massive federal effort to aid mom-and-pop firms crushed by the coronavirus pandemic was the woman actually running the initiative, Jovita Carranza.President Donald Trump, his daughter Ivanka and Treasury Secretary Steven Mnuchin all lauded the program despite its rocky start at the beginning of April. Carranza, who was charged with processing hundreds of billions of dollars in loans only months into her new job as the head of the Small Business Administration, smiled approvingly, but was never asked to speak.Carranza’s sideline role at the April 28 event was emblematic of the challenges facing her agency, which has long been treated as a backwater in Washington. Despite its checkered track record in disaster response, the SBA is now responsible for a $669 billion program to rescue the 30 million small firms that make up nearly half the U.S. economy.The SBA has approved more than half a trillion dollars in loans in a matter of weeks and has about $125 billion left before a second round of funding runs out. Advocates fear that the money will be exhausted again before all small firms that need it get help. At the same time, Trump is pushing to reopen the economy with polls showing Americans are wary about returning to business as usual.For years, Congress hasn’t set up the SBA to adequately respond to crises. And lawmakers have never before asked it to handle an effort as massive as the Paycheck Protection Program, meant to help devastated small businesses survive the pandemic.Working with the Treasury, Congress decided that to get money out fast, it had to put the SBA in charge because the agency already had an established loan program with a network of pre-approved banks. That left Carranza, who was a deputy administrator under President George W. Bush, to make the best of a situation everyone worried would be fraught with problems.‘Massive, Massive Program’“They gave the SBA, an agency that has repeatedly botched previous disaster responses, the responsibility to handle this massive, massive program,” said Veronique de Rugy, a senior research fellow at George Mason University’s Mercatus Center who has studied the agency’s history.An agency spokesman called the SBA’s performance an “historic achievement.” A Treasury spokeswoman agreed that the SBA is performing well under Carranza and said that she works closely with Mnuchin. White House spokespeople didn’t respond to a question about why she wasn’t invited to address the April 28 White House event.Carranza declined to be interviewed for this article.“She’s been faced with about the most challenging circumstance a head of the SBA has ever had to operate under,” said Representative Steve Chabot of Ohio, the top Republican on the House Small Business Committee. “I mean, the very survival of the American economy rests on your shoulders.”The SBA, which was elevated to a cabinet-level agency by President Barack Obama, supports the nation’s small businesses through loan programs and training for entrepreneurs. In times of crisis, including after Hurricanes Katrina, Irma and Harvey, the agency bolstered its funding programs to supply mom and pop firms and homeowners with emergency capital.The rocky launch of the PPP program featured some of the same problems the SBA hadn’t fixed after past disasters, in addition to new ones. Technology meltdowns and the way the program was structured led to delays in getting the money to those who needed it the most.In the first round of funding, many small companies were left stranded while hundreds of publicly traded companies got more than $1 billion. Major banks favored large corporate clients, whose bigger loan amounts gave lenders fatter fees. Congress was forced to replenish the fund just two weeks after it began.The SBA has been especially handicapped under Trump, according to John Arensmeyer, who heads the Small Business Majority, an advocacy group that has a network of more than 58,000 small business owners, most of whom have less than 100 employees.When Carranza took up her post in January, the agency had had a leadership vacuum and was being run by its general counsel. Its former head, Linda McMahon, a Trump donor and co-founder of World Wrestling Entertainment, Inc., left in April 2019 to chair Trump’s 2020 Super-PAC America First Action. Carranza was picked for the post last July after serving as U.S. treasurer since June 2017. In that role, she advised Mnuchin and oversaw the printing of money. Her signature appeared on bills.The White House still hasn’t nominated a new No. 2 -- the deputy administrator who normally handles the day-to-day affairs -- after the last one left in 2018. In February, Trump proposed cutting the agency’s 2021 budget by 25%.The Government Accountability Office, Congress’s watchdog agency, has repeatedly warned that the SBA’s technology needs to be revamped. Its budget is about $1 billion and its staff of more than 6,000, compared with the Commerce Department, which has 52,000 employees and a budget of $15.2 billion. Although Congress eventually added $2.8 billion for SBA salaries and other expenses in its pandemic relief measures, some said it was too little, too late, given the magnitude of the task.“The SBA is going to need to be better-funded and more of a priority agency simply because of the disaster that’s befallen small businesses across the country,” said Arensmeyer. “I would hope that the administration and Congress recognize that.”Despite the difficulties, Carranza has earned the respect of key lawmakers and small-business groups, who said she’s been accessible, willing to listen and a problem-solver.She is no stranger to challenges. A native of Chicago and the daughter of first-generation Mexican-Americans, she worked two jobs and raised a child as a single mother, according to her testimony during her December Senate confirmation hearing.She spent 30 years at United Parcel Service Inc., where she started as a part-time, hourly employee on the warehouse docks, loading packages onto trucks. She climbed the ladder to eventually lead the company’s operations in Latin America and the Caribbean, managing thousands of employees. She retired as the highest-ranking Latina in the company’s history.Carranza ran the SBA’s day-to-day operations under Bush from 2006 to 2009. As deputy administrator, she oversaw 80 national field offices and a portfolio of loans worth tens of billions of dollars. She developed the SBA’s disaster recovery plan after the agency faced a torrent of criticism over how slowly it administered loans after Hurricane Katrina.Her former SBA colleagues describe her as a hands-on manager who can speak authoritatively on minute details. Eric Thorson, who was the SBA’s inspector general at the time, said agency heads often had antagonistic relationships with their inspectors general. That wasn’t the case with Carranza, who was eager to address issues his office highlighted, he said.Carranza began her second stint at SBA with ambitious goals to reform the agency, including doing more to support women and minority-owned businesses and making the agency’s emergency loan systems more efficient.Then catastrophe struck. By mid-March, the pandemic had prompted businesses to close their doors as stay-at-home orders stretched across the country. Hotels, airlines, media, restaurants and manufacturers shed jobs by the millions as revenue dried up.Carranza and Mnuchin met with lawmakers including Senators Marco Rubio, a Florida Republican, and Ben Cardin, a Maryland Democrat, to hammer out a small business aid package as part of the administration’s multi-trillion-dollar relief initiative. Democrats on the small business panel wanted to set up a grant program, which Republicans opposed because they thought it would take too long and instead pushed for a loan program, according to a person familiar with the matter.Lawmakers worried that the SBA wouldn’t be able to handle the job. Mnuchin dispatched Deputy Secretary Justin Muzinich, his No. 2 at the Treasury, to the SBA to smooth out the program’s rollout, according to a person familiar with the matter.Representative Nydia Velazquez, a New York Democrat and chairwoman of the House Small Business Committee, said she called Carranza after the program was approved and told her: “You got to be prepared.” Carranza replied that she had her team working overtime to be ready because she knew how important it was to the economy, Velazquez said.‘She Is Committed’“She has been there, what, three months?” said Velazquez. “I know she is committed. I know they are working hard.”The SBA has moved much more quickly amid the coronavirus pandemic than in past crises, despite a flood of applications and technology glitches. It made changes to ensure the money gets to those who need it the most, including creating a window when only the smallest lenders could apply. Lawmakers, the White House and even Carranza herself have boasted about how rapidly the agency was able to distribute the loans.The SBA’s pandemic response could face more attacks as it distributes an additional $320 billion. It missed an April 26 deadline for providing guidance on how loans will be forgiven -- meaning that small business owners who struggled to get funding still don’t know how much they may have to repay.Cardin said the pandemic has underscored the need to fix the country’s response to disasters. “There’s two parts to this,” Cardin said. “One is to triage this current situation to make sure underserved communities get loans” and the other is to build capacity for the future, he said. “Whether they’re economic downturns or natural disasters or other pandemics,” Cardin added, “there will be other problems.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • What UPS' Coronavirus-Influenced Quarterly Report Revealed to Investors
    Motley Fool

    What UPS' Coronavirus-Influenced Quarterly Report Revealed to Investors

    In a move unlikely to surprise anyone, UPS followed FedEx (NYSE: FDX) in withdrawing its full-year guidance due to the impact of the COVID-19 pandemic. The contrast is most striking in the U.S. domestic package segment, where a high-single-digit revenue increase matched with a 42.2% fall in operating profit.

  • Barrons.com

    Most People Want to Bail Out the USPS, According to a New Poll

    A new poll finds that, essentially, everyone supports helping the post office through the Covid-19 crisis.

  • Is UPS Stock A Good Buy As Coronavirus Crisis Slams Economy?
    Investor's Business Daily

    Is UPS Stock A Good Buy As Coronavirus Crisis Slams Economy?

    United Parcel Service is the world’s biggest express carrier and package delivery company. But amid the coronavirus crisis, is UPS stock a buy right now?

  • United Parcel Service, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
    Simply Wall St.

    United Parcel Service, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models

    Last week, you might have seen that United Parcel Service, Inc. (NYSE:UPS) released its first-quarter result to the...

  • Buyers of United Parcel Service Could Target the $84 Area
    TheStreet.com

    Buyers of United Parcel Service Could Target the $84 Area

    In this daily bar chart of UPS, below, we can see that prices rolled over from August to January and then "fell out of bed" in February and March. UPS is back below the declining 50-day moving average and the slower-to-react 200-day average line has a negative slope too. The On-Balance-Volume (OBV) line has been in a decline from November and recently made a new low for the move down telling us that despite the price bounce, sellers of UPS have been more aggressive.

  • Benzinga

    Cramer Weighs In On Cracker Barrel, UPS And More

    On CNBC's "Mad Money Lightning Round," Jim Cramer revealed that he is worried because Royal Dutch Shell plc ADR Class A (NYSE: RDS-A) has cut its dividend for the first time since the World War II. He is not a buyer of the stock.Cramer is not recommending any retailers other than the "WATCH" retailers, which are Walmart Inc (NYSE: WMT), Amazon.com, Inc. (NASDAQ: AMZN), Target Corporation (NYSE: TGT), Costco Wholesale Corporation (NASDAQ: COST) and Home Depot Inc (NYSE: HD).Franco Nevada Corp (NYSE: FNV) has been real good and Cramer sees it as a winner. He would buy more on a pull back. He likes Barrick Gold Corp (NYSE: GOLD) even more.Cramer has always felt that Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) is cheap, but right now he would stay away from the stock because people aren't driving that much.United Parcel Service, Inc. (NYSE: UPS) posted a quarter that was not that good, but Cramer would buy it if it drops to $90.Cramer likes Exelixis, Inc. (NASDAQ: EXEL). He sees it as a great cancer treatment spec.Raytheon Technologies Corp (NYSE: RTX) traded lower on Thursday. Cramer doesn't like the aerospace sector right here, but he would be a buyer of Raytheon Technologies a little bit lower.See more from Benzinga * Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Kushner Airlift Moves Millions of Masks, But Details Are Secret
    Bloomberg

    Kushner Airlift Moves Millions of Masks, But Details Are Secret

    (Bloomberg) -- A program created by Donald Trump’s son-in-law Jared Kushner has airlifted millions of gloves, masks and other coveted coronavirus supplies into the U.S. from overseas -- but it isn’t clear who’s getting them and at what price, or how much private-sector partners are earning through the arrangement.Kushner’s “Project Airbridge” provides transportation via FedEx Corp. and others for supplies that medical distributors, including McKesson Corp. and Cardinal Health Inc., buy from overseas manufacturers, mainly in China. Once a supplier’s goods arrive in the U.S., the companies must sell half the order in government-designated hotspots. They sell the rest as they see fit.The U.S. government provides the air transportation for free, to speed the arrival of the products. The six distributors keep the profits, if any.The program has won praise from some states, where officials say it provided hard-to-find supplies at a critical time in the Covid-19 outbreak, even if it met a fraction of demand.“We are very supportive of Airbridge and other federal programs that can provide PPE to our first-line responders,” said Colorado Governor Jared Polis, a Democrat. “But it doesn’t meet our full needs.”Other governors and lawmakers have raised questions, saying they have no visibility into how supplies are distributed and the government has only limited power to direct it. The program appears to run largely outside the standard federal channels for competitive bidding, disclosure and transparency -- the government hasn’t documented how the products are sold, how prices are determined or which hospitals and other customers receive the supplies.Senate QuestionsThe House Oversight Committee is seeking answers, and Democratic Senators Elizabeth Warren and Richard Blumenthal wrote to the medical supply companies this week requesting details about their participation in Kushner’s program. “The American people need an explanation for how these supplies are obtained, priced, and distributed,” they said.The letter went to all six participating distributors: McKesson, Cardinal, Medline Industries Inc., Henry Schein Inc., Owens & Minor Inc. and Concordance Health care Solutions.McKesson issued a statement saying that its work with the government “reflects our commitment” to fighting the pandemic, but declined to answer specific questions. The other five companies declined comment or didn’t respond.“Providing free flights for supplies sold by the private sector may help, but it is not a substitute for a comprehensive federal response to this crisis,” Representative Carolyn Maloney, a New York Democrat who chairs the Oversight committee, said in a statement. She said her panel seeks to “understand how our taxpayer dollars are being spent and whether supplies are reaching those who need them most.”Project Airbridge has become a fixture at the president’s news conferences, where Trump regularly ticks off the number of flights it’s completed and the millions of pieces of gear it’s delivered. Its development is characteristic of an administration that’s shown little patience for the traditional processes and pace of government. Slow to prepare for the coronavirus outbreak, Trump turned to Kushner in March to try to quickly fill shortages of vital medical gear.In Trump’s telling, the nation is fortunate Kushner stepped in, because the program relieved a bottleneck causing shortages of protective gear at the front lines of the U.S. coronavirus outbreak, the largest in the world. The country has had more than 1 million documented cases of the disease and at least 61,000 deaths since February.Kushner’s program is not the only way medical supplies are imported into the country. The U.S. government has bought gear on its own, and states, hospitals, medical suppliers, retailers and others have placed their own orders. The president has encouraged states to source and buy most of their own medical equipment, and Kushner has described the federal stockpile as a backup.Suppliers and middlemen trying to keep hospitals equipped say that securing a flight out of China has become their biggest logistical hurdle, with a surge in demand doubling and even tripling prices for the limited number of cargo planes handling shipments.For about $69 million in flight costs so far, the Airbridge project has flown at least 746 million pairs of gloves, 71 million surgical masks and 10 million surgical gowns to the U.S. market, mainly on planes operated by FedEx Corp. and United Parcel Service Inc., according to the Federal Emergency Management Agency. The program has also brought in about 2 million thermometers, 768,000 N95 masks and 562,000 face shields.The Department of Justice said it would not mount an antitrust challenge to the “collaborative efforts” of the distributors “to address supply needs arising from the COVID-19 pandemic,” for which, DOJ said in a statement, the companies “should be applauded.”‘Young Geniuses’Airbridge is run out of FEMA, but its leadership includes what Trump has referred to as “military people and young geniuses.” That includes Kushner and his longtime friend, Adam Boehler, the chief executive officer of a new government agency created in 2018, the U.S. International Development Finance Corp. Navy Rear Admiral John Polowczyk, a logistics expert who is Trump’s top adviser on the medical supply chain, also helps direct the effort.Speaking Wednesday on Fox News, Kushner said he took “a custom-tailored approach” to Airbridge because the U.S. health care system is mostly run by private firms or non-profits, not government.“We created a control tower approach with the private company distributors in order to make sure that we can be as efficient as possible, and it’s been quite successful,” Kushner said.FEMA says the effort has slashed shipping time to two days, from the 30 to 40 days that a conventional sea shipment would normally take.Still, Airbridge accounts for only a small portion of the protective medical gear sold in the U.S., according to a person at one of the participating companies who spoke on condition of anonymity. The person said the company sells Airbridge supplies at prices consistent with what customers have previously paid.Polowczyk said the administration doesn’t want to try to direct distribution. “I’m not here to disrupt a supply chain,” he said on April 2, shortly after the program was struck up. “I’m putting volume into that system.”A spokesman for Medline Industries Inc., one of the distributors involved, told CNN that it sells some items transported by Airbridge at a loss.The White House declined to provide any information on prices charged by the distributors, nor did it offer any accounting of the products brought into the U.S. or their final destination -- even for the half of the products designated for areas the government considers hotspots.“Why isn’t there transparency?” Representative Ted Deutch, a Florida Democrat, said in an interview. Deutch and colleagues have introduced legislation that would require the White House to report on the program and other elements of the medical supply chain every two weeks.“If they’re so willing to hold press conferences touting the importance of putting together this program to bring a hundred cargo planes worth of equipment to the United States in this time of a global pandemic, then they ought to be willing to answer some basic questions about what’s coming,” he said. “How much it costs, where it’s going, so that we can make sure that every life that can be saved is being saved.”Some health-care executives are similarly concerned.“There does need to be more transparency here, because this is the sort of thing that people investigate and wonder about,” said Blair Childs, a senior vice president at Premier Inc., which helps 4,000 member hospitals purchase supplies. “What are they paying? Is it a competitive price?”FedEx, UPS ContractsUnder Airbridge, FEMA pays the cost of shipping and ensures that the U.S. gets the supplies quickly. The goods are transported by FedEx, UPS, Landstar System Inc. and Radiant Logistics Inc., according to FEMA. The agency doesn’t know the specific contents of shipments until the cargo is loaded, the agency says.FedEx received a $60 million sole-source shipping contract for the program while UPS was awarded a “not competed” contract for “warehousing and distribution” worth as much as $9.8 million, according to data compiled by Bloomberg Government. Total figures for the program remain unclear.Bonny Harrison, a FedEx spokeswoman, said the cost of the flights is consistent with market rates. The company’s coronavirus work includes flights of supplies, distribution and collection of test kits and shipment of other things like swabs, she said. UPS did not respond to a request for comment, Landstar declined comment and Radiant referred questions to FEMA.The program plans to shift cargoes to lower-cost sea freighters once the need for equipment isn’t as urgent, an administration official said. The person wasn’t authorized to speak publicly about Airbridge and asked not to be identified. Airbridge had completed 89 flights with 21 more scheduled, FEMA said, but the number of total flights has ticked down over the past week.Terms of the shipments can vary. If they’re ordered by the six participating medical supply companies, those firms retain control of the goods throughout, with the understanding that they have to sell half to hotspot regions. There are no other known constraints on the distributors.Under the agreement with participating companies, the U.S. government can take up to 20% of supplies it finds on its own, while the companies distribute the remaining 80%. Project Airbridge has flown in at least 18.6 million masks and respirators procured by FEMA, the agency says.Pence CallGovernors discussed Airbridge in an April 24 call with Vice President Mike Pence. While Polis has complimented the program, another governor said allowing private distributors to manage deliveries means the equipment isn’t necessarily going where it’s most needed.“The White House has not delivered what it has said it would deliver,” Illinois Governor J. B. Pritzker, a Democrat who has sparred with Trump, said on April 20. Allowing companies to distribute the supplies is “a far cry from delivering to the states so that we can distribute to, for example, a nursing home that has an outbreak.”A spokesperson for Washington Governor Jay Inslee, a Democrat, said the program “appears fairly small-scale,” and that the state doesn’t know how the distributors decide where to sell the supplies.Buyers in New Jersey have received about two million pieces of equipment through Airbridge, according to a person familiar with the matter.“To classify it as significant might be a bit of an overstatement,” Patrick Callahan, superintendent of the New Jersey state police, said Friday. “We’ll take everything we can get.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is the Current Crisis Helping or Hurting UPS?
    GuruFocus.com

    Is the Current Crisis Helping or Hurting UPS?

    If first-quarter results are any guide, there will be no bonanza Continue reading...

  • TheStreet.com

    UPS Rating Cut at BMO on Profitability Drop Due to Coronavirus

    UPS was downgraded to underperform by BMO Capital Markets, which cited a virus-related profitability decline at the package-delivery icon.

  • MarketWatch

    UPS partners with Michaels for contactless package pickup and returns

    Crafts retailer Michaels Cos. Inc. has partnered with United Parcel Service Inc. to provide locations for contactless package pickup and returns. These UPS Access Points will be at 800 Michaels stores. Customers call the store once they arrive and a Michaels worker will handle the transaction without the customer having to enter the store. Michaels has 1,200 stores across 49 states and Canada. Michaels stock has skyrocketed 87% for the month to date, but has plunged nearly 74% over the past year. UPS stock is down 8% for the last year. And the S&P 500 index has slipped 2.7% for the past 12 months.

  • Thomson Reuters StreetEvents

    Edited Transcript of UPS earnings conference call or presentation 28-Apr-20 12:30pm GMT

    Q1 2020 United Parcel Service Inc Earnings Call

  • UPS Faces Mix/Margin Challenges As COVID-19 Skews Shipping Choices
    Benzinga

    UPS Faces Mix/Margin Challenges As COVID-19 Skews Shipping Choices

    United Parcel Service Inc. (NYSE: UPS) has long planned for the day when business-to-consumer (B2C) traffic would become the truly dominant force in its volume mix. The extraordinary events of the past 60 days may have pulled that day forward faster than anyone could have expected.On April 28 the Atlanta-based shipping and logistics giant posted adjusted first-quarter earnings per share of $1.15, below analysts' consensus range of $1.21 to $1.24 per share. Adjusted net income fell to $1 billion from $1.2 billion in the first quarter of 2019. Revenue climbed to $18 billion from $17.2 billion, due mostly to strong demand from U.S. e-commerce customers and gains in healthcare volumes. U.S. domestic revenue, which makes up roughly two-thirds of UPS' overall volume, grew by 9.3% year-over-year (y/y), well above analysts' expectations. Ground volumes rose 7.2%, and next-day air volumes continued their impressive run, up 20.3% y.y. Both figures also exceeded most analyst expectations.The growth numbers, however, proved a double-edged sword. By the end of the quarter, B2C traffic, the main driver of e-commerce, accounted for an unprecedented 70% of UPS' global traffic mix, with the remainder being business-to-business (B2B) commercial traffic that came to a virtual standstill by quarter's end as governments' worldwide stay-at-home orders and social-distancing measures shuttered virtually all brick-and-mortar enterprises.In the U.S., UPS' first-quarter ratio of B2C to B2B traffic was about 55% to 45% in favor of B2C before the mandates went into effect, according to company estimates. In the past few years, the ratio has oscillated between a 50-50 split to 55%-45% toward B2C, the company said.B2B traffic is a higher-margin business for UPS because the company can deliver multiple packages per stop. By contrast, B2C deliveries are more costly propositions because, with the exception of densely populated urban areas, they typically involve one package per stop, and require drivers and vehicles to operate over longer distances. UPS paid the price for the massive shift to B2C in the quarter. In the U.S., its miles driven rose 10% y/y, while its daily stops jumped by 15%. Because of the presence of lower-cost rivals like FedEx Corp. (NYSE: FDX), the U.S. Postal Service (USPS) and Amazon.com, Inc., (NASDAQ: AMZN), it is almost impossible for UPS to implement B2C price increases to offset such sudden and dramatic cost spikes. UPS' ongoing multi-year program to re-engineer its U.S. distribution network is designed to boost the productivity of e-commerce package flows. This is expected to reduce costs and bolster profits without the need to push for price hikes. The full benefits of the initiative won't be felt for another two to three years, however.View more earnings on UPSThe first-quarter results illustrated UPS' current dilemma. Domestic profit margins fell by more than three full percentage points year-over-year, while adjusted operating income dropped to $401 million, a nearly $300 million decline. UPS executives sidestepped analysts' queries as to whether it will need to re-think its long-term B2C pricing strategy should its traffic mix permanently stay at or near such elevated levels.In all, UPS suffered a $140 million bottom-line hit due to disruptions from the coronavirus pandemic. It also received a $110 million higher-than-expected poke from self-insurance accruals from an increased frequency in accident-related claims. Company executives said they plan to beef up safety initiatives in response to the unfavorable trend.In addition, the small to midsize business (SMB) segment, probably UPS' top priority, was impacted as many SMBs could not pivot quickly enough to e-commerce models to offset the impact of the sudden changes in their regular ordering and shipping activities.UPS is doing what it can to mitigate any financial disruptions. It has slashed its 2020 capital expenditures by $1 billion to about $5.7 billion. It suspended its stock repurchase program, which the company said will save it an additional $783 million. UPS said it had $2.6 billion in operating cash flow and $1.6 billion in adjusted free cash flow at quarter's end. Executives said the company's liquidity position and overall financial condition remain strong, and it is committed to preserving its $4.04 per share annual dividend.The company's international segment posted $558 million in adjusted operating profit on revenue of $3.38 billion. In the 2019 quarter, adjusted operating income came in at $612 million on slightly higher revenue. After pronounced weakness in January and February, Asian export volumes rose 15% in March as Chinese factories resumed operations following the country's early fight with the coronavirus. Demand strength continued into April, UPS said. European activity remains weak, reflecting the continent's transition to a post-COVID-19 business environment, UPS said.Much of the end-of-quarter gains out of Asia came from end users' inventory restocking needs. Given the profound demand destruction in the U.S. and elsewhere, it is an open question as to how the segment will perform in the second quarter should the restocking need wane, analysts said.The UPS Supply Chain and Freight unit posted a $53 million y/y decline in adjusted operating profit on slightly lower revenue. Weakened economic activity depressed volumes at the unit's Coyote brokerage operations and at its UPS Freight less-than-truckload (LTL) business. The one exception was the unit's Marken healthcare logistics business, which posted double-digit gains in revenue and operating profit.As of 1:30 p.m. EDT on Tuesday, April 28, UPS shares were trading down 4.26% to $98.18 per share.See more from Benzinga * UPS Drone Deliveries To Help Retirees Practice Social Distancing * Will COVID-19 Accelerate The Adoption Of Autonomous Vehicles? * More Humanitarian Aid For US Pours In By Air(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • United Parcel Service Inc (UPS) Q1 2020 Earnings Call Transcript
    Motley Fool

    United Parcel Service Inc (UPS) Q1 2020 Earnings Call Transcript

    UPS earnings call for the period ending March 31, 2020.

  • UPS Misses on Q1 Earnings, Scraps 2020 EPS & Revenue View
    Zacks

    UPS Misses on Q1 Earnings, Scraps 2020 EPS & Revenue View

    Supply-chain disruptions due to the coronavirus pandemic dent UPS' Q1 performance.

  • Bloomberg

    You Saw The Earnings, But What Did CEOs Say?

    (Bloomberg Opinion) -- Tuesday was a jam-packed day for earnings across all sectors. In the industrial landscape, I paid closest attention to 3M Co., Caterpillar Inc. and United Parcel Service Inc., each a bellwether in its own right. You can find the specifics on earnings numbers in the companies’ news releases here, here and here, but in this time of unprecedented volatility, what CEOs are saying about how they are running their businesses is more telling. Here are my top takeaways:3M: Like many companies, 3M has suspended its 2020 guidance given the unpredictable nature of the coronavirus outbreak and rolling economic shutdowns, but in an effort to provide more transparency, the maker of Post-it notes is now going to provide monthly sales updates — broken down by geography and business segment — for the foreseeable future. This follows Emerson Electric Co.’s marathon two-hour-plus earnings call last week that featured presentations by not only the CEO and CFO but also the heads of its main business divisions. It’s nice to see companies setting the bar high on disclosures during this period of upheaval; hopefully others follow suit. The second quarter is expected to bring the worst of the virus impact, and 3M is cutting $350 million to $400 million of costs in the period to adjust to lower demand. Notably, however, much of that involves discretionary spending on things like travel, external services and advertising, rather than cuts to payroll, which 3M says it’s trying to minimize. It’s using furloughs, but they’re paid leaves, and in other cases, employees are being asked to take vacation. Bear in mind that 3M had announced a restructuring plan in January, separate from the coronavirus, that would see it eliminate some 1,500 jobs, so it’s hardly a corporate saint. But given its sales of N95 respirators, you’d be hard-pressed to find a company that better understands the toll the virus is taking, and 3M seems to legitimately want to to do the right thing by its workforce. Like others in the industrial sector, the company also appears wary of cutting too deep and being unprepared for an eventual recovery. 3M is clearly conscious of its image after having its name dragged through the mud by President Donald Trump and billionaire Mark Cuban over production and sales of N95 respirators. The company devoted an entire slide in its earnings presentation to the topic. 3M has already doubled global N95 output to 100 million per month and is investing in capacity to double that yet again; it’s directed 90% of production to health-care workers, with the remainder going to other critical industries such as food production; and the company has cut loose some distributors who acted “unethically” and is pursuing numerous lawsuits amid allegations of price gouging. The company also made a point of highlighting its 76 plants and distribution centers across the U.S. in an apparent nod toward calls for a revival of America’s manufacturing might. “3M has never left our home country,” CEO Michael Roman said on the call. CATERPILLAR : The maker of bulldozers and backhoes is also holding off on sweeping job cuts, and it made an interesting argument as to why that’s the case. Caterpillar held headcount as well as administrative, manufacturing and research spending relatively flat from 2016 to 2019, even as sales increased some 40%. That means there’s less to cut when a downturn hits, CEO Jim Umpleby said on a call to discuss the company’s first-quarter results. It also means Caterpillar doesn’t have to use up cash to pay out large amounts of severance, and “cash is obviously king in this environment,” Umpleby said. So the overall effect is that margins and cash flow will be higher than historically, even though the chaotic nature of the coronavirus outbreak and supply-chain disruptions will likely prevent the company from reaching its targets on those metrics. While Caterpillar has suspended share buybacks and is delaying some R&D and capital expenditure projects with less visible returns, it made the decision to continue investing in growing its services business and expanding its product offerings because it continues to view those initiatives as key to its longer-term profitability. That’s a positive sign that the coronavirus hasn’t completely zapped CEOs’ appetite for investment.UPS: The good news for the package-delivery company is that its services have never been more important as store shutdowns and fear of contagion drive more consumers to online ordering. The bad news is that the spike in sales is coming at the expense of its profit margin. Why? It’s partly due to the sporadic nature of residential deliveries, which  makes the process more expensive than shipping to businesses, and also because of the increased expenses involved in keeping workers safe. The knock-on costs of the coronavirus — including the expense of doing extra cleaning and providing workers with protective gear — amounted to $140 million in the first quarter. That’s an important data point to keep in mind as companies across less essential industries start bringing people back to work. Like Caterpillar, UPS will maintain investments in strategic priorities such as automation to help bolster its longer-term profitability. An expected $1 billion reduction in capital expenditures is going to come largely from a rethink of certain facilities projects and a delay in vehicle purchases. The company is also working with its customers when it comes to investing in their supply chains as the coronavirus exposes the flaws in far-flung networks. In many cases, that's going to mean a shift to third-party order fulfillment and logistics services. This is just an acceleration of a reappraisal that began with the U.S.-China trade war, UPS CEO David Abney said on the earnings call. A lot remains unknown about the coronavirus pandemic, but the messaging from most industrial CEOs at this point has focused on staying the course, whether that means maintaining most of the workforce or following through on investment commitments. UPS's Abney may have put it best: “I don't know that we'll ever get back to what we call the old normal, but we're not ready to declare what we see today as a new normal, either.”This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.