UPS United Parcel Service streamlines investments
Declining turnover and results of UPS in the first quarter of 2009 As a response to the continuously declining global economic activities the UPS Group (United Parcel Service) streamlines its investments and realises additional cost-cutting measures. As the Executive Management announced last week capital expenditures for 2009 will be reduced by another USD 200 million to a total sum of less than USD 2 billion. However, the company continues to make strategic investments such as expanding its Worldport facility in Louisville, building a new air hub in Shenzhen (China) and opening new healthcare distribution facilities in Europe and Puerto Rico. Between January and March UPS generated a turnover of USD 10.9 billion (1st quarter 2008: USD 12.7 billion). The operating profit dropped from USD 1.49 billion in the first quarter 2008 to USD 718 million. The U.S. Domestic Package segment achieved a turnover of 6.95 billion and an operative profit of USD 384 million. International Package business recorded a turnover of USD 2.24 billion and an operating profit of exactly USD 294 million. According to the group’s statement forwarding and logistics business of the UPS segments Supply Chain and Freight had only to face a minimal decrease of the profit margin. Turnover in the first quarter of 2009 amounted to USD 1.75 billion while the operating profit was USD 40 million. Quelle: Österreichische Verkehrszeitung |