With an increase in online shopping, one may think that companies such as UPS and Fedex would, too, be on the rise, but that isn’t always case. Well, for UPS, anyways.
In his article UPS Beats Street in 4Q, Hikes ’12 Outlook, Matt Egan of Fox Business online, analyzes a decline within The United Parcel Service.
Matt begins: “ Shipping giant UPS revealed a 29% slump in fourth-quarter profits on Tuesday, [January 31, 2012], due to pension accounting changes, but the economic bellwether’s adjusted earnings managed to top Wall Street’s expectation.” On other words, there was a slump, because of administrative problems within the company, but there’s not a lot of grief due to the profit of $1.03 billion a year earlier.
In addition to that year earlier and a 29% slump because of pension difficulties, UPS still managed to pull in an increase with international revenues by 3.5% or $3.15 billion.
Finally, UPS’s chief financial officer, Kurt Kuehn said, “ Looking ahead to 2012, our expectations are for mixed economic growth around the world, with modest improvement in the U.S. However, UPS projects another strong year of earnings.”
Similarly to most companies in the world, there’s always a growing and declining quarter, and UPS, a financially stable company, has and will continue to experience declines and growth.
Article: http://www.foxbusiness.com/industries/2012/01/31/ups-posts-higher-profit-boosts-view/
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