UPS said that winter storms had "suspended or sharply curtailed operations" in Maine, Rhode Island, New Hampshire, Vermont, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Connecticut, and North Carolina.
J.P. Morgan's equity research upgraded its UPS shares from neutral to overweight based on a belief that the company would be one of the first beneficiaries of economic recovery.
Diluted Earnings per share were down 22% from a year ago to a total of 83 cents per share in their current Q4. Scott Davis, the company's CEO, said worldwide shipping activity has faced a sharp decline.
Merck has selected UPS to manage much of its U.S. distribution as well as to provide package transportation services. Subsidiary UPS Supply Chain Solutions will take over control of two of Merck's distribution centers.
UPS announced that 2Q08 expected earnings have been reduced from $0.97-1.04/share to $0.83-0.88/share. Analysts had been expecting $0.98 EPS. This lowered guidance is especially troubling for UPS as they forecast lower volume, which means decreased ability to pass fuel costs on through to consumers.
In a sign that Deutsche Post's American expansion is rapidly deteriorating, it has transferred the DHL air business to UPS. UPS will receive $1 billion in cash.
UPS released its fourth quarter 2007 earnings results on Januarry 22, 2008. The company had a net loss of $2,576 million and negative earnings per share. A significant loss on a pension hurt the company's earnings during this period.
Share price approached the previous summer's high after UPS announced that it would issue $500 million in bonds. Rate increases announced November 17th may also have contributed to the share price increase.
UPS was the most heavily weighted stock in the S & P 500 on July 25th. Share price fell more than 15% in two days after UPS announced that third quarter earnings would fall short of expectations. UPS attributed recent and expected shortfalls to slowing in the U.S economy.