Shares of United Parcel Service (UPS) are on the move after the company this morning positively pre-announced Q4 earnings above its own and analysts’ expectations. The company also said it will cut 1,800 jobs.
The company now anticipates Q4 profit of 73 cents to 75 cents per share, above a prior view of 58 cents to 65 cents and above the 63 cents analysts have been modeling. Both domestic and international activity picked up, and though there were some “cost saving” measures in there, management said it still expected a “gradual economic recovery with improvement more evident as 2010 progresses.”
The company is “streamlining” its U.S. management structure, hence, 1,800 administrative positions will be cut across the country. 1,100 employees will be offered voluntary leave.
The company expects to offer full Q4 results on Feb. 2.
UPS stocks is up $2.52, or 4%, at $59.90 but traded as high as $61.13 this morning.
Other transport firms are up as well, with Fedex (FDX) rising $1.50, or 1.8%, to $84.45, Arkansas Best (ABFS) up 20 cents, or 0.7%, at $28.01, Old Dominion (ODFL) up 70 cents, or 2.4%, at $29.72, though Con-way (CNW) is down a penny at $33.08 and YRC Worldwide (YRCW) is about unchanged at 85 cents.
No comments:
Post a Comment