July 24, 2012: Headed into contract negotiations, UPS continues to make big profits, especially in the package and freight divisions where Teamster members work.
Today UPS announced that it made $1.12 billion in profits after taxes for the 2nd Quarter on $13.35 billion in revenue. Not a bad haul for three months.
Shareholders made $1.15 per share, a 7.5 percent improvement over last year.
The company's mega profits weren' enough for Wall Street. Analysts don't like that UPS downgraded its numbers for the rest of the year over worries about the global economy.
As we move toward contract negotiations, management will use that report to warn that the economy is slowing down. But the bottom line is that profits are up and management still predicts to make more than last year’s $5 billion.
Some highlights from the quarterly report:
- Operating profit for U.S. domestic package jumped more than 12 percent.
- Package volume is up 3.5 percent. Next Day Air and Second Day Air are up 5 percent and 8.6 percent respectively.
- Average revenue per package increased 0.6 percent. Not only are we delivering more packages; the company is making more money on every package we deliver.
Ken Hall, who will be leading contract negotiations with UPS, said the company would hire more drivers as volume increased. Well, volume is up. And so is excessive overtime. It's time for UPS to create the full-time jobs we're owed—both driver and 22.3 positions.
Make UPS Deliver at Contract Time
U.S. domestic package business is responsible for 63 percent of the company's profits. Those profits are on the rise and will easily top $5 billion this year. Keep those numbers in mind as our union heads into contract negotiations this year.
There's no reason to give UPS the early settlement they want unless they agree to a strong contract.
You can help Make UPS Deliver the contract we deserve. Click here to find out how.
Click here for a detailed report on the company's earnings from Market Watch.