While UPS and UPS Freight Teamsters take concessions, the profit haul for the company continues. UPS reported fourth-quarter profits of $1.2 billion and says profits will top $5 billion in 2014.
The media is full of sympathetic stories about how UPS profits are, “falling short of expectations.” And it’s true that UPS’s fourth quarter profits were lower than originally expected because of the much-publicized problems at peak.
But before you pull out a brown hankie and cry for UPS management, consider this. Even when management bungles the most important business time of the year, the company still makes $1.2 billion in profit in just three months. That’s after taxes.
For the year, UPS made $4.5 billion in profits after taxes. And the company announced today that it projects that profits will top $5 billion in 2014.
The company’s freight-forwarding business is down—but not where Teamsters are doing the job. UPS Freight revenues grew to $2.882 billion.
Before contract negotiations began, Ken Hall vowed, “The more they make, the more we take.” Instead, working Teamsters will remember 2013 as the year of contract givebacks and the most miserable peak season ever.
It’s not all bad news. 2013 is also the year that UPS and UPS Freight Teamsters showed we can fight back. Members turned down the national UPS Freight contract and nearly voted down the national UPS agreement while voting down a record number of supplements.
Hoffa and Hall couldn’t even figure out how to use that leverage.
UPS Teamsters in New York Local 804 took a different tack. They said NO to information brownouts and organized a contract campaign. They won a $400 pension increase (including at $25 & Out), 150 new full-time jobs and grievance procedure reform. When members voted down the first offer, the bargaining committee, including rank-and-filers, went back to the table and won additional improvements.
UPS knows how to make profits. We need Teamster leadership that will make UPS deliver for working Teamsters too.
October 25, 2013: UPS announced third quarter profits of $1.1 billion today. Can anyone explain why Hoffa and Hall gave the company healthcare cuts, a longer progression and other contract givebacks?
The company’s third quarter profits are up a staggering 134 percent. UPS made $469 million in the third quarter last year, including a $559 million charge on their books for pension adjustments.
Working Teamsters are still fighting for improvements in seven contract supplements and riders that aren’t approved. But investors are getting theirs right now. The company paid $1.7 billion in dividends this quarter, a 9 percent increase over last year.
Domestic package operations continue to lead the way with operating profits up by 16%.
In the UPS Freight and Supply Chain segment, profit went up 7%, to $201 million. Revenue in the segment was down slightly from the prior year period to $2.25 billion, as growth in UPS Freight was offset by declines in the Forwarding business.
Teamster members continue to deliver higher earnings and profits. Will Hoffa and Hall make UPS deliver for the 75,000 Teamsters still working under expired supplements and riders?
July 23, 2013: Today, UPS announced after-tax profits of $1.07 billion for the second quarter. The money is there for a better contract.
In the first six months of the year, UPS made $2.11 billion. UPS expect profits to grow in the second half of the year by as much as 13 percent.
Wall Street is crying that UPS profits are slightly down from the same period last year. The dip in earnings will cost stockholders 2 cents a share.
Only at UPS do they complain when profits are “only” a billion dollars a quarter.
Management blames the dip in profits on the shift away from Next Day Air to lower-priced services and slow international freight forwarding business.
But in the U.S., revenue was up both in package and at UPS Freight.
A few other figures that Wall Street is not reporting on this morning: Under the tentative agreement, 140,000 Teamsters and their families will pay more out of their pockets for healthcare after Hoffa and Hall toured the country and told Teamsters, “No way, we won’t pay!”
With UPS’s profits for 2013 projected to be $4.5 billion again, the money is there to maintain members’ health benefits and improve the 18 supplements that were voted down by UPS Teamsters.
April 25, 2013: On the same day that UPS is looking to ink a tentative agreement on a new contract, the company announced its profits are on the rise.
UPS’s after-tax profits for the first quarter rose to $1.04 billion. This is up from $970 million made during the same period last year.
For the year, UPS is projecting to haul in $4.6 to $4.8 billion in after-tax profits.
UPS made this announcement in a conference call with investors and analysts this morning.
This afternoon, UPS hopes to wrap up a tentative agreement on a new national master contract with the Teamster National Negotiating Committee. Some supplemental agreements are still being negotiated.
Revenue increased to $13.43 billion, up from $13.14 billion last year. Daily package volume in the U.S. grew 4.4 percent.
UPS Ground continued to be the fastest growing part of the company’s business. Teamster drivers delivered 531,000 more packages per day in the first quarter.
The growing profit numbers are good news for UPS CEO Scott Davis who made $9.8 million last year. What will they mean for working Teamsters?
UPS Teamsters need to look at the proposed new deal carefully to see how higher profits and growing volume translate into Teamster wages, benefits, full-time job creation, and protections from harassment and excessive overtime.
Click here to read a press report on UPS’s profits.
Click here to read UPS’s report to the press on its earnings.
In another sign of UPS’s fat profits, the company once again hiked payments to stockholders. Cash dividends have tripled since 2000.
The UPS Board of Directors declared an 8.8% increase in stock dividends on Feb. 13. UPS also announced a $10 billion corporate stock buy-back, much larger than had previously been announced.
UPS profits have stayed up in a down economy. The company made $4.38 billion last year alone. Shareholders are reaping the benefits. Dividends have steadily increased and tripled since 2000.
CEO Scott Davis stated that “During 2012 we generated almost $5.4 billion in free cash flow.”
It’s time for some of that cash to flow to the UPS Teamsters who are producing these profits.
Source: UPS Press Release
January 31, 2013: UPS announced record Fourth Quarter and Annual adjusted earnings in a company statement today.
UPS made profits of $2.05 billion excluding a big one-time pension accounting charge.
The company’s fourth quarter profits looked like a loss thanks to an accounting gimmick. UPS took a massive one-time $3 billion “non-cash charge” on company pension and benefit plans. This charge did not affect the company’s cash flow or benefits paid to participants.
Click read the rest for more details on UPS profits. Read the rest …
October 24, 2012: UPS released its third-quarter financials yesterday, and has upgraded its projected profits for 2012.
Once again, UPS Teamsters drove the company’s revenue. International package volume dropped by 3.7% or 400,000 packages a day. U.S. package revenue increased $94 million over last year, driven by a 3.7% gain in daily volume. 
UPS said its overall profit for the third quarter would have been about $1.66 billion, down just a fraction from $1.67 billion last year. This comes to after-tax profits of $1.03 billion. 
Instead, UPS reported after-tax profits of $469 million. That’s because UPS deducted a one-time $559 million charge for restructuring Teamster pensions in New England.
This led to misleading headlines in some press reports, like “UPS reports 56% drop in third quarter profits.” 
No doubt, UPS managers and sups will try to play this number up. It’s contract time after all.
The truth is the New England pension deal and one-time charge will deliver huge savings for the company over time. Under the same deal, UPS’s contributions to Teamster pensions in New England will be frozen at the same level for the next ten years.
While UPS is reporting the $559 million charge now, they are actually paying it off over the next 50 years! For more on the New England pension deal, click here.
On a conference call with investors and analysts, UPS’s chief financial officer, Kurt P. Kuehn, said the company was raising its profit projections for the year.
“Given our performance and greater confidence in fourth-quarter execution, we have enhanced our full-year earnings guidance,” Kuehn said.
UPS made just under a billion dollars in the first quarter of 2012. Brown reported profits of $970 million for the first three months of the year, up 6 percent from last year.
Who delivered most of these profits? Working Teamsters, that’s who. UPS’s domestic revenue was up 6.1 percent. UPS’s International operations grew at a slow pace, just 2.3 percent, disappointing analysts.
Volume is up, but instead of meaning more Teamster driving jobs, it has meant excessive loads and production harassment.
E-commerce packages are increasingly being subcontracted to the post office—another drain on full-time job creation.
UPS made $4.2 billion in profits after taxes in 2011 Profits could top $5 billion this year.
“I hope they make $10 billion,” Ken Hall, the International Union’s chief negotiator at UPS, told delegates at the Teamster Convention. “Because the more they make, the more we take when it comes to negotiations.”
Theoretically, that should be true. But UPS was making record profits in 2008 when the International Union gave away record concessions, then failed to enforce the contract since then.
UPS Teamsters are getting together to Make UPS Deliver a fair contract—with no givebacks. Click here to find out more about the Make UPS Deliver campaign.
United Parcel Service CEO Scott Davis got a whopping 21.62 percent raise to $13.05 million last year according to a company filing with the SEC.
Davis made $10.73 million in 2010 bringing the hike in his total compensation to $2.3 million.
Davis was paid a base salary of $1.02 million, $9.45 million in shares, stock options worth $450,807, and a $566,996 bonus. Davis also got $1.51 million via an increase in the value of his pension and deferred compensation.
Higher pay, increased pensions? We need to make UPS deliver the same for working Teamsters at contract time.
UPS just made its biggest acquisition ever, buying TNT Express for $6.8 billion. With contract negotiations on the way, the UPS-TNT deal makes it more important for the Teamsters to coordinate with unions on a global scale.
United Parcel Service Inc. said Monday it has agreed to buy TNT Express NV for $6.77 billion (€5.16 billion) in a deal supported by TNT’s boards.
UPS’s cash offer of €9.5 ($12.51) per share for TNT — Europe’s second-largest express delivery company behind DHL — comes a month after TNT management turned down a €9 per share offer. The companies remained in talks, assisted by a strengthening dollar.
Click here to read more from the Associated Press.
The economy made be down but UPS’s profits continue to go up.
Company execs announced that UPS made $1.04 Billion in profits in the third quarter. Brown’s profits increased by 5 percent compared to the third quarter last year and by 89 percent over its third quarter profits in 2009.
UPS Chief Financial Officer Kurt Kuehn bragged to investors that UPS Teamsters will continue to get “below-inflation increases in wages” under the concessionary contract negotiated by Hoffa and Hall in 2008.
UPS made $1.06 Billion in profits after taxes from April to June this year. That’s an increase of 26 percent (or more than $150 million) over the $845 million in profits the company made during the same period last year.
UPS executives announced that the company hauled in $885 million in profits after taxes in the first quarter of 2011. That’s a 66 percent increase from the $533 million in profits Brown made in the first quarter of 2010. Revenue jumped 7 percent to $12.58 billion. Read the rest …