UPS upgrades earnings outlook; to streamline US structure
UPS announced (08-Jan-2010) that it expects to exceed its previously announced estimate for 4Q2009 earnings, now anticipating a range of USD0.73 to USD0.75 per diluted share. The company previously projected earnings of USD0.58 to USD0.65 per diluted share for this period. The company will provide additional details during its 4Q2009 earnings call on 02-Feb-2010. UPS also announced it is streamlining its US domestic management structure, reducing the number of Districts and Regions in its US small package operation from 46 to 20, resulting in the elimination of approximately 1,800 management and administrative positions across the country. Normal attrition will minimize some job displacements, and approximately 1,100 employees will be offered a voluntary separation package. As a result of the restructuring, UPS expects to incur a one-time charge in 2010 that will be offset by cost savings in the US small package business. [more]
UPS: "The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management. However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses", Kurt Kuehn, CFO. Source: UPS, 08-Jan-2010.