United Parcel Service has reported a 56 per cent drop in first-quarter earnings to US$718 million from $1.49 billion in the year-ago quarter and warned the second quarter will also be difficult. Revenue was off 13.7 per cent at $10.9 billion with the continuing deterioration in global economic activity resulting in decreased revenue and profitability in all business segments, according to UPS. The company added that it took an impairment charge on its entire fleet of 44 DC-8 aircraft for a … [Read more...] about UPS sees 1Q profit plummet 56%
Express
FedEx pulls 14 aircraft from service
FedEx Corp is pulling capacity as the ongoing downturn hits its global express business, with the US-based carrier announcing in a notice to the Securities and Exchange Commission earlier this week that it will remove 10 Airbus A310-200s, four Boeing MD10-10s from service between now and the end of the quarter ending May 31. "This decision reflects management's ongoing efforts to optimise the company's express network in light of continued excess aircraft capacity due to weak economic conditions … [Read more...] about FedEx pulls 14 aircraft from service
Semiconductor decline may be moderating
Global semiconductor sales declined again in February, down 30.4 per cent year-on-year to US$14.2 billion, but there is some indication the rate of decline is moderating from the fourth quarter of last year, according to the Semiconductor Industry Association (SIA). "The global semiconductor industry is going through one of the steepest corrections in its history," said George Scalise, SIA president. "While it would be premature to conclude that the sales decline has hit bottom, there are some … [Read more...] about Semiconductor decline may be moderating
Deutsche Post potential Royal Mail bidder
Germany's Deutsche Post has emerged as a potential bidder for a stake in Britain's Royal Mail, as the UK government attempts to partially privatise the state-owned postal company. The parent of express and logistics giant DHL has joined a short list including TNT and CVC, a private equity company already active in the European postal industry. … [Read more...] about Deutsche Post potential Royal Mail bidder
US freight index shows further March decline
A key measure of industrial shipping in the US has shown a further 3.5 per cent decline from February to March after offering a glimmer of hope in February when it showed its first fractional gain in six months. The Cass Freight Index for shipments declined 22 per cent in March from the same period a year earlier. Freight transportation spending also turned negative after a slim month-to-month gain in February. The measure of expenditures fell 2.1 per cent from February to March and was down a … [Read more...] about US freight index shows further March decline
SIA/Emirates ordered to cooperate with investigation
Singapore Airlines and Emirates have been forced by the Australian Competition and Consumer Commission (ACCC) to cooperate in the ACCC's investigation into price-fixing after a Federal Court judge ruled that air cargo bound for Australia from overseas was not beyond the definition of a "market in Australia" under the Trade Practices Act. The airlines also lost the argument that the ACCC had failed to consider the burden imposed on the airlines in providing the documents, which cover a six-year … [Read more...] about SIA/Emirates ordered to cooperate with investigation