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The numerous industries that make up the world of freight have undergone large change over the previous a number of a long time. Every week, FreightWaves explores the archives of American Shipper’s almost 70-year-old assortment of delivery and maritime publications to showcase attention-grabbing freight tales of way back.
United Parcel Service Inc. stated its airline division, UPS Airways, has signed an settlement with Boeing Co. to take supply of 13 MD-11 widebody freighters over the following 4 years.
The deal additionally contains choices for 22 extra MD-11s, which if exercised might carry the worth of the settlement to greater than $2 billion, UPS stated.
The 13 agency orders will probably be delivered beginning subsequent 12 months. The choices can be delivered starting in 2005. Boeing’s Airplane Companies unit will convert the plane from passenger to freighter configuration. UPS will use the planes to broaden its worldwide enterprise, significantly on long-haul flights from the USA to Europe and Asia.
The deal was introduced at an investor convention final week, the place UPS executives additionally laid out monetary expectations for the approaching quarter and subsequent 12 months.
UPS expects peak fourth-quarter enterprise to supply development in keeping with annual expectations. Barely weaker demand is anticipated this 12 months in comparison with final.
UPS plans to attain income development of about 10% subsequent 12 months, with earnings-per-share development within the mid-teens and a return on fairness of about 30%.
Worldwide export visitors ought to proceed to develop within the double digits. Worldwide home development will probably be within the higher single digits, UPS stated.
UPS Logistics will proceed to put up 30%-plus quarterly income development charges and will hit a few 5% to six% revenue margin within the 2002-2003 timeframe. Service components logistics will probably be a key section. Logistics would be the most vital “development driver” within the non-package section, UPS stated.
UPS additionally stated it plans to broaden the monetary companies enterprise, together with commerce logistics financing, subsequent 12 months.
“While you have a look at the UPS of 2000 — a logistics firm, an digital commerce firm, a consulting firm and a monetary companies firm — it’s apparent we’re not simply delivering packages,” stated Jim Kelly, chairman and chief government officer.
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