Shares of FedEx, UPS, Deutsche Post DHL and TNT increased in April after their recovery in March,CEP-Research analysis shows.
In April, FedEx shares experienced the biggest rise with a 20.04% increase as of 1 Maycompared to 31 March. TNT and DPWN shares rose moderately by 8.39% and 7.31% respectively while UPSshares slightly increased by 4.72%.
In March, shares of the four integrators recovered from the dramatic fall in February.UPS shares experienced the biggest rise with a 16.33% increase as of 31 March compared to 27February. TNT shares also rose considerably by 10.71%. Deutsche Post DHL recorded a moderateincrease of 5.8% while FedEx shares rose slightly by 1.97%.
Over the course of April, Deutsche Post DHL shares increased from €8.11 to €8.75. In thefirst two and a half weeks of the month, the company’s shares continuously rose by 16.6% but thendeclined steadily by 15% in the second half of April. Positive developments driving up the shareprices included significant growth in south-east Asia road services with a 79% rise in volumes inMarch, marking the largest month-on-month growth rate in 32 months. But when DHL ended itslong-running talks with UPS over US airlift capacity, shares slumped 5% the next day and declinedfurther as Deutsche Post DHL unveiled a sharp drop in volumes and operating profits in the firstquarter of 2009.
Similar to DHL, TNT shares showed a moderate increase from €12.88 on 31 March to €14.06 on 1May. Shares experienced continuous minor ups and downs throughout April. There were a series ofactivities contributing to the positive development of the shares. In the USA; TNT teamed up withthe leading LTL freight transportation company Con-way Freight to link their respective roadnetworks in Europe and the USA. In Asia, TNT Express recorded double-digit revenue growth of itsEconomy Freight service officially opened its expanded regional hub in Singapore for more handlingcapacity and direct connections between its Asia road network and freighter flights to China andEurope. In Brazil, TNT signed an agreement to acquire Expresso Araçatuba Transportes e LogÃsticaS.A., a key delivery partner of TNT Mercúrio in Brazil’s Central West and North regions since 2001.Another factor contributing to rising shares was a slower decline in the company’s express volumesduring the first quarter of this year compared to the sharp drop in volumes during the second halfof last year.
Recording the biggest share price rise compared to other integrators, FedEx showed a dramaticincrease from $44.08 on 31 March to $55.13 on 1 May. In the first two days, shares rose sharply by10% to fall again on the announcement that 1,000 FedEx employees were laid off under itscost-cutting plans announced in mid-March to save a further $1 billion in response to the marketdownturn. In the second half of the month, shares recovered again showing a slight upward trendwith some minor ups and downs in the end of April. Positive developments boosting the company’sshares included the launch of FedEx Express International Economy service in India to expand itspresence in the country and the announced integration of the group’s subsidiary CaribbeanTransportation Services to increase synergies and improve customer service.
Showing the lowest increase of all the integrators, UPS saw its shares slightly increase from$49.22 on 31 March to $51.66 on 1 May. Shares showed a rising tendency in the first week of themonth but then stagnated more or less in the middle of April with a slight downward trend in themonth. Business activities in the first half of the month included a new door-to-door servicebetween the USA and Mexico to expand the company’s ground freight network. But the announcementabout UPS operating profits declining nearly 52% in the first three months of 2009 drove the sharesfurther down. The slump was slightly compensated by the company’s agreement with the Slovenianlogistics group Intereuropa in the end of April under which UPS will buy Intereuropa’sinternational package business for an undisclosed sum.
