Shares of Deutsche Post DHL, FedEx, TNT and UPS continued to rise in December 2009, following anincrease in November, after a drop in October and continuous increases in recent months,
CEP-Research analysis shows.In December, TNT shares experienced the biggest rise with 10.56%, closely followed byDeutsche Post DHL with a share price increase of 8.18% as of 30 December compared to 30 November.Shares of UPS rose slightly by 1.24%, followed by FedEx with an insignificant price increase of0.85%. In November, shares of FedEx (16.18%), Deutsche Post DHL (8.43%), UPS (7.06%) and TNT(6.86%) had all risen.
Over the course of December, Deutsche Post DHL shares rose from €12.47 to €13.49 on 30December. In the first week of the month, shares rose slightly and remained more or less on thesame level in the second week. In the last two weeks of December, shares rose again with some minorups and downs. Developments negatively affecting DHL Express included the announced plans to selloff its heavily loss-making French domestic business to financial investor Caravelle and generalair freight capacity shortage on key routes between Asia and Europe. Positive developments includedplans to create 390 new jobs at DHL Express air cargo hub in Leipzig despite the global financialcrisis.
TNT shares rose at a double-digit level from €19.32 on 30 November to €21.36 on 30 December.In the first two weeks of December, shares rose continuously by 8% with some minor downs. In thethird week, shares dropped slightly to rise again in the end of the month. The most importantdevelopment in December was the announcement of TNT’s new five-year strategy – “Vision 2015”. Itfocuses on day-definite deliveries of parcels and freight, a new business model for its Dutch mailbusiness and a partial withdrawal from some European mail markets. As part of the strategy, TNTwants to target new markets such as standard parcels, B2C deliveries and freight transportation forgrowth over the next five years in response to lower customer demand for premium express services.
FedEx shares recorded the most insignificant share price increase compared to otherintegrators from $84.45 on 30 November to $85.17 on 30 December. In the first half of the month,FedEx shares rose 6% with continuous ups and downs. But in the second half of December, sharesdropped again by 9% in just one week and then showed a slight upward trend in the last few days ofthe month. In mid-December, FedEx released its Q2 results showing a clear upturn in US domestic andinternational express volumes. However, FedEx Express revenues dropped 13% while operating profitfell 36% largely due to a mix of lower fuel surcharges, lighter shipments and lower yields.
UPS showed a slight share price increase in December with shares going up from $57.47 to$58.18. In the first ten days of December, UPS shares remained more or less on the same levelthroughout the month with continuous ups and downs. An important development in the beginning ofDecember was the opening of a $70 million expansion of UPS Toronto distribution hub to boostCanadian trade and facilitate international commerce between Canadian businesses and their overseascounterparts.
