FedEx and UPS shares rise in February as DHL and TNT drop

Shares of US integrators FedEx and UPS rose last month while Deutsche Post DHL and TNT shareprices dropped after an overall fall in January and increases in December and November 2009,

FedEx shares experienced the biggest increase in February with an 8.18% rise compared to aslight 1.68% increase for UPS as of 26 February compared to 29 January. TNT experienced the biggestdrop of 8.69% while Deutsche Post DHL showed a more moderate fall of 5.46%. In January, shares ofTNT (-2.53%), Deutsche Post DHL (-6.3%), UPS (-0.7%) and FedEx (-8%) had all fallen.

Over the course of February, Deutsche Post DHL shares dropped from €12.64 (January 29) to €11.95(26 February). Throughout the month, shares experienced continuous ups and downs with a slightdownward tendency at the end of the month. The company, which will announce 2009 results on March9, improved international road freight services in south-east Asia through bonded and non-bondedcross-border solutions for intra-regional and international trade flows but there was little othermajor news.

TNT shares fell sharply from €20.82 on 29 January to €19.01 on 26 February. Shares rose slightlyat the start of the month after a trading update in which it was announced that TNT Express hadrecorded improved volumes and profits in Q4 2009. There was also a rise after TNT announced plansfor strong growth in India. During the second week, shares experienced some minor ups and downsrising again in the third week. On February 22, the company announced 2009 results with a sharpfall in profits but presented a slightly more upbeat outlook for this year, forecasting higherexpress volumes, revenues and profits. Despite this positive outlook, shares fell the next day andshowed a slightly downward trend until the end of February.

FedEx shares recorded the biggest increase in February compared to other integrators from $78.35to $84.76. During the first week, shares declined by 5% but rose again 3% when media reportsemerged about FedEx being in talks with Indian carrier Jet Airways to create a joint cargo airline.Shares rose a little further after the announcement of shortened transit times between Bulgaria andvarious European markets. There were no other important developments at the company last month. Inthe second half of February shares rose continuously with a clear upward trend at the end of themonth.

UPS recorded a slight share price increase in February from $57.77 to $58.74. Right at thebeginning of the month, UPS announced a sharp rise in net profits for the fourth quarter of 2009following strong international volumes driven by a boom in Asia exports, and gave a cautiouslyoptimistic outlook for better results this year on the back of an improving world economy. However,the share price did not change significantly the next day with only a slight increase. In thefollowing days, shares dropped slightly to rise again after UPS inaugurated its $180 million newAsia Pacific Hub at Shenzhen International Airport in China with new flights. The next day, sharesdropped again after UPS announced plans to furlough at least 300 of its 2,800 airline pilots whilesearching for a solution with the pilots’ union that would avert or mitigate the temporary layoffsbefore they take effect. In the second half of February, shares started to rise slightly showing acontinuous upward trend at the end of the month. A positive development was the opening of the new$30 million distribution centre at Calgary International Airport (YYC), creating over 400 new jobsin the region.