Shares of TNT and UPS rose significantly last month but FedEx and Deutsche Post DHL sharesshowed a moderate drop, CEP-Research analysis shows.
In April, TNT shares experienced the biggest increase with an 8.71% rise closely followed by UPSwith 7.34%. Deutsche Post DHL shares dropped 4.75% followed by FedEx with a 3.63% fall.
This mixed result follows a strong share price increase for all integrators in March and mixedtrends over the last few months. In March, shares of TNT (+11.68%), FedEx (+10.19%), UPS (+9.65%)and Deutsche Post DHL (+7.53%) had all risen. In February, FedEx and UPS shares had risen whileDeutsche Post DHL and TNT share prices had dropped.
TNT shares recorded the biggest increase in April from €21.23 on 31 March to €23.08 on 30 April(ahead of the May 3 release of Q1 results). In the first week of the month, shares started to risejumping 6% in one day on TNT’s announcement that it may split off its declining mail business inorder to focus on growth markets for its express activities. Along with driving up the shares, thenews also generated a renewed speculation about a possible future takeover. In the second week ofApril, shares remained more or less on the same level. In the second half of the month, sharesexperienced continuous ups and downs showing an upward trend at the end of April. One significantmove was the rebranding of Brazilian subsidiary Expresso Araçatuba to TNT Araçatuba as part of theongoing integration of operations in Brazil.
UPS recorded a considerable price increase from $64.41 to $69.14 in April. In the first twoweeks, shares remained more or less on the same level. In the middle of the month, shares surged 5%in one day on UPS’ pre-announcement of a 37% increase in adjusted diluted earnings per share forthe first quarter of 2010 driven by double-digit international package and supply chain growth. Inthe third week of April, shares remained stable but rose again 5% as UPS published its official Q1results. The company announced a substantial increase in hub capacity in the USA and Asia to targetcontinued international growth after a strong rise in Q1, 2010, profits and expectations of highdouble-digit profits growth this year.
Over the course of April, Deutsche Post DHL shares dropped from €12.85 (31 March) to €12.24 (30April). In the first two weeks, shares showed some minor ups and downs with a slight downwardtendency. In the second half of the month, shares remained more or less on the same level with aslight drop at the end of the month. On April 28, the company reiterated its 2010 profit forecastsat the annual shareholders meeting, saying it expected to benefit “over-proportionally” from theaccelerating recovery of the world economy.
An important development at the beginning of the month was the “peace deal” with Belgian unionsin connection with the relocation of DHL’s European head office from Brussels to Bonn. Some globalinitiatives included the launch of a new advertising concept in 21 countries with more than 1,500ads in over 250 publications worldwide and a major extension of DHL’s next-day import deliveries tomore than 200 countries. In addition, DHL has contracted additional air capacity for freightshipments from Asia in response to increasing demand that has now returned to pre-crisislevels.
FedEx shares recorded a moderate drop in April from $93.40 to $90.01. Shares dropped slightly inthe first half of the month but then rose 5.4% in just two days as FedEx Express announced that itis speeding up deliveries from Asia to Europe with the launch of a new Hong Kong-Paris flight. Inthe third week, shares dropped again 4% and showed continuous ups and downs until the end of themonth when the company announced its new environmental programme EarthSmart.
