Shares of TNT, DHL, UPS and FedEx all fell in May after a mixed result in April, CEP-Researchanalysis shows.
In May, TNT shares experienced the biggest drop falling by 12.31% followed by UPS with a drop of9.23%. FedEx shares also dropped significantly by 7.24% while Deutsche Post DHL fell much moremoderately by only 0.98%.
In April, shares of TNT (+8.71%) and UPS (+7.34%) showed a significant increase while DeutschePost DHL (-4.75%) and FedEx (-3.63%) dropped. This mixed result followed a strong share priceincrease for all integrators in March and mixed trends over the last few months.
TNT shares recorded the biggest slump in May from €23.08 on 30 April to €20.24 on 31 May. At thebeginning of May, TNT announced a rise in profits and revenues for the first quarter of 2010 thanksto an upturn in express volumes and better mail profits generated by parcels growth and despitelower mail volumes. Its night express division TNT Innight also grew strongly in the first threemonths of this year with increased revenues and volumes. This result did not have a positive impacton TNT shares which fell 12% in the first week of the month. Shares rose slightly in the secondweek. In the second half of May, TNT shares experienced continuous ups and downs. Positivedevelopments last month included the acquisition of the Dutch e-retail specialist Kowin to growTNT’s e-commerce activities and the addition of the two US gateways at Miami and Los Angelesinternational airports in cooperation with Con-way Freight to reduce transit times. To expand itsinternational air cargo services, TNT Express launched a five day per week flight linking Moscowand its main European hub at Liege.
UPS recorded a similar drop from $69.14 to $62.76 in May. In the first week of May, shares fellheavily by 10% to rise again in the second week. In the second half of the month, UPS shares showeda continuous downward trend with minor ups and a slight upward tendency at the end of May. Lastmonth, UPS strongly expanded its presence in Asia to boost growth in the region. It has establisheda joint stock company UPS Vietnam with its local service partner P&T Express JSC (normallyknown as VN Post Express JSC). In addition, UPS plans to build its largest service-sharing base inthe Asia Pacific region in eastern China and outsource some services to the facility. Also inChina, the company signed a deal as the preferred logistics provider for AliExpress, a new onlinewholesale marketplace launched by leading Chinese e-tailer Alibaba.com.
Compared to the other integrators, Deutsche Post DHL shares remained fairly stable in May withan insignificant drop of 0.98% from €12.24 on 30 April to €12.12 on 31 May. In the first week ofMay, shares fell sharply by 10% but rose again 10% in the second week. In the second half of themonth, shares experienced some minor ups and downs with a clear upward tendency at the end of May.In the first half of the month, Deutsche Post DHL announced a profit rise of more than 80% in Q1,2010, thanks to better results from the DHL express, forwarding and supply chain businesses anddespite a slight drop in mail profits and raised its full-year outlook. Another positivedevelopment was the announcement of 700 new jobs to be created in Bavaria, southern Germany, at anew customer service call centre. In France, DHL moved a step closer to selling its loss-makingFrench domestic parcel business to the financial investor Caravelle by gaining official approvalfrom German authorities. On the global level, DHL Express has expanded its intercontinental airnetwork with an Aerologic route linking the UAE to Asia and Europe to benefit from growing trade toand from the Middle East. In terms of products and services, Deutsche Post DHL has broadened itsmail products with a new international hybrid service from DHL Global Mail “Global Hybrid Print& Mail” enabling companies to send out large volumes to other countries faster, greener andmore cost-effectively.
FedEx shares dropped considerably In May from $90.01 to $83.49. Shares dropped 10% in the firstweek but recovered somewhat in the second week. In the second half of the month, shares started tofall again with some minor ups and downs until the end of the month. In May, FedEx Trade Networkscontinued its worldwide expansion with three additional offices in Europe and the Middle East whileFedEx Express announced plans to buy six more B777 freighters and increase its fleet of thelong-range, large-capacity cargo planes to 38 over the coming decade.
