The share prices of UPS, FedEx, Deutsche Post DHL and TNT are all rising this month after mixedresults in January, CEP-Research analysis shows.
The UPS share price has risen steadily so far this month after largely stagnating duringJanuary. Last month the UPS share price dropped 1.32%, closing at $71.62 on January 31 down from$72.58 on December 31, 2010. One positive factor for the stock was the plan to expand the globalhealthcare network but investors were also worried about the impact of severe weather on thecompany’s operations.
On February 1, however, the company unveiled a 44% rise in operating profits in the finalquarter of 2010 and confidently predicted record profits this year driven by higher margins andinternational growth. The results and outlook drove the share price up to $74.59 at closing thatday. Since then it has risen to above the $76 level, closing yesterday at $76.33.
The FedEx stock ended last month down 2.89% at $90.32 (January 31 vs December 31, 2010). Majordevelopments during January included the merger of the US freight trucking operations, an expansionof domestic services in India and a new shipping solution for frozen shipments.
So far this month, however, the share price has risen significantly and closed yesterday at$97.47. In particular, the stock shook off the company’s February 14 announcement that it wasdownscaling its previous guidance for Q3 earnings per share (covering December 2010 – February2011) due to the financial impact of severe weather conditions and rising oil prices.
Deutsche Post DHL was the best performer of the four integrators in January. Its share pricerose by 5.43% to €13.39 on January 31 from €12.70 on December 31, 2010. Investors were heartened bythe company’s reiteration of its 2010 forecasts, with expected EBIT of €2 billion. The company alsosecured a $2.6 billion credit line with international banks for future growth and announced variousnetwork investments around the world.
This month the company’s share price has steadily risen, closing at €13.81 yesterday.Developments so far this month include a $22.5 million investment in the US air hub at Cincinnati,a prestigious sponsorship with Manchester United and moves to target the e-commerce market moredeeply.
TNT, which will announce its Q4 and 2010 results on Monday (February 21), has also seen animprovement in its share price this month. In January the stock effectively stagnated, closing themonth at €19.77, up a fractional 0.1%. The company continued its European mail disposals with salesin Belgium and Italy.
During February the share price has improved, closing yesterday at €20.61. At the start of themonth the company secured union agreement for job cuts and cost saving measures at TNT Post. But italso warned that severe weather in December and restructuring in Brazil would reduce its Q4operating profits by €45 million.
