Tag Archive | "profits"

UPS Forecasts High Profits in 2011

United Parcel Service reported a quarterly profit that beat the estimates of analysts, increasing their shares by more than 4 percent. The largest package delivery company in the world predicts record-high profits in 2011.

Analysts said that there were several factors that are driving the company’s performance. These include price increases last year and early this year, the increasing volume as the economy recovers, and the use of technology that has improved productivity.

UPS manages goods equal to 6 percent of the gross domestic product (GDP) in United States and 2 percent of the GDP in the entire world in its planes and trucks. Its shipment trends provide a concrete picture of consumer demand, the company said.

According to Chief Financial Officer Kurt Kuehn in an interview, UPS is walking out of recession stronger and nimbler than ever. Their company is a little more optimistic on the U.S. economy, but global growth will be more patterned.

UPS calls for moderate global growth in 2011. It said they controlled costs as compensations and benefit expenses increased less than volume.

Sterne Agee foresees UPS shares increasing to $100 on the following 12 months. It cited the company’s capability to recapture costs by elevating prices and internal controls.

The shares of the company were up 4.3 percent or $3.08 at $74.74 in the afternoon trading. Its shares last attained $75 in December 2007, a UPS spokesman informed.

BB&T analyst Kevin Sterling said UPS already thinks they can exceed peak earnings in less than two years from the start of the recession.

Posted in Business, Featured NewsComments (0)

Arab Bank’s 9-month Profit Dropped 19.7 Percent

Arab Bank ARBK.AM in Jordan dropped 19.7 percent from its nine-month profits to $402.3 million the same period last year. This report is based on its financial statement released on Sunday.

According to the given financial statement, the bank had a 3 percent growth in assets at the beginning of the year. That is, $52.12 billion against $50.6 billion.

Also, the bank’s balance sheet showed that they had set aside a total amount of $203 million to supply for non-performing loans during the first nine months of the year 2010, which increased from $111 million amount of money they had kept for the same period last year.

Today, most banks in Jordan are setting aside larger provisions to help them cover potential defaults and non-performing loads by real estate firms and businesses falling down from the effect of global downturn on the aid-dependent economy.

Arab Bank was established in Jerusalem, Palestine during the 1930s. This is a small bank that has evolved into one of the largest financial institutions found in the Middle East. Today, they have the largest worldwide Arab branch network. They have over 500 branches in around 30 countries from 5 different continents.

The bank’s nine-month net profit dropped down to $500.9 million from their $672.8 million last year.

However, bankers inform that while their credit provisions reflect on its profits, the Arab Bank has a healthy base that cushions them and about $8 billion shareholders equity.

Posted in FinanceComments (0)