In early trading Friday, UPS stock was up $2.92 at $60.33.
The largest overnight package shipper said it now anticipates earnings between 73 cents and 75 cents a share in the fourth quarter. It previously projected earnings of 58 cents to 65 cents.
"The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management," said CFO Kurt Kuehn in a prepared statement. "However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses."UPS is considered to be an important economic indicator because 6% of the U.S. GDP and 2% of the world's GDP is in its system at any given moment. Despite the improving economy, UPS also said it will offer voluntary separation packages to approximately 1,100 management and administrative employees, as it eliminates 1,800 positions in a restructuring of domestic management. Normal attrition is expected to accommodate the remaining losses of positions. The restructuring will reduce the number of U.S. regions from five to three and U.S. districts from 46 to 20. The move "creates regions and districts that are better aligned geographically (and) will allow us to sharpen our focus on profitable growth," said CEO Scott Davis in a prepared statement. A one-time charge for the restructuring, to be taken in 2010, will be offset by cost-savings, UPS said. The company will provide additional details during its fourth- quarter earnings call on Feb. 2.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV