UPS Posts Higher Profit

After a strong post holiday shopping spree by many of the U.S. consumers online, it has led to an increase in the first quarter profit of the United Parcel Service Inc. (UPS) by 6.9%. The Chief Financial Officer, Kurt Kuehn predicts that the U.S. economy will be stable so that their forecast for 2% in growth has not changed. Other countries in Europe and Asia have profits that are opposite of those in the United States where many of their sales have been slowed down. These transport companies play a significant role in our economy because they transport everything that is bought and sold from business to business or business to consumer relations. Also, on Thursday, UPS also stated that it would buy Hungary based pharmaceutical logistics company, Cemelog Zrt to strengthen its health-care business in Europe.

With higher profits in transportation companies, I believe that it can tell a lot about how consumers are spending in the economy, and what is being shipped across the nation. Companies such as UPS play a vital role in determining and being able to present how the flow of goods is being exchanged.  If profits are down for the transportation companies, it can present a decline in the overall economy of business and consumer spending.

Written by: Samantha Chin

Source: The Wall Street Journal

http://online.wsj.com/article/SB10001424127887324474004578444511846351012.html?mod=WSJ_business_whatsNews

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