UPS is an earnings report that commands attention due to their sensitivity to the global economy. This morning’s report was “better than expected” (of course) and they provided a glimpse into the state of the global economy. CFO Kurt Kuehn said:
“I am confident in UPS’s ability to generate strong cash flow and continued earnings growth while investing in growth opportunities around the world. Based on the projections of retailers and economists, we expect modest growth during the holiday peak season.”
Their domestic average daily package growth climbed 3.58% compared to last year while international daily package growth climbed 13.7%. Asian volume growth was 34%. This looks like more confirmation of a China based global economy with a weak domestic economy.