Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 2.1 percent lower in October 2008 than in October 2007, reaching $72.7 billion, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation.

The value of U.S. surface transportation trade with Canada and Mexico rose 1.2 percent in October from September. Month-to-month changes can be affected by seasonal variations and other factors.

Surface transportation consists largely of freight movements by truck, rail and pipeline. About 88 percent of U.S. trade by value with Canada and Mexico moves on land.

The value of U.S. surface transportation trade with Canada and Mexico in October was up 38.8 percent compared to October 2003, and up 74.9 percent compared to October 1998, a period of 10 years. Imports in October were up 75 percent compared to October 1998, while exports were up 74.8 percent.

U.S. Surface Transportation Trade with Canada

U.S.–Canada surface transportation trade totaled $44.8 billion in October, down 6.1 percent compared to October 2007. The value of imports carried by truck was 17.5 percent lower in October 2008 compared to October 2007, while the value of exports carried by truck was 9.5 percent lower.

Michigan led all states in surface trade with Canada in October with $5.3 billion.

U.S. Surface Transportation Trade with Mexico

U.S.–Mexico surface transportation trade totaled $27.9 billion in October, up 5.1 percent compared to October 2007. The value of imports carried by truck was 5.9 percent lower in October 2008 than October 2007 while the value of exports carried by truck was 18.4 percent higher.

Texas led all states in surface trade with Mexico in October with $9.0 billion. The TransBorder Freight Data are a unique subset of official U.S. foreign trade statistics released by the U.S. Census Bureau. New data are tabulated monthly and historical data are not
adjusted for inflation. October TransBorder numbers include data received by BTS as of Dec. 17.

The news release and summary tables can be found at www.bts.gov. More information on TransBorder Freight Data and data from previous months are posted on the BTS website at http://www.bts.gov/transborder/.  BTS will release November TransBorder numbers on Jan. 29.

Contact: Dave Smallen
Tel.: 202-366-5568

ATLANTA, Jan. 7, 2009 - UPS (NYSE:UPS) today began offering domestic express pickup and delivery services inside 16 additional countries across Europe, Africa, the Middle East and Latin America.

The nations involved in the expansion are Algeria, Argentina, Chile, Cyprus, Czech Republic, Hungary, Kazakhstan, Kenya, Malta, Pakistan, Romania, Saudi Arabia, Serbia, South Africa, Ukraine and UAE.

Shippers in these countries now will be able to consolidate all of their package delivery services with one carrier, effectively eliminating multiple shipping processes while potentially saving money. 

Moreover, by using UPS for domestic as well as international shipping, customers in the 16 nations will be able to use the same technology platform for tracking, visibility and billing. UPS's shipment visibility technology will provide a higher level of service than what's generally been available in some of these markets.

"This expansion represents an investment for the future through markets where we're seeing growing demand," said Dan Brutto, president of UPS International. "While we've provided international service to these countries for years, we see an opportunity now to expand our customer base and grow our business. We're excited that we can extend our network to meet the growing needs of these customers."

UPS long has provided international package delivery service into and out of more than 200 countries and territories around the globe. With the addition of these 16 nations, UPS is providing domestic express services inside more than 45 countries.

"Today's economy is affecting nearly every company on the planet, large and small," added Brutto. "In these uncertain times, it's critical to have an experienced partner like UPS that can help provide efficiency, reliability and ultimately, opportunities for new growth in the future."

UPS has invested more than $1 billion a year over the past two decades to develop information technology solutions that make it easier for customers to connect with new markets, whether they're across town or on the other side of the world.

UPS is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at www.UPS.com.

 

UPS is official courier of 2009 IIHF World Junior Hockey Championship

MISSISSAUGA, ON - UPS Canada, a leading provider of shipping and logistics solutions, will be the official courier of the 2009 IIHF World Junior Hockey Championship from Dec. 26 to Jan. 5 in Ottawa.

The international event unites 10 teams from around the globe.  Participating teams this year include USA, Russia, Sweden, Finland, Germany, Czech Republic, Latvia, Switzerland, Kazakhstan and Team Canada. The teams compete in a tournament consisting of 31 games all in one city, Ottawa, for the first time.

As an official event sponsor, UPS will use its wide range of customized services to meet all of the event's shipping needs prior to and during the games. In addition, UPS Canada will host a promotional game night on Dec. 27 at SBP Arena, the site of the gold medal game. Fans will cheer extra loud with UPS thunder sticks and have the chance to win UPS prize packs delivered directly by a local UPS driver.

"This is part of our commitment to Canadian sport and specifically to world junior hockey, which continues to grow in prestige each year," said Greg Kane, vice-president of communications for UPS Canada. "Speed and accuracy drives the sport of hockey, which is also a cornerstone for UPS. We wish the teams good luck and look forward to the games."

The UPS Store locations in Ottawa closest to the event venues are located on Earl Grey Drive, not far from SBP Arena, and also just around the corner from the Civic Centre on Fifth Avenue. Both stores are charged for the event and will be ready to provide easy and efficient shipping and packaging services for athletes and the estimated 30,000 spectators who may need to ship souvenirs back to family and friends around the world. A few lucky customers of The UPS Store will join in the excitement as winners of game tickets or 2009 World Junior Championship merchandise, from a recent contest run in store in support of the sponsorship.

"This event entails careful coordination and precise timing, which is why UPS is a natural fit for this sponsorship," says Cyril Leeder, vice-chair of the host organizing committee. "The support of UPS's customized services is a vital asset towards bringing together the needed resources in time to ensure the success of the 2009 IIHF World Junior Championship."

About UPS

UPS is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com.

About IIHF World Junior Hockey Championship

International Ice Hockey Federation (IIHF) is the governing body for the sport of ice hockey and in-line hockey for both men and women. The IIHF works in collaboration with its committees to organize and plan 25 different world championships in five different categories including men, women, juniors under 20, juniors under 18 and women under 18. The IIHF develops and promotes hockey and hockey players throughout the world. All surplus revenues from the world juniors go to support the development of amateur, junior and international hockey.  For more information on the IIHF visit www.iihf.com.

For further information: Shannon Morton, APEX Public Relations, (416) 924-4442 ext. 253, smorton @ apexpr.com;
Kim Misner, UPS Canada Public Relations, (905) 676-6939, kmisner @ ups.com;
Phil Legault, Co-director, 2009 WJC host committee, (613) 599-0327, legaultp @ ottawasenators.com

MEMPHIS, Tenn. ... FedEx Corp. (NYSE: FDX) today reported earnings of $1.58 per diluted share for the second quarter ended November 30, compared to $1.54 per diluted share a year ago.

“Our financial performance is increasingly being challenged by some of the worst economic conditions in the company’s 35-year operating history,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We are managing our costs and taking full advantage of market opportunities, and our team members are delivering every day on our promise to ‘make every customer experience outstanding’. However, with the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business and minimize the loss of jobs.”

Cost Reductions

FedEx has already taken actions to reduce over $1 billion of expenses for all of fiscal 2009, including:

  • Elimination of variable compensation payouts
  • Hiring freeze
  • Volume-related reductions in labor hours and line-haul expenses
  • Discretionary spending cuts
  • Personnel reductions at FedEx Freight and FedEx Office

FedEx is now implementing a number of additional cost reduction initiatives to mitigate the effects of deteriorating business conditions, including:

  • Base salary decreases, effective January 1, 2009:
    • 20% reduction for FedEx Corp. CEO Frederick W. Smith
    • 7.5%-10.0% reduction for other senior FedEx executives
  • 5.0% reduction for remaining U.S. salaried exempt personnel
  • Elimination of calendar 2009 merit-based salary increases for U.S.salaried exempt personnel
  • Suspension of 401(k) company matching contributions for a minimum of one year, effective February 1, 2009

Outlook

FedEx reaffirms last week’s earnings estimate of $3.50 to $4.75 per diluted share for fiscal 2009, which assumes weak global macroeconomic conditions, anticipated volume gains from DHL and stable fuel prices. The company’s earnings estimate for the second half of fiscal 2009 is $0.69 to $1.94 per diluted share. FedEx will not provide third quarter guidance due to significant economic uncertainty and the difficulty in forecasting the impact of recently acquired DHL customers. Capital spending is now expected to be $2.4 billion for fiscal 2009, down from $3.0 billion at the start of the year.

“While the departure of DHL from the U.S. domestic package market presents a rare opportunity, significant uncertainty exists in the global economy,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our latest earnings outlook reflects that uncertainty and incorporates the expected savings from our cost reduction actions.”

Second Quarter Results

FedEx Corp. reported the following consolidated results for the second quarter:

  • Revenue of $9.54 billion, up 1% from $9.45 billion the previous year

  • Operating income of $784 million, up from $783 million a year ago

  • Operating margin of 8.2%, down from 8.3% the previous year

  • Net income of $493 million, up 3% from last year’s $479 million

Total combined average daily package volume in the FedEx Express and FedEx Ground segments was down 2% year over year, as the weak economy reduced demand for shipping services.

Operating income was essentially flat, as the company significantly benefited from rapidly declining fuel prices and from the timing lag that exists between when fuel prices change and when indexed fuel surcharges automatically adjust. These benefits and the cost reduction activities were offset by the negative impact of lower shipping volumes resulting from the weak global economy.

FedEx Express Segment

For the second quarter, the FedEx Express segment reported:

  • Revenue of $6.10 billion, up 1% from last year’s $6.04 billion

  • Operating income of $540 million, up 2% from $531 million a year ago

  • Operating margin of 8.9%, up from 8.8% the previous year

Volume and revenue growth were significantly impacted by global economic weakness. Operating income and margin reflect the benefits of rapidly decreasing fuel prices during the quarter and of the timing lag that exists between when fuel prices change and when indexed fuel surcharges automatically adjust. Results also include benefits from cost-containment activities, such as volume-related reductions in flight hours, labor hours and fuel consumption.

FedEx International Priority® (IP) package revenue grew 1% for the quarter, driven by 8% growth in revenue per package due to higher fuel surcharges. IP average daily package volume declined 7%. FedEx International Priority Freight® revenue grew 4%. U.S. domestic express package volume declined 8%, while revenue per package increased 9% due to higher fuel surcharges.

FedEx Ground Segment

For the second quarter, the FedEx Ground segment reported:

  • Revenue of $1.79 billion, up 5% from last year’s $1.70 billion

  • Operating income of $212 million, up 23% from $173 million a year ago

  • Operating margin of 11.9%, up from 10.2% the previous year

FedEx Ground average daily package volume was down 1% year over year,as continued growth in the FedEx Home Delivery service was more than offset by a decline in commercial volume. Yield improved 6% primarily due to higher fuel surcharges. FedEx SmartPost revenue increased 11% with one fewer operating day, while average daily volume grew 16% largely due to DHL’s discontinuation of its @Home service at the beginning of the quarter. Operating income was higher primarily due to the timing impact of fuel surcharges.

FedEx Freight Segment

For the second quarter, the FedEx Freight segment reported:

  • Revenue of $1.20 billion, down 3% from last year’s $1.24 billion

  • Operating income of $32 million, down 59% from $79 million a year ago

  • Operating margin of 2.7%, down from 6.4% the previous year

Less-than-truckload (LTL) average daily shipments decreased 2% year over year, as market share gains were more than offset by the weakening U.S. economy. LTL yield declined 1%, as higher fuel surcharges were offset by the effects of a competitive pricing environment.

Operating income and margin decreased in the quarter due to the competitive pricing environment and lower average daily shipments, partially offset by the benefits from lower variable incentive compensation and continued cost containment initiatives, including the alignment of staffing to current volume levels.

FedEx Services Segment

FedEx Services segment revenue, which includes the operations of FedEx Office and FedEx Global Supply Chain Services, was down 4% year over year, as declines in copy revenues exceeded revenue generated from FedEx Office locations opened in the last year. The company expects continued deterioration in the core FedEx Office business, and has announced staffing reductions and location closures so that expenses are in line with revenue.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and second quarter fiscal 2009 Statistical Book. These materials, as well as a Webcast of the earnings release conference call to be held at 8:30 a.m. EST on December 18 are available on the company’s Web site at www.fedex.com/us/investorrelations. A replay of the conference call Webcast will be posted on our Web site following the call.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground’s owner-operators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, the impact of high fuel prices, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.

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