Terrorist threats and economic repercussions
An ink toner cartridge converted into a bomb was found aboard a United Parcel Service (UPS) flight traveling to Chicago from Yemen, Reuters and CNN reported on Friday.
The bomb was discovered during a stopover in London.
Notice that U.S. authorities were investigating a possible bomb threat on Friday on two cargo plane at Philadelphia International Airport. Also one UPS plane at Newark airport in New Jersey were also being investigated on Friday for suspicious packages. A UPS truck in New York City was also under investigation, police said. Transportation Security Administration spokeswoman Kristin Lee said the planes landed safely and are being swept by law enforcement.
FBI source tells Reuters initial tests of package on Chicago-bound UPS plane in Britain found no explosives.
Before you rush to conclude that terrorist threats much publicized are close to materialize, I noticed that the whole story is a serious blow to those of UPS. Also, with the economic repercussions. A news by Steven Gelsi from MarketWatch, noticed (21 October 2010) that United Parcel Service said Thursday its third-quarter net income jumped 81% to $991 million, or 99 cents a share, from $549 million, or 55 cents a share, in the year-ago period. The package delivery giant’s adjusted earnings rose to 93 cents a share, from 55 cents a share. Revenue rose 9% to $12.19 billion from $11.15 billion. UPS was expected to earn 88 cents a share on revenue of $12.35 billion, according to a survey by FactSet Research. UPS said it expects 2010 adjusted profit to increase by 50% from 2009. UPS raised its 2010 profit outlook to a range of $3.48 a share to $3.54 a share, from its earlier view of $3.35 a share to $3.45 a share.
Standard & Poor’s Equity Research analyst Jim Corridore reiterated his buy rating on the stock with a price target of $84 a share, even though he said the numbers came up short of his forecasts. “UPS saw strong margin improvement in all business units, but is also seeing moderating economic growth,” Corridore wrote in a note, quoted by MarketWatch.