Acc 100 Final Project Paper
ACC 100
AC 100 Final Project Paper
Fed Ex vs. UPS
Jennifer Kulka, Yukari Matsubara, Cathy Myers and Elizabeth Scofield
Notre Dame de Namur University
Federal Express was founded in 1973 by Fred Smith. The idea came from FedEx Corporation operates in four segments. FedEx Express is the world's largest express transportation company, delivering some 3 million packages daily. It provides transportation, e-commerce, and business services worldwide. The company offers a range of shipping services for the delivery of packages, documents, and freight. FedEx Freight segment offers regional next-day and second-day, and interregional less-than-truckload freight services. FedEx Kinko's provides document management solutions and many business services including facsimile, black and white and color copying/printing, finishing and presentation services, signs and graphics, Internet access, videoconferencing and various other retail services and products. The company was incorporated in 1971 and is based in Memphis, Tennessee. …show more content…
United Parcel Service, Inc.
(UPS) is a package delivery company, which provides specialized transportation and logistics services in the United States and internationally. Its operations include the delivery of letters, documents, and packages in the United States and worldwide. As of December 31, 2005, the company operated a ground fleet of approximately 98,000 package cars, vans, tractors, and motorcycles, as well as utilized approximately 600 airplanes. United Parcel Service was founded by James E. Casey in 1907 as American Messenger Company. It changed its name to Merchants Parcel Delivery in 1913 and to United Parcel Service, Inc. in 1919. The company is headquartered in Atlanta,
Georgia.
Both companies did well in 2004. Federal Express acquired Kinko's, now called FedEx-Kinko's. This added $621 million in revenue (Federal Express Annual Report 2005, pg 38)
UPS revenues increased over 6%. They invested in a new technology that re-engineered the U.S. domestic operations. At the end of 2004 UPS wanted to grow their market share in the global small package business (UPS Annual Report 2004, pg 3)
Where are they now? Federal Express increased revenues by 19% versus UPS at 16.4%. This assumes that the acquisition of Kinko's caused some of the increase. It is not clear if this increase in revenue boosted their market share.
The operating margin was much higher for UPS. This could be due to the investment in the new technology to re-engineer the U.S. domestic operations.
Between 2004-2005 the net income for Federal Express increased by 73% over UPS with an increase of 16.1%. Again, this could be due to the acquisition of Kinko's and possibly gaining some of the market share.
In 2005 earnings per share (EPS) for Federal Express was at $4.81, which almost doubled from the year before. The diluted earnings per share were at $4.72. On the Consolidated Statement of Changes in Stockholders' Investment and Comprehensive Income it shows that 2,767,257 shares were issued. Which means this is how many shares that could potentially enter the market. For UPS, the earnings per share were $3.48 and the diluted earnings per share were $3.47. UPS authorized 800 million shares, 302 million shares issued for 2005.
Based on the financial statements in the 2005 Annual Reports of both Federal Express and UPS I would say that the more profitable company is Federal Express. Federal Express is more profitable because they have a market share in ground and air transportation as well as stores that offer faxing, copying etc.
AC 100 Final Project Paper
Fed Ex vs. UPS
Jennifer Kulka, Yukari Matsubara, Cathy Myers and Elizabeth Scofield
Notre Dame de Namur University
Federal Express was founded in 1973 by Fred Smith. The idea came from FedEx Corporation operates in four segments. FedEx Express is the world's largest express transportation company, delivering some 3 million packages daily. It provides transportation, e-commerce, and business services worldwide. The company offers a range of shipping services for the delivery of packages, documents, and freight. FedEx Freight segment offers regional next-day and second-day, and interregional less-than-truckload freight services. FedEx Kinko's provides document management solutions and many business services including facsimile, black and white and color copying/printing, finishing and presentation services, signs and graphics, Internet access, videoconferencing and various other retail services and products. The company was incorporated in 1971 and is based in Memphis, Tennessee. …show more content…
United Parcel Service, Inc.
(UPS) is a package delivery company, which provides specialized transportation and logistics services in the United States and internationally. Its operations include the delivery of letters, documents, and packages in the United States and worldwide. As of December 31, 2005, the company operated a ground fleet of approximately 98,000 package cars, vans, tractors, and motorcycles, as well as utilized approximately 600 airplanes. United Parcel Service was founded by James E. Casey in 1907 as American Messenger Company. It changed its name to Merchants Parcel Delivery in 1913 and to United Parcel Service, Inc. in 1919. The company is headquartered in Atlanta,
Georgia.
Both companies did well in 2004. Federal Express acquired Kinko's, now called FedEx-Kinko's. This added $621 million in revenue (Federal Express Annual Report 2005, pg 38)
UPS revenues increased over 6%. They invested in a new technology that re-engineered the U.S. domestic operations. At the end of 2004 UPS wanted to grow their market share in the global small package business (UPS Annual Report 2004, pg 3)
Where are they now? Federal Express increased revenues by 19% versus UPS at 16.4%. This assumes that the acquisition of Kinko's caused some of the increase. It is not clear if this increase in revenue boosted their market share.
The operating margin was much higher for UPS. This could be due to the investment in the new technology to re-engineer the U.S. domestic operations.
Between 2004-2005 the net income for Federal Express increased by 73% over UPS with an increase of 16.1%. Again, this could be due to the acquisition of Kinko's and possibly gaining some of the market share.
In 2005 earnings per share (EPS) for Federal Express was at $4.81, which almost doubled from the year before. The diluted earnings per share were at $4.72. On the Consolidated Statement of Changes in Stockholders' Investment and Comprehensive Income it shows that 2,767,257 shares were issued. Which means this is how many shares that could potentially enter the market. For UPS, the earnings per share were $3.48 and the diluted earnings per share were $3.47. UPS authorized 800 million shares, 302 million shares issued for 2005.
Based on the financial statements in the 2005 Annual Reports of both Federal Express and UPS I would say that the more profitable company is Federal Express. Federal Express is more profitable because they have a market share in ground and air transportation as well as stores that offer faxing, copying etc.