profits to management!! WHY??

[air_upser]

FEguy, maybe we are suffering from miscomunication. The cost of opening a building is not expensed all at once, but it is expensed, and it does affect net income. If you are only refering to "profit from operations" then I agree with you. But the bottom line number reported to the public is net income. Saying that capital expenditures do not affect profit is inaccurate.
Example, we buy a plane for 10 million. It depreciates 500,000 a year for 20 years. That 500,000 is expensed each year, right? Depreciation IS an expense and is a direct result of capital expenditures.

(Message edited by air_upser on August 03, 2005)

 

[upsdawg]

FE-Guy..............Fed Ex is so good at manipulating numbers---but bottom line is Capital Expenses or any other expenses reduce the amount of Net Income that a company reports.

I do believe that there are some "freezes" on Capital Expenditures throughout UPS and the main reason is to make sure the Net Income reported at Quarters end is substantial and meets Wall Street's approval.

I can't wait for FedEx to report their next quarter's numbers.......could it be 2 quarters in a row of less than expected volume and "Profit"??

 

[tieguy]

"air_upser: Get a clue. Buildings, planes, vehicles, and other capital expenditures are NOT, yes, READ IT AGAIN, are NOT expenses.
They are bought and paid for WITH profits"

LOL. FE guy with logic like that I can't believe I am worried about you taking my packages. I understand your point as to accounting catogories but it certainly does affect the bottom line.

 

[feguy]

For about the third time...I don't work for Fed Ex, I am approaching my 25th year at UPS. Try to stay current.
And for the LAST time, since many can't comprehend it, but like so many FACTS that despite your disbelief, still exist:
Capital expenditures, such as buildings, planes and vehicles *DO NOT* affect a company's bottom line. They are purchased WITH profits, they do not subtract from them. Go to school.

 

[dannyboy]

FE guy

For all your misposts and misstatements, one thing you did post is pretty much true. UPS does usually not need to borrow money to make purchaces. They do borrow money on occasion, but usually they have the cash reserves to back that loan up.

Now since you know everything about both companies, would you care to comment on how FEDEX borrows money or not?

And as for cleaning our plow in regards to taking volume, we fell asleep at the wheel once, and we very much underestimated what the future held with RPS. I dont think you will see that happen ever again. Not from the company, drivers or even the union.

d

 

[air_upser]

Please read up on depreciation and how it is expensed. Net income IS the bottom line and Depreciation IS expensed for net income. Whether Capital items are bought with cash on hand or a loan will also affect profits if you have an interest expense from the loan.
If you look at UPS's financial statments, you'll see there are depreciation expenses. That is a direct result of capital purchases.

 

[dannyboy]

FE guy

Maybe that is your problem with understanding things. Did I ever state that you work for FDX? Nope. So pull your head out of where ever it is you keep it when you dont need a hatrack, and read what the posters post.

Then and only then will you be able to intelligently respond.

d

 

[upsdawg]

For about the third time...I don't work for Fed Ex, I am approaching my 25th year at UPS. Try to stay current.
And for the LAST time, since many can't comprehend it, but like so many FACTS that despite your disbelief, still exist:
Capital expenditures, such as buildings, planes and vehicles *DO NOT* affect a company's bottom line. They are purchased WITH profits, they do not subtract from them. Go to school.

FE Guy----sorry , I thought with a name like FE Guy---that you had something to do with them----but bottom line, you do come across as one of "Them"!!

Your comment that Capital Expenditures do not "affect" a companies bottom line and are purchased with profits, but do not subtract from them......makes no sense whatsoever!! CE reduces the amount of Net Profit that a company reports---if you have a CE that will cost $1 Billion and have profits of $1.1 Billion-----if you move forward to spend the $1 Billion on your CE your net Profit will be $1 Million Dollars----point that was made is that UPS is opting not to spend some CE and there are buildings that need to be expanded, but to make sure that we report the highest Net Income to Wall Street we are cutting back on the CE. I know that we have 2 major hubs in my district that need help--we are already loading cars in the middle of the building on makeshift rollers------peak season is coming and it will be horrible just getting cars out of the building after the sort goes down!!

 

[teddyr]

Wat does the FE in FEGuy stand for?

 

[moreluck]

First Edition ?

Fantastic Ego ?

Ferocious Enemy ?

Friendly Entrepreneur ?

Am I close??

 

[spritskr]

SO let me see. I am a manager who gets no overtime. I work sometimes 50-60 hours a week without so much as a thank you. I get two weeks bonus at the end of the year thats taxed. My MIP (Management incentive program) was recently stretched out over 5 years. My ERI scores get trashed because the people that report to me think its my fault. I am constantly being told to "Trust in the Partnership", even when I see how the new management team only one goal in mind: To save money at whatever the cost. Which in my area is for everyone to do twice as much with half the staff. I think having it rough is a relative term, while I dont deliver packages. I do clock about 10 to 15 miles in walking a day. While i dont put up with the yapping from the customers. I have to put up with it from my direct reports and my upper-management. In regards to the caste system. UPS thrives on the caste system, there have been time when i have told management something and they didnt listen, but my manager will tell them the same thing 20 minutes later and they will act like they have heard it for the first time. I have heard this scenario played out many times thruout UPS.

 

[upsdude]

Facilities Engineering?

 

[spritskr]

No, even though i know people in facilities. I was told to be careful, because the site is sometimes monitored (probably isnt but why take a chance).
The "Trust in the Partnership" Is a direct quote from one of my upper managers, and anyone reading it will know where i work out of. Sorry if I sound paranoid, but that is what the management team where i work is starting to foster, and they dont do anything to dispel the rumors.

 

[over9five]

Final Endeavor?

Freaky Elephant?

Fired Executive?

 

[ok2bclever]

sprit, take it to the bank that this forum has those who would inform on you if they could.

The board had a clock problem in the past, don't know if it still does as I really don't pay attention to the posting times or care, but it made it appear that I was posting during my work hours and that led to the thought I was using UPS computers to do so.

That would clearly be a violation of the internet rules for an hourly, not to mention the potential to accuse me of stealing time.

A simple IP origin address check could have proved this wasn't the case, but snitches and weasels are rarely very intelligent.

Regardless, I was questioned by the appropriate management and the equipment checked out regarding this so obviously you want to be careful here in what you say.

I checked out clean, but no apologies nor attaboys, but hey, the company has never been very good about apologies or praise.

 

[xracer]

frickin enigma

 

[toonertoo]

Fired employee???