Posted on 02/02/2018 6:24:06 AM PST by markomalley
UPS is putting its savings from the upcoming tax cuts to use in a slightly different way than other Georgia-based companies.
The United Parcel Service Inc. (NYSE: UPS) said Thursday that the money is going toward boosting more than $12 billion in investments to "expand the company’s Smart Logistics Network, significantly increase pension funding, and position the company to further enhance shareowner value."
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS Chairman and CEO, in a news release. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
“Through our current and future actions, we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility,” Abney added.
This plan goes alongside the Atlanta-based shipping giant's announcement that it plans to buy 14 new Boeing 747-8F aircraft, the largest planes the company has ever flown, plus four new 767 aircraft.
UPS said it plans to raise future capital spending above its previously committed 6-7 percent of annual revenue. UPS said it will also invest an additional $7 billion over three years for the construction and renovation of facilities, to acquire new aircraft and ground fleet vehicles, and to enhance the information technology platforms required to support the network, manage the business and power new customer solutions.
UPS said it also recently made a $5 billion tax-qualified contribution to the company’s three UPS-sponsored U.S. pension plans -- representing about $13,000 per participant.
“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” Abney said. “Our investments will create new jobs, secure existing jobs and expand opportunities for our people. We are committed to remaining a preferred employer by continuing to provide industry-leading compensation and excellent career opportunities.”
“Tax reform is a tremendous catalyst,” Abney said. “We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year.”
Other Georgia-based companies have announced plans for the extra money from the $1.25 trillion tax reform bill, but most have involved variations of a one-time $1,000 bonus. Home Depot Inc. (NYSE: HD), Aflac Inc. (NYSE: AFL), Total System Services Inc. (NYSE: TSS) and manufacturing company Mincey Marble announced those kinds of bonus following, while SunTrust Banks Inc. (NYSE: STI) also said it would increase its base wage to $15 an hour and made additional 401K contributions.
Trump’s Fault! ;) MAGA!
Crumbs.
Obama did this, not Trump.
Tons and tons of “deplorable crumbs”....more than enough to batter and deep fry Pelosi and all the rest....maybe enough for a national fish fry....
In “Pelosi Units”, I’m pretty sure 12 billion = 12 million crumbs!
It’s raining crumbs!!
The question begs, how big of a liability hole was in the Pension Plan and how much does this 12 billion back fill it.
I hope it is a precedent, their are a ton of companies with this liability and paying it off helps the the stock etc, as well as securing the Pensions going forward for those still in the plans ( many have been closed w/ boomers still in them and contributing ) . Win-Win IMHO...
Correction, 5 billion to the Pension Plan...
More Winning!
Pelosi and the dems are seething.
Good news for Americans is bad news for Democrats.
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