The Financial Brand

The air freight and logistics industry is engaged in the provision of services which includes the delivery of packages, products and mails for either commercial or domestic purposes. The industry began as the provider of postal services alone but has now expanded to include the scope of international trade within its operations. Due to its indispensable role as the stimulator of trade all over the globe, it is a growing and profitable industry.

At the beginning of 2014, the volume of the goods traded through transportation was not very encouraging. However by March, the markets of the industry had increased by 5.3% when compared to markets at the same time the previous year. During this time, the capacity of the Air Freights and Logistics industry increased by 3.4% as well. Therefore, the significant improvement in the financial outlook when compared to March 2013, is a healthy sign for the industry. The growing markets in both developed and developing countries are indicating expansion of the industry. Along with the vital role that the emerging developing economies are playing in the growth of the industry, economic conditions in Europe and USA are also providing a favorable heads up to the industry. Export orders are rising in these economies which translates in to greater demand for the Air Freights and Logistics industry.

It is also argued that the industry needs to improve its value proposition if it is to attract more investment and growth. There is a possibility for the industry to maximize its efficiency and reduce its shipping time by a total of 48 hours. This time saving can be made possible with the utilization of modern infrastructural facilities and procedures to handle air cargo. The industry is currently underperforming as shipping time today is nearly the same as what it was forty years ago even though technological advancement today has surpassed the 40 year prior period by a huge margin. There is now an increasing pressure on the industry to develop new innovative procedures to quicken the pace at which deliveries are made worldwide. Adopting such measures are imperative to sustain the progress of the industry.

The Air Freights and logistic industry comprises of a few dominant firms that compete with each other for greater revenue and market share. The leading companies in the industry are FedEx, UPS and DHL. The highest stock price from amongst these three major firms is commanded by FedEx which stands at $138.2. Further stock market analysis of the industry has also revealed the most active firms in the industry in terms of dollar volume of stocks traded. The company which ranks number one in this list is FedEx. The second place is that of UPS (United Parcel Service) and the third place is occupied by Expeditors INTL. In order to obtain further useful and credible information about the industry and the firms operating within it, please visit the sit Bidnessetc.com. Moreover it is complement by Airline industry such as American Airline stock.

Understanding the two terms individually, ground freight refers to transportation of parcels and cargos through land from the point of origin to the destination point. Logistics on the other hand includes the management and control of the resources or goods being transported in order to ensure safe, quick and timely deliveries to the final consumer. If not to the final consumer, as it may not be possible due to water bodies or large distances, trucks or trains make deliveries to air or sea ports where the bulk is then transported. Ground freight shipping requires an average transit time of three to 10 days, depending on the pickup and delivery locations The main reason it has gained dominance over air or ship transport is affordability and easy transportation particularly in developing countries where the infrastructure may not be fully developed.

FedEx, the leading name in ground freight logistics has decided on a price change for FedEx ground offerings. Over the last three years FedEx Ground has improved transit times for more than half of the shipping lanes they serve, from one city to another. This has led to sooner delivery of parcels, improved customer satisfaction and has allowed it to gain a leading edge over others. Also to improve its credit position, FedEx ground services collect money at the time of delivery, providing service to customers without extending the credit period and keeping its cash flow position smooth. However, it was experiencing difficulties when it had to align payments between all three segments of FedEx express. Thus it introduced dimensional weight pricing on shipment of 3 feet ounce or more which is defined as “a common industry practice that sets the transportation price based on package volume–the amount of space a package occupies in relation to its actual weight.” Thus it organizes the operation for FedEx express. 

The companies in competition with each other in the ground and freight logistics under NEC and those quoted on the stock exchange include a list of 21 companies among which is Union Pacific Corporation. Union Pacific Corporation (UPC) owns transportation companies. Its principal operating company, Union Pacific Railroad Company, links 23 states in the western 66% of the country. It has the highest annual revenue recorded of 21,963.00 with a price to earning ratio set at 19.54 and annual net income of 4,388.00. The next in line is C.H. Robinson Worldwide, Inc. with an annual revenue of 12,752.08, price to earnings ratio set at 22.21 and annual net income of 415.90. With these two companies tied up in bottle neck competition, the latter has a higher P/E ratio which attracts investment from the potential shareholders, though its annual revenue is lower but its shares are worth a higher resale value at the stock market. For more information on financial trends among the best competing with each other, visit Bidnessetc.com.

Consumer Staples are important because they represent stable demand year in year out and consumers look forward to their consistent performance to fulfill their basic needs.

Recognizing the importance that the consumer staples possess for investors and consumers alike Bidness Etc runs a dedicated section for the sector containing an in depth analysis of sector specific information

All the major companies like Wal-Mart, Procter and Gamble stock, Unilever, Colgate Palmolive, PepsiCo, Coca-Cola Company, are extensively covered for all the hot latest news pertaining to the sector at large such as news relating to regulations in the sector as well as company specific news.

Additionally, they cover thorough fundamental analysis of the companies in the consumer staples sector through our “Investment 411” reports which display all key performance metrics and the specific company’s’ performance relative to stock indices, industry standards and competitors’ performance. We also cover analysts’ expectations about the future performance of the company.

Bidness Etc also caters to specifically those investors who look to invest in dividend rich stocks, by regularly posting dividend analysis for each of the companies including their historical trends for dividend payouts, their current dividend yield and all future plans for increasing shareholder value. That is, a complete picture for dividend investors.

The Consumer Staples section at Bidness Etc is by far the most comprehensive and well-presented data hub for financial information for companies in the sector.

This industry is particularly concerned with moving goods and parcels from the point of shipment to the point of destination via aircrafts. Logistics manages and controls the operations and resources in this process of transportation to ensure safe and timely deliveries to the customers. Air transport is a vital component of many international logistics networks, though, this kind of transportation is costly but the industry continues on the road to development due to the ease and speedier deliveries of goods or posts. It has grown so much in importance to the commercial world that without professional logistics support it is impossible to think about global trade since the movement of raw materials, work in progress and finished goods all require a well established logistics network.

Companies recognized under NEC in Air Freight and Logistics industry enlist Forward Air Corporation, FedEx Corporation, Expeditors International of Washington and United Parcel Service. Forward Air Corporation operates under two segments namely Forward Air, Inc. (Forward Air) and Forward Air Solutions, Inc. (FASI). Former provides a timely delivery of non-fragile items and handles related logistics to North American deferred freight market while the latter provides pool distribution services to Mid-Atlantic, Southeast, Midwest and Southwest continental United States. In March 2014 it had a revenue of 171.569 million$ with an earnings per share of 0.32. FedEx Corporation is a holding company, which provides services of e-commerce, transportation and business services. It has four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. For air freight it 660 aircrafts and has approximately 58,400 drop-off locations (including FedEx Office centers) in the integrated global network. It has earnings per share of 1.97 for the Quarter Ending Aug-14. Expeditors International of Washington, Inc. is engaged in the business of providing global logistics services. The Company offers its customers a seamless international network supporting the movement and strategic positioning of goods. It had a revenue of 1410.48 million US$ and earnings per share of 0.38685 US$ in March 2013. United Parcels Services delivers in 220 countries and territories catering to 1.1 million customers each working day. It is a package delivery business which provides logistics services including distribution and transportation of ground, ocean and airfreight. Airfleight industry is complemented by Airline industry such as American Airline stock. It had earnings per share of 1.24 in Quarter Ending June-14- details of individual companies can be further found on Bidnessetc.com.

Though this industry is expanding but some analysts are of the view that due to high competitiveness and need to be responsive to customers, the growth may slow down. Asia Pacific region, an exception to this trend, will be the fastest growing in 2014. Even China who remains unchallengeable in its global transportation through airfreight has experienced falling cargo by 7.3% in 2013 as compared to USA. Analysts are of the view that despite slowed down growth in certain regions, the growing consumer demands worldwide provides a great opportunity to the investors and logistic providers however they have to carefully examine economic and political trends in addition to any unforeseen circumstances- For more information on the prevailing trends visit Bidnessetc.com.

Pfizer might not be successful in buying AstraZeneca at least this fall but it is still trying to give it a shot. On the other hand it was also reported that Pfizeris is now looking forward to Activis as another target. The two factors that the company is considering are tax breaks and domicile.

This deal would prove to be fruitful for Pfizer because Actavis has a sound back up when it comes to the pharmaceutical business. The company boasts of a great and diversified portfolio comprising of generic medicines and also some other popular brands and few medicines that have recently been approved. This would result in great benefits for Pfizer as buying Actavis would add to their currently working products unit; this would further add new products to the portfolio of Pfizer which is in desperate need to some strategizing and assistance at the moment. Moreover Pfizer if it acquires Actavis they can shift their domicile to Dublin which can further result in potential benefits.

The company has not come upfront itself to speak on this topic.  They have not yet clearly stated that they are opting for Actavis, AstraZeneca or any other option that comes their way. Joan Campion who is the spokesperson for Pfizer stated that, "evaluate all opportunities, regardless of size, through the lens of value creation for our shareholders and enhancing the competitiveness of our business.” Moreover other analysts and media reports have also listed down few other companies that can be a good option for Pfizer such as GlaxoSmithKline. Even Pfizer might opt for buying Allegan.

These deals might prove to be extremely fruitful for Pfizer stock since they have been struggling for a fairly long time and now need to come with something that would result as a game changer for them. Buying on a stable pharmaceutical might be just the right thing that needs to be done in order to give it the boost it needs. Pfizer is apparently doing the right thing by not focusing on one company as keeping options open will result in benefits in terms of making the right choice.

Hence in a nutshell, Pfizer will soon emerge out of all its miseries if it buys the right company which would not only add to their portfolio but assist it in sailing swiftly to the shore.