UPS Expecting To Regain Net Income Through Buybacks

United Parcel Services, Inc.

had a meeting with Goldman Sachs with UPS CEO D. Scott Davis, CFO Kurt Kuehn and COO David Abney, and worldwide sales and marketing head Alan Gershenhorn, where management announced that the company will yield increasing returns that will return over 100% of net income to shareholders in 2011E (~$4B) through a mix of share buyback and dividends, according to Goldman. Goldman believes that domestic pricing continues to improve, driven by reorganization, a more rational industry, and updated sales incentives that are based on yield. Additionally, package volumes have remained strong and the reorganization and expansion have helped to continue lowering costs. Goldman reiterates its Buy rating and $78 price target. United Parcel Service, Inc. closed yesterday at $67.45.