Lt. Governor Lee Fisher will be in Wilmington on Saturday, July 26 from 1-2:30PM at the Kelly Center, Wilmington College, to hold a public forum about the DHL situation.

The event is open to the public, and the Wilmington- Clinton County Chamber of Commerce is urging area business owners to attend.

The Lt. Governor is expected to bring one or more small business specialists from the Ohip Department of Development with him to the forum.

Deutsche Post AG’s DHL Express should reimburse ABX Air Inc. for overhead expenses related to a contract in November, arbitrators ruled.

ABX and DHL will begin discussing how much of ABX’s overhead DHL should pay, Wilmington, Ohio-based ABX said today in a statement distributed by Business Wire.

ABX claimed that DHL defaulted on an agreement Nov. 5 by failing to repay it for certain costs. DHL contended some expenses no longer had to be reimbursed because ABX’s revenue from other customers exceeded 10 percent of total sales.

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net.

Customers are using UPS shipping services within the U.S. less amid a slumping U.S. economy and soaring fuel prices. The company’s international business was affected as imports into the country declined in the second quarter.

As it reported a nearly 21 percent profit decline in the April-June period and lowered its outlook for the year, United Parcel Service Inc. said Tuesday it was working to cut costs.

“Brace yourselves for more tough times,” Edward Jones analyst Dan Ortwerth said.

Even so, Ortwerth said the Atlanta-based company has the financial wherewithal to steer through the rough patch. UPS shares rose more than 4 percent in Tuesday trading.

“There is far too much long-term competitive pressure as the economy globalizes to meet customer needs and to meet them rapidly, and businesses cannot afford to walk away from the best services available to them,” he said.

UPS, hit by an average daily volume decline in the U.S. and soaring fuel costs, said its profit was $873 million, or 85 cents a share, in the second quarter, compared to a profit of $1.10 billion, or $1.04 a share, for the same period a year ago. Revenue grew to $13 billion from $12.2 billion.

“We’re feeling the impact of higher energy costs throughout the company,” Chief Executive Scott Davis told analysts during a conference call.

UPS’ international business, usually a strong spot for the company, saw moderating growth in the second quarter as import volume into the U.S. declined. The company has seen slower growth in premium services in the major regions of the world. The international unit still saw a volume increase in the quarter, thanks to exports from various countries.

Executives said they were taking several initiatives to control costs, including a freeze on hiring non-sales jobs.

The earnings results for the most recent quarter met Wall Street expectations, which were reduced after UPS provided updated guidance on June 23. Analysts polled by Thomson Financial, on average, expected earnings of 85 cents a share in the April-June quarter.

UPS can pass higher fuel costs on to customers as a fuel surcharge on shipments. However, the surcharge increases have not kept pace with rapidly rising fuel prices.

Operationally, UPS’ average daily package volume in the U.S. declined 1.3 percent in the second quarter. Domestic next-day air shipments declined 6.1 percent, while deferred shipments declined 2.3 percent. Ground shipments declined a slight 0.7 percent.

As she unloaded packages from her SUV and dropped them off at a UPS Store in Atlanta on Tuesday, Amy Mattingly, a 41-year-old homemaker, said with a smile, “Nothing’s that important it has to get there the next day.”

She said that if the economy worsens and gas prices continue to soar, she may buy things online more and have them shipped to her, rather than drive to a store to shop.

“I’m more likely to do that than walk around a store and look,” she said.

Online shipping could be a way for UPS to increase revenue if people’s shopping patterns change substantially.

“We think that is one area where there is an opportunity,” Chief Financial Officer Kurt Kuehn said in an interview.

For the first half of the year, UPS earned $1.78 billion, or $1.72 a share, compared to a profit of $1.95 billion, or $1.82 a share, for the same period a year earlier. Six-month revenue rose 6.6 percent to $25.68 billion, compared to $24.1 billion recorded a year earlier.

Going forward, UPS said it expects earnings per share for 2008 to be within a range of $3.50 to $3.70. Previously, it expected earnings per share for the full year to be between $3.90 and $4.20. Analysts expected $3.64 per share for the year.

Davis said UPS’ strategy on acquisitions has not changed. The company is interested in expanding its international package business. Asia and Europe are of particular interest to the company, he said.

Kuehn said the company’s stock buyback program remains on pace.

UPS is working out a contract to carry some air packages for DHL, the struggling U.S.-based express shipping unit of German postal service Deutsche Post AG. UPS, when it announced the proposed collaboration on May 28, predicted that the deal, when completed, will add up to $1 billion in annual revenue for the company.

The deal could be a significant blow to DHL’s current vendors for the air shipments UPS is seeking to take over. Thousands of jobs could be lost in Ohio, where some officials are trying to scuttle the deal.

UPS shares rose $2.65, or 4.5 percent, to close at $62.11 in Tuesday trading.

An arbitrator has ruled that DHL must fully reimburse ABX Air Inc. for its 2007 general overhead expenses but that, as of Jan. 1, is not obligated to reimburse overhead expenses attributable to ABX’s non-DHL operations.

The ruling also held that ABX Air’s parent Air Transport Services Group Inc. is solely responsible for its last year expenses it incurred to consider and analyze an expression of interest by ASTAR Air Cargo in acquiring ABX Air last June.

Air Transport Services Group said it expects a $2.4 million reduction in its second-quarter 2008 pre-tax earnings associated primarily with the ASTAR matter, according to a statement released July 17.

Air Transport Services Group (NASDAQ: ASTG), headquartered in Wilmington, provides cargo airline services worldwide.

Package delivery company United Parcel Service Inc (UPS.N: Quote, Profile, Research, Stock Buzz) is “making good progress” on concluding a 10-year agreement to provide North American air service for DHL, the company’s top official said on Tuesday.

UPS and the express unit of Deutsche Post (DPWGn.DE: Quote, Profile, Research, Stock Buzz) said during the second quarter that they were working on an agreement for UPS to haul DHL’s express, deferred and international packages within the United States and between the United States, Canada and Mexico. (Reporting by Nick Carey, editing by Gerald E. McCormick)

Tags: DHL

“In a year wracked by economic uncertainty and stumbling global stock markets, Russia has been an unlikely standout performer,” explains global investment expert Nick Vardy.

In his Global Bull Market Alert, the advisor asserts, “The Market Vectors Russia ETF (NYSE: RSX), is a bet that Russia’s buoyant stock market performance this year is set to continue.”

“Even as China is now down by more than 50%, bad boy Russia’s performance has been second only to Brazil this year and it actually has outperformed its BRIC rival by a hair during the past three months.

“Despite Russia’s reputation as a country rife with corruption, scant respect for genuine democracy and the Rule of Law, it’s always hard to argue with success.

“Scan the Russian press, and it quickly becomes apparent that the contrast between the collective economic mood of Russia and the United States couldn’t be sharper. While U.S. drivers cringe at $4 per gallon gas, Russia celebrates high oil prices as the source of its newfound wealth.

“To add insult to injury, the most recent Forbes 400 list confirms that Moscow now boasts more billionaires than New York City.

“Vladimir Putin’s political shenanigans notwithstanding, it’s hard to deny Russian economic achievements. Soaring global demand for its precious commodities and a rising middle class whose disposable income has exploded during the past few years have fueled Russia’s decade-long economic boom.

“During that period, Russia’s nominal gross domestic product soared to $1.7 trillion in 2007 from less than $200 billion in 1999. While the US struggles to skirt recession, Russia’s government expects GDP to hit 7.6% for 2008.

“Goldman Sachs predicts that Russia’s economy will overtake Britain, France and Germany during the next few decades to become the biggest economy in Europe.

“And after the Chinese Olympics in Beijing this summer, expect attention to turn toward Russia as it gets set to take the world stage in six years when it will be hosting the Winter Olympics in 2014. In preparation for the games, Russia is planning to invest $200 billion in its own crumbling infrastructure.

“The single best way to play Russia’s economy and stock market is through the Market Vectors Russia ETF, which is weighted most heavily in oil and gas (40%), metals (25%), telecom (13%) and finance (11%).

“Its largest individual weightings are in Lukoil (10%), Russia’s second-largest oil producer, and Gazprom (8%), the world’s largest gas company.

“VimpelCom, Russia’s second-largest mobile provider, followed by telecoms Mobile TeleSystems and Rostelecom, steel producer Mechel, and Wimm-Bill-Dann Foods make up the ETF’s next largest holdings.”

Each day, Steven Halpern’s TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation’s leading financial newsletter advisors.

Deutsche Post AG’s DHL Express should reimburse ABX Air Inc. for overhead expenses related to a contract in November, arbitrators ruled.

ABX and DHL will begin discussing how much of ABX’s overhead DHL should pay, Wilmington, Ohio-based ABX said today in a statement distributed by Business Wire.

ABX claimed that DHL defaulted on an agreement Nov. 5 by failing to repay it for certain costs. DHL contended some expenses no longer had to be reimbursed because ABX’s revenue from other customers exceeded 10 percent of total sales.

Covering a land area of about 1.634 million square meters east aside of the airports eastern runway, the hub is FedEx’s biggest one in Asia-Pacific, composed of a service zone and a flight zone. And the service zone has passed regulatory review to start business on July 9.

It is equipped with an emergency electricity generating system, capable of resuming power supply eight to 14 seconds after power cut. Its distribution center is designed with first-class lightning protection, and is able to resist eight to whole gale as well as strong earthquake.

The transport base is expected to have a daily throughput of 1,823 tons, including 179,000 express parcels. And local officials hope that it would lure more investors into Guangdong Province.

The difficulties that have caused low turnout in the past will be compounded by September or October primaries in 11 states and the District of Columbia, which delays mailing absentee ballots. Efforts to expand electronic voting have slowed.

“It’s going to be a harder year for our soldiers and military personnel and others who are overseas,” Minnesota Secretary of State Mark Ritchie said.

FedEx, working with the private Overseas Vote Foundation, offers a speedier, and usually costlier, alternative to the snail-like pace of mail that has beset Americans abroad.

The delivery service can pick up ballots in 89 countries and return them within five days for reduced fees of up to $23.50. The service, run by each FedEx region and offered free in Australia, New Zealand and 12 Asian countries, includes tracking capabilities and confirmation of receipt.

Voters who use the foundation’s Web site to access the service can register to vote and apply for a ballot online, a process that can take weeks

otherwise.

“This is the first election where all those things are going to be available,” said Susan Dzieduszycka-Suinat, president of the Overseas Vote Foundation.

In 2006, about 6 million Americans abroad, active-duty members of the military and their families were eligible to vote, but fewer than 1 million ballots were requested, and about 330,000 were cast or counted, according to the U.S. Election Assistance Commission. That’s a 5.5 percent turnout rate.

More than two-thirds of the ballots that were not counted were returned as undeliverable. About 10 percent of would-be voters missed the

deadline.

Jeff Burger, military mail specialist for the U.S. Postal Service, said most delays are caused by voters who procrastinate and counties that mail blank ballots too late.

“The normal process would work fine if people were conscientious and did things in a timely manner,” he said.

Efforts to speed up the process vary from state to state. Thirty-eight states will send blank ballots by fax, 18 by e-mail. Twenty-five will accept them back by fax, nine by e-mail, which prevents secrecy.

Michael Caudell-Feagan, director of the Pew Center on the States’ Make Voting Work program, said electronic voting is the best long-term

solution.

Rosemary Rodriguez, chairwoman of the Election Assistance Commission, said if the FedEx program is adequately publicized, “It might really change the numbers that we’re getting of overseas ballots.”