Money Minute: Apple Profit Falls Despite iPhone Sales; UPS' Plan to Save Gas

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One company's new navigation system could slash gas consumption. That and more top money stories you need to know today.

UPS (UPS) has developed its own navigation system for its drivers. It says the new technology could save the company $50 million a year by reducing each drivers route by just one mile each day. UPS says the technology will save it about 1½ million gallons of gas a year.

And this will help all drivers, not just those from UPS. AAA says the national average price for a gallon of regular is $3.28, the lowest its been this year. And that's not all. AAA says it expects prices to continue to fall.

Apple's Latest iPhone Models Go On Sale Across U.S.
Andrew Burton/Getty Images
Apple's quarterly profit fell by 9 percent from a year ago, despite robust iPhone sales. The company sold 33.8 million iPhones over the three-month period, up 26 percent. The less expensive iPhone 5C model disappointed though, as did sales of the iPad. The company also registered $4.4 billion in iTunes downloads. Apple (AAPL) stock is up 18 percent over the past three months, but still down from a year ago.

The Dow Jones industrial average (^DJI) lost a single point Monday, and the Nasdaq composite index (^IXIC). But the Standard & Poor's 500 index (^GPSC) edged up 2 points to set another record.

The controversial nutrition supplement maker Herbalife (HLF) posted a big jump in earnings, easily topping Wall Street expectations for the 19th straight quarter. Herbalife is at the center of a battle between Wall Street titans, some of whom claim its run like a Ponzi scheme, and others who say its a great growth company. Shares of Herbalife have more than doubled this year.

And policy makers at the Federal Reserve kick off a two-day meeting, and the outcome is likely to be more of the same. The Fed is widely expected to continue its $85 billion a month bond buyback program, but could indicate that it will begin to cut back on those purchases early next year. Analysts say the Fed is waiting for more data on the economy before taking action.

-Produced by Drew Trachtenberg.


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27 Comments

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cathybugles

UPS goes by my house in the morning. Can\'t stop because air shipments must be delivered before noon. Then they come back in the afternoon to deliver mine. Talk about waste.

October 30 2013 at 10:36 AM Report abuse rate up rate down Reply
betty_brock

The big truck that travel cross country are full.

October 29 2013 at 4:19 PM Report abuse rate up rate down Reply
Bill Weiss

U.P.S does not need to save gas . Just get smaller trucks (most of the cargo area is empty ) They could use Toyota mini vans and be more efficient ! They drive the large trucks for prestige .

October 29 2013 at 3:01 PM Report abuse -2 rate up rate down Reply
1 reply to Bill Weiss's comment
pm0501

Uh.... when I was working (retired nearly 10 years ago) the first truck in our dock was UPS and it couldn't have been packed any tighter. One improvement could be the aerodynamic design of the trucks. Those flat boxy front ends offer a lot of wind resistance.

Sure, smaller trucks would help but it would also mean adding more trucks and more union wage drivers to handle the workload. What they save in fuel will be gobbled up by higher labor costs. CALS (Computer Aided Logistics System) would greatly improve efficiency.

October 29 2013 at 4:16 PM Report abuse rate up rate down Reply
Bill Weiss

Apple lost it's founder and innovator ! Apple once took on I.B.M and won . But with it's founder gone they no longer have a insight into the future . The are now taking on garbage collecting ,and winning at it ! Thee are trying to exist by tricking everyone with new features instead of innovations !!

October 29 2013 at 2:55 PM Report abuse rate up rate down Reply
ladycoco

"(T)he lowest its been this year.... Do you mean the lowest IT HAS (or it's) been this year? What has happened to journalism? Doesn't anyone use proper grammar any more? It seems that anything goes in news reports anymore.

October 29 2013 at 2:25 PM Report abuse rate up rate down Reply
bildaws

"UPS' Plan to Save Gas"

Hello USPS, anyone listening?

October 29 2013 at 12:10 PM Report abuse rate up rate down Reply
1 reply to bildaws's comment
beckys35home

The big difference is the USPS delivering house to house whereas UPS doesn't.

October 29 2013 at 2:53 PM Report abuse +1 rate up rate down Reply
mpusairsret

Frito Lay saves gas by switching to electric vehicles on the shorter routes.

October 29 2013 at 12:02 PM Report abuse rate up rate down Reply
en2tv1

They need to do something. I worked for UPS last Fall, at Sky Harbor Airport in Phoenix, AZ and they did not receive No where near what they had anticipated. They kept expecting at least 25 thousand packages a night.......They were lucky to receive 3500. Most interesting *Amazon has a warehouse less than 20 miles away.

October 29 2013 at 11:56 AM Report abuse rate up rate down Reply
ladybugpuch

Their travel time is shortened but the package gets delivered to somebody else that's closer to the main route. My package just got delivered to someone at the begining of my street instead of to my house, which is located further into the street. Whatever you're doing might be good for the company but it's a heck of an inconvenience to customers, those people who make you a business to begin with. Maybe you should just use the extra gas.

October 29 2013 at 11:54 AM Report abuse rate up rate down Reply
the1autodoctor

Hey UPS Georgia is a long way from Washington DC but it looks like your using thier calulator. 1.5 milion gallons of gasoline would be less than 5 million bucks.Where's the other 45 million coming from , pay roll taxes and union dues that you won't need to pay ?

October 29 2013 at 11:42 AM Report abuse rate up rate down Reply
1 reply to the1autodoctor's comment
sueat103

There is more calculated into the equation than the reduction of gas. If mileage is reduced, it affects wear and tear on the vehicle, oil, tire wear, gas etc. come on your the 'autodoctor' you should know that.

October 29 2013 at 12:46 PM Report abuse +1 rate up rate down Reply
1 reply to sueat103's comment
beckys35home

Reducing miles driven by 1 mile only results in 365 less miles driven in a year.....doesnt add or subtract substantially to vehicle maintenace.

October 29 2013 at 2:57 PM Report abuse rate up rate down