U.S. ecommerce, price hikes lift UPS profit but shares fall on outlook - Reuters
United Parcel Service Inc on Thursday reported a higher-than-expected quarterly net profit due to rising ecommerce deliveries but investors worried about the company's performance in the back-half of the year and shares fell 4 percent.
The world's largest package delivery company said quarterly revenue at its core U.S. domestic package service rose 8 percent to $9.7 billion. Revenue per package in the domestic unit was up 3 percent, reflecting raised prices.
Both UPS and its main rival, FedEx Corp, have spent billions of dollars in upgrading their networks to handle rapidly rising e-commerce package volumes, particularly in the weeks leading up to Christmas, leaving investors frustrated over the expense.
United Parcel Service Inc on Thursday reported a higher-than-expected quarterly net profit due to rising ecommerce deliveries but investors worried about the company's performance in the back-half of the year and shares fell 4 percent.
The world's largest package delivery company said quarterly revenue at its core U.S. domestic package service rose 8 percent to $9.7 billion. Revenue per package in the domestic unit was up 3 percent, reflecting raised prices.
Both UPS and its main rival, FedEx Corp, have spent billions of dollars in upgrading their networks to handle rapidly rising e-commerce package volumes, particularly in the weeks leading up to Christmas, leaving investors frustrated over the expense.