UPS Cutting Spending, Looking Overseas For Growth

Discussion in 'The Latest UPS Headlines' started by cheryl, Sep 1, 2008.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Cutting Spending, Looking Overseas For Growth - Courant

    Expectations of a weak U.S. economy and high fuel prices continuing into next year have prompted the world's largest delivery company to enact a hiring freeze and significantly reduce its spending.

    The question for investors is whether the company's stock has adequately discounted those problems. Shares of United Parcel Service (UPS) are down 10 percent this year after last year's 6 percent decline. UPS handles an average of 15 million shipments a day throughout the world, with the U.S. package segment generating two-thirds of its revenue. The company's net income was down 21 percent in the second quarter, in part because of lower demand for its premium shipping services