UPS Falls as Peak Season Costs Crimp Annual Profit, 2015 Outlook

[cheryl]

UPS Falls as Peak Season Costs Crimp Annual Profit, 2015 Outlook - Bloomberg

United Parcel Service Inc. (UPS) fell the most in more than six years after it said 2014 earnings were below prior forecasts as an overexpanded program to handle a deluge of holiday shipments left its network underutilized on some other days.

“UPS invested heavily to ensure we would provide excellent service during peak when deliveries more than double,” said David Abney, UPS chief executive officer. “Though customers enjoyed high quality service, it came at a cost to UPS. Going forward, we will reduce operating costs and implement new pricing strategies during peak season.”

 

[moreluck]

So they are pre-reporting before they report........when will they learn. Can we expect a huge fall when they actually report? Probably.

 

[Jkloc420]

Ups screwed up so bad in 2013 that customers went away from them in 2014. It is going to take a few years to get that volume back. Management won't get that though.

 

[oldngray]

So they are pre-reporting before they report........when will they learn. Can we expect a huge fall when they actually report? Probably.

Pre report triggers an early sell off then people buy on the bounce. I think that is what UPS tried to do anyway. If there was a bad report with no warning it would tank worse.

 

[Indecisi0n]

Ups screwed up so bad in 2013 that customers went away from them in 2014. It is going to take a few years to get that volume back. Management won't get that though.

Ups will make cuts this peak in order to save on profits which will make this peak a disaster. Next peak they will invest again and go round and round like a dog chasing his tail.

 

[bbsam]

Ups will make cuts this peak in order to save on profits which will make this peak a disaster. Next peak they will invest again and go round and round like a retarded dog chasing his tail.

I think UPS will go back to 2013 standards and let the public adjust to a "new normal".

 

[undies]

Extra overtime and less productive drivers due to Orion cost money! Driving 1-2 fewer miles, priceless.

 

[rod]

All I know is that I bet no one is bragging next year that "it's the easiest peak I've had".

 

[Jkloc420]

All I know is that I bet no one is bragging next year that "it's the easiest peak I've had".

It was a pretty easy peak. It is funny because UPS should have been on top of peaks from the begainning. You can't just go all out from one peak and expect outstanding results. You screwed people over in previous peaks, the customer isn't going to keep coming back. Their going to find alternative solutions.

 

[RealPerson]

No wonder they Raised PPH this week and had the PT sups going crazy... They are cutting people on my shift

http://www.cnbc.com/id/102363057

 

[thisjobaintforeverybody]

Been with the company for 11 years and have a chance to go full time package car in the next few weeks if I accept the position. But this 4th quarter news has me a little scared jumping in knowing that management will overreact to the headlines! What do you guys think? Will this be one the worst years ever for a package car driver?

 

[silenze]

Every year is the worst year ever

 

[CHALLY9TX]

This peak I expect to work no more than 60 hours a week. Just like always.

 

[Overpaid Union Thug]

But eventually ORION will be in every center in America. ALL IS SAVED!

 

[undies]

But eventually ORION will be in every center in America. ALL IS SAVED!

Except that they turn it off during peak.

 

[TooTechie]

This peak I expect to work no more than 60 hours a week. Just like always.

Don't forget the change in dot hours.

 

[brown bomber]

wasn't last year the first peak season that UPS experienced ??