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
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