UPS COO’s retirement overshadows e-commerce fueled profit rise – Reuters

United Parcel Service Inc’s e-commerce fueled quarterly profit beat on Tuesday was overshadowed by news that Jim Barber, widely viewed as the world’s biggest parcel delivery firm’s next leader, would retire at year-end.

Shares in Atlanta-based UPS fell 5 percent to $112.59 on news of the departure of Chief Operating Officer Barber, who oversees the company’s global small package, freight, supply chain, freight forwarding and engineering, and was instrumental in the company’s turnaround.

“Investors assumed he was going to be the next CEO and this caught us by surprise. Unfortunately the market does not like surprises,” Seaport Global analyst Kevin Sterling said.

Jim Barber, UPS Chief Operating Officer Announces Retirement

UPS (NYSE:UPS) today announced Jim Barber, 59, UPS Chief Operating Officer will retire at the end of December 2019. As UPS COO, Barber is responsible for the company’s global small package, freight, supply chain and freight forwarding units and global engineering. Serving UPS for nearly 35 years, he joined the company as a delivery driver in 1985 and rose through positions of increasing responsibility.

“We deeply appreciate Jim’s many contributions to UPS,” said David Abney, UPS Chairman and CEO. “He guided our International teams to strong growth and performance for successive years, even when market conditions were challenging. More recently he built a strong team and helped them implement plans for improved performance in our Domestic and Supply Chain segments, as shown in our operating results.”

Barber is credited for leading UPS’s international growth in both mature and emerging Asian and European markets, while more recently prioritizing investments to capture opportunities in south-to-south trade in the Indian subcontinent, the Middle East and Africa. Barber is also hailed for his service on the Board of UNICEF USA, demonstrating his passion for humanitarian aid and community development around the world.

UPS Releases 3Q 2019 Earnings

Operating Profit Up More Than 20%, with Margin Expansion in All Segments

  • 3Q19 EPS of $2.01, Up More Than 16%; Adjusted* EPS Up 13.7% to $2.07
  • U.S. Daily Volume Grew Above 9%; Next Day Air Volume Jumped Nearly 24%
  • U.S. Operating Profit Rose Over 28%; Grew Nearly 26% on an Adjusted Basis
  • Positive Operating Leverage in U.S. Driven by Lower Unit Cost
  • International Operating Profit Up 24.4%; and 20.3% on an Adjusted Basis
  • Supply Chain and Freight Operating Margin of 7.3%; Adjusted Margin of 7.6%
  • Reaffirms 2019 Adjusted EPS and Raises Adjusted FCF Target to Over $4.0B

UPS has a new flight path — drone home delivery – Yahoo

United Parcel Service subsidiary Flight Forward announced new partnerships that will expand its medical drone deliveries to hospitals and begin home deliveries to CVS pharmacy customers.

Bala Ganesh, UPS’s vice president of advanced technology, said more partnerships are coming. “We have engaged the afterburners,” he said. “Now that we have gotten regulatory approvals you are going to see these announcements flying fast and furious in the near future.”

Google’s Wing, a drone competitor of UPS owned by Alphabet, began delivering medical products to homes last week from a Walgreens in Christiansburg, Virginia. It’s a limited test program that operates within a four-mile radius. Wing has also partnered with FedEx for eventual parcel package delivery.