U.S. ecommerce, price hikes lift UPS profit but shares fall on outlook

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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.
 
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