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.”
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.”