UPS network revamp bolsters profit in holiday quarter, shares jump - Reuters
United Parcel Service Inc’s multi-billion-dollar effort to revamp its network helped it deliver better-than-expected profit in the crucial holiday fourth quarter, driving down costs as e-commerce deliveries surged to record levels.
Investors cheered the news, sending shares up 6.6 percent to $107.88 in morning trading.
Increased investment in modernizing its network helped the world’s biggest package delivery firm better manage a surge of Christmas packages as more consumers shifted to online shopping, executives said. UPS spent $6.6 billion in 2018 as part of a three-year plan to automate package-sorting hubs, make routes more efficient and invest in airplanes and other equipment.
Analysts said lower operating costs helped the company exceed profit expectations as well.
United Parcel Service Inc’s multi-billion-dollar effort to revamp its network helped it deliver better-than-expected profit in the crucial holiday fourth quarter, driving down costs as e-commerce deliveries surged to record levels.
Investors cheered the news, sending shares up 6.6 percent to $107.88 in morning trading.
Increased investment in modernizing its network helped the world’s biggest package delivery firm better manage a surge of Christmas packages as more consumers shifted to online shopping, executives said. UPS spent $6.6 billion in 2018 as part of a three-year plan to automate package-sorting hubs, make routes more efficient and invest in airplanes and other equipment.
Analysts said lower operating costs helped the company exceed profit expectations as well.
