UPS plan to boost business shipping falls short with investors

Discussion in 'The Latest UPS Headlines' started by cheryl, Sep 13, 2018.

  1. cheryl

    cheryl I started this. Staff Member

    UPS plan to boost business shipping falls short with investors - Reuters

    United Parcel Service Inc is doubling down on shipments between businesses as part of a $20 billion overhaul aimed at automating its facilities and offsetting the profit squeeze from lower-profit home deliveries from large retailers like Amazon.com.

    The world's biggest package delivery firm's embrace of expensive "last-mile" home shipments of everything from clothes to car tires has squeezed margins as it competes with rival shipper FedEx Corp, which accepts less of that business.

    UPS shares fell 2.9 percent to $119.69 on Thursday, after executives boosted long-term earnings targets while maintaining cost-reduction goals and stopping short of saying they would take fewer home deliveries.