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.
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.
