UPS Reaps the Reward of Price Increases

cheryl

I started this.
Staff member
UPS Reaps the Reward of Price Increases - Bloomberg

  • Revenue per package rose 3% in U.S., exceeding expectations
  • Courier is trying to improve efficiency of home deliveries

United Parcel Service Inc. is finally figuring out how to make money from the surge in online shopping.

Revenue per package in the U.S. rose 3 percent in the second quarter, the courier said Thursday as it reported earnings. Analysts were estimating a gain of about 2 percent from the higher prices and new fees on over-sized items the company implemented this year.

The sales increase for each parcel is bolstering results as UPS ramps up capital spending by more than a third this year to automate warehouses, add new jets and upgrade technology. The world’s largest package-delivery company is racing to improve the efficiency of residential deliveries, which are booming because of e-commerce -- but are far less profitable than shipments to businesses.
 

HEFFERNAN

Huge Member
Huh... maybe now we can afford to hire 1 or 2 more people.
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