UPS slashes investment, buybacks amid coronavirus disruption - Reuters
United Parcel Service Inc will slash $1 billion from this year’s capital spending budget and reduce planned share buybacks by almost $800 million as it adjusts to “unprecedented” changes wrought by the novel coronavirus outbreak.
Shares sank 5% to $97.47 in midday trading after the world’s biggest package delivery company, like dozens of other major firms, withdrew its financial 2020 forecasts after missing analyst estimates for profit in the first quarter.
UPS is under pressure to squeeze more profit out of booming e-commerce shipments as Amazon.com Inc looms as a double threat. The e-commerce giant is UPS’s largest customer and is building a rival delivery network.
United Parcel Service Inc will slash $1 billion from this year’s capital spending budget and reduce planned share buybacks by almost $800 million as it adjusts to “unprecedented” changes wrought by the novel coronavirus outbreak.
Shares sank 5% to $97.47 in midday trading after the world’s biggest package delivery company, like dozens of other major firms, withdrew its financial 2020 forecasts after missing analyst estimates for profit in the first quarter.
UPS is under pressure to squeeze more profit out of booming e-commerce shipments as Amazon.com Inc looms as a double threat. The e-commerce giant is UPS’s largest customer and is building a rival delivery network.
