UPS Tumbles After $1 Billion Savings Goal Disappoints Investors

[cheryl]

UPS Tumbles After $1 Billion Savings Goal Disappoints Investors - Bloomberg

• Capital improvement seen boosting profit up to $1.20 a share
• Courier to focus on small businesses, health-care customers

United Parcel Service Inc. dropped after saying it expects to reap $1 billion of annual cost savings from stepped-up investment to make its network more efficient while handling a rush of packages from booming e-commerce.

The company said it would incur one-time charges of between $550 million and $750 million for the plan, which includes ordering new aircraft, building automated sorting centers and offering employees early retirement. UPS also plans to focus on more profitable small-business and health-care customers.

 

[oldngray]

Capital expenditures in a contract year.

Who could have predicted it?