Search

UPS "better" may be just as hard as "bigger" - Reuters

thekflow.blogspot.com

An United Parcel Service employee works at the new package sorting and delivery UPS hub in Corbeil-Essonnes and Evry, southern Paris, France, June 26, 2018. REUTERS/Charles Platiau

United Parcel Service (UPS.N) had a good pandemic as business boomed in everything from online shopping to vaccine delivery. Its shares soared 90% in the year to Tuesday, with the company reaching a $183 billion market value. Wednesday’s investor day, in which Chief Executive Carol TomĂ© presented the company’s "Better, not Bigger" strategic framework, didn’t go over so well. Investors sent the stock down 5% by mid-afternoon.

UPS is going to concentrate on more lucrative packages such as those sent by small businesses and healthcare companies. The goal is to ensure deliveries are on time and to increase returns on invested capital from 22% in 2020 to as high as 29% in 2023.

Revenue should still grow more than 6% annually, about half the rate of the U.S. small package market. Forgoing some business from bulk shippers like Amazon.com (AMZN.O) might not matter immediately. But Jeff Bezos's giant is investing in everything from airplanes to self-driving vehicles . The danger is that Amazon could create a logistics system to rival UPS and FedEx (FDX.N) combined. That may make it just as hard to be better as bigger. (By Robert Cyran)

On Twitter http://twitter.com/breakingviews

Capital Calls - More concise insights on global finance:

Amazon’s plastic surgery read more

World’s most expensive stamp misses asset boom read more

BBVA layoffs are just the start for Europe’s bank read more

Ferrari picks new driver for tech era read more

Chinese producer price pop pains policymakers read more


Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

Adblock test (Why?)



"may" - Google News
June 10, 2021 at 03:05AM
https://ift.tt/356niw4

UPS "better" may be just as hard as "bigger" - Reuters
"may" - Google News
https://ift.tt/3foH8qu
https://ift.tt/2zNW3tO

Bagikan Berita Ini

0 Response to "UPS "better" may be just as hard as "bigger" - Reuters"

Post a Comment


Powered by Blogger.