Despite the slow economy and the turmoil affecting the government’s Postal Service, private sector carrier United Parcel Service says they are doing just fine, thank you. UPS will increase revenue 6 to 8 percent annually through 2016 and raise earnings 10 to 15 percent during that period, company executives said Thursday at a conference in Louisville, KY.
In fact, the firm has decided what it wants in its own Christmas stocking: more shares of itself. Atlanta-based UPS will repurchase $2.7 billion of its stock from shareholders this year and a minimum of $8 billion through 2014, the company told analysts. The package and freight giant is gearing up for what it expects to be one of its best peak seasons, including the introduction of an enhanced residential delivery service.
“Our long-term outlook remains positive despite recent economic uncertainty,” UPS Chairman and CEO Scott Davis told analysts. CFO Kurt Kuehn said the $49.55 billion company would repurchase an additional $700 million in stock this year, a 35 percent increase from previous projections.
The nation’s largest transportation operator plans major international and domestic expansion and will continue to invest in technology and facilities, executives said. UPS also plans a $200 million expansion of its European air hub in Cologne, Germany, increasing its capacity by 65 percent or 80,000 more packages per hour.