Wednesday, May 3, 2017

Working for the Weekend

UPS extends weekend operations test from three to 15 cities, and counting. 

E-commerce continues to drive the economy, and Big Brown wants to remain in the driver’s seat.

During an earnings call on April 27, UPS Chairman and CEO David Abney announced the company is expanding its test program of expedited weekend service from three major metropolitan areas to 15, with a target of 4,700 cities by this year’s holiday shipping season. A major part of the business model, said Abney, is for Saturday pickups to become Monday deliveries.

UPS said currency fluctuations, basically the strong U.S. dollar, cost the company $119 million in the first quarter and the effect could top $400 million for the full year – but save your tears. Overall, the global package giant, ranked number one on the Transport Topics list of largest for-hire delivery companies in North America, wound up with a 2.4% gain in first-quarter net income and a 6.2% surge in global revenue. Atlanta-based UPS earned $1.16 billion, or $1.32 a share, on sales of $15.32 billion for the three months ended March 31, the company reported April 27. In the year-ago quarter, Brown posted a profit of $1.13 billion, or $1.27, on revenue of $14.42 billion.

Domestic packages, the largest segment, posted a 5% gain in quarterly revenue to $9.54 billion, with a 2.4% decline in operating income to $1.08 billion. Business-to-customer shipping, a key element of e-commerce, continued to grow, largely at the expense of traditional retailers with stores.

Abney began the call by discussing UPS’ investment in technology to enhance its “smart global network.” He said the changes would create “the most sweeping transformation of our network in decades,” increasing the operational efficiency of employees and vehicles, and improving the experience for customers in using UPS.

Right up to the moment you cut their check.

Kirk Shearer

800-989-0054 x103

No comments: