UPS shares slide on 2018 outlook, spending plans
The world’s largest package delivery company and rival FedEx Corp have already spent billions of dollars upgrading their networks to handle surging e-commerce package volumes, weighing on margins and leaving investors frustrated over the expense. The investments show UPS is betting that if it can handle more volume it can increase the number of packages it delivers to households, and eventually improve margins and profitability, versus pushing for higher prices and less volume, said Stephens analyst Jack Atkins. “If they can’t get the delivery density – to date we haven’t seen a yearly improvement in density – that’s going to be a big problem,” Atkins said.
