|
“The actions we are taking to reconfigure our network and reduce
cost across our business could not be timelier,” CEO Carol Tomé
said in a statement on Tuesday. "The macro environment may be
uncertain, but with our actions, we will emerge as an even
stronger, more nimble UPS.”
In January UPS announced that it had reached a deal with Amazon,
its biggest customer, to lower its volume by more than 50% by
the second half of 2026.
During UPS’ fourth-quarter earnings conference call in January,
Tomé said that the company had partnered with Amazon for almost
30 years and that when its contract came up this year, UPS
decided to reassess the relationship.
“Amazon is our largest customer but it’s not our most profitable
customer,” Tomé said at the time. “Its margin is very dilutive
to the U.S. domestic business.”
Tomé said that UPS considered various options and determined
that the volume reduction was the best alternative.
The company employs about 490,000 workers, according to FactSet.
United Parcel Service Inc. also reported its first-quarter
financial results on Tuesday. The Atlanta-based company earned
$1.19 billion, or $$1.40 per share, in the quarter ended March
31.
Stripping out certain items, earnings were $1.49 per share.
That's better than the $1.44 per share that analysts polled by
Zacks Investment Research were calling for.
Revenue totaled $21.55 billion, beating Wall Street's estimate
of $21.06 billion.
UPS said that it wasn't providing any updates to its previously
announced full-year outlook, given current macroeconomic
uncertainty. The company previously said that it expected 2025
revenue of approximately $89 billion.
Shares of UPS rose slightly in morning trading.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
