UPS faces third straight year of decline

RXO

31/12/2024 14:05

** Shares of parcel delivery firm UPS  UPS.N  on track to
drop more than 20% for 2024, marking their third straight year
of decline
    ** Customers' ongoing switch to slower, cheaper deliveries
has continued to trouble UPS, forcing it to look at cost-cutting
measures to counter fall in demand 
    ** Co announced to cut more than 12,000 jobs in January; in
June, it sold its freight brokerage business, Coyote, to RXO
 RXO.N  for $1.03 bln  
    ** UPS fell short of estimates for quarterly profit once in
last four quarters, but missed revenue estimates thrice in same
time period - LSEG data
    ** Extreme weather events such as Hurricanes Helene and
Milton also impacted co's services throughout 2024
     ** However, UPS in April won USPS contract over rival FedEx
 FDX.N , with co expecting contract to be profitable in its
first year and throughout the more than five-year deal
    ** Analysts believe co to be headed in right direction for
2025, with fundamentals and stock price having bottomed  
    ** FedEx's shares up 10.9% YTD

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.Parmar@thomsonreuters.com;))