UPS Tumbles as Doubts Multiply Over Package Shift to E-Commerce
- Less-profitable home deliveries surge as online retail expands
- Courier’s 2017 earnings forecast falls short of expectations
UPS Grapples With Stronger U.S. Dollar
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United Parcel Service Inc. plunged the most in two years as a rapid shift toward home deliveries exposed how much further the courier has to go to keep up with the shift to e-commerce.
The world’s largest package-delivery company committed to spending an extra $1 billion to automate warehouses and pay for other efforts to cope with increasing demand from internet shoppers. Stepped-up investment plans, along with expectations for a strong dollar, weighed on a 2017 profit forecast that fell short of analysts’ estimates.