UPS Is Hampered by E-Commerce Conundrum as U.S. Profit Drops
- Region’s operating results fall even with 5% revenue surge
- CEO Abney says investments, higher prices to soon pay off
UPS CFO Expects Positive Leverage for Rest of Year
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American consumers’ love for online shopping is doing great things for United Parcel Service Inc.’s revenue. The catch is that the demand for now is outstripping the delivery company’s ability to control costs.
Sales in the U.S. package division jumped 5 percent in the first quarter, Atlanta-based UPS said in a statement Thursday. But every blender, book and bath towel takes fuel and a driver to reach someone’s front door, contributing to higher expenses that pared the unit’s operating profit by 2.4 percent.