UPS's $7 Billion-a-Year Spending Spree Reaches a Moment of Truth
- Company set to offer shareholders details of investment return
- ‘They’re playing catch-up’ with rival FedEx, analyst says
Packages move along a conveyor belt at the United Parcel Service Inc. (UPS) Chicago Area Consolidation Hub.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
United Parcel Service Inc. is investing $7 billion this year to upgrade its delivery network for the rise of online shopping. Now it’s taking the stage to tell investors what they’re getting for that money.
“They’ve got to show the markets basically, ‘Hey, we’re spending this money, but here’s the return you’re going to get. So, trust us,’ ’’ said Kevin Sterling, an analyst at Seaport Global Holdings. The more details the courier provides in an investor meeting Thursday, the better, he said.