UPS Sinks After Spending Plan Crimps 2020 Profit Forecast
- Amazon business rises to 11.6% of the courier’s revenue
- E-commerce surge requires speeding deliveries 7 days a week
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United Parcel Service Inc. fell as Chief Executive Officer David Abney said he would accelerate spending to speed deliveries and expand weekend service -- a strategy he sees as essential to the courier’s future even though it will squeeze profit this year.
In its push to capture more e-commerce business, UPS has grabbed more Amazon.com Inc. work after FedEx Corp. cut ties to the online retailer. But UPS’s investments in automation -- designed to cut costs in the long term -- are weighing on the 2020 outlook, which fell short of Wall Street’s expectations.