UPS CEO Sees Wider Profit Margins in 2021 After ‘Turning Point’

  • Fourth-quarter earnings, sales beat Wall Street expectations
  • Courier cuts 2021 investment to $4 billion, will repay debt
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United Parcel Service Inc.’s profit jumped in the fourth quarter as a rush of online holiday shopping boosted package volume and enabled the courier to raise its prices.

The results marked a “turning point” for UPS’s efforts to increase revenue faster than volume, Chief Executive Officer Carol Tome told analysts Tuesday after the company reportedBloomberg Terminal earnings. While UPS declined to venture a detailed financial forecast because of uncertainty from the coronavirus pandemic, profit margins will expand in 2021, Tome said.