Transportation
UPS Shares Plunge on Plan to Slash Amazon Business By Half
- Revenue expected to decline this year after stagnant 2024
- New deal slashes lower margin volumes with top client by 50%
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United Parcel Service Inc. shares plunged after the company projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year and prompting it to slash its low-margin business with Amazon.com Inc.
UPS’ core parcel operations have endured a prolonged demand trough as package volumes have fallen from pandemic-era peaks. Some customers also have traded down from premium to economy services, cutting into the Atlanta-based company’s earnings.