Crazy Flux
  • Business
  • World
  • Stocks
  • Investing
  • Business
  • World
  • Stocks
  • Investing

Crazy Flux

Business

UPS shares tank 15% after weak guidance, plan to slash Amazon deliveries by more than half

by admin February 3, 2025
February 3, 2025
UPS shares tank 15% after weak guidance, plan to slash Amazon deliveries by more than half

Shares of United Parcel Service plunged more than 15% Thursday after the company issued weak revenue guidance for the year and said it planned to cut deliveries for Amazon, its largest customer, by more than half.

The shipping giant said in its fourth-quarter earnings report that it “reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026.”

At the same time, UPS said it is reconfiguring its U.S. network and launching multiyear efficiency initiatives that it expects will result in savings of approximately $1 billion.

UPS CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer, but it is not the company’s most profitable customer. “Its margin is very dilutive to the U.S. domestic business,” she added.

“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to become a more profitable, agile and differentiated UPS that is growing in the best parts of the market,” Tome said in a statement.

Amazon spokesperson Kelly Nantel told CNBC in a statement that UPS had requested a reduction in volume “due to their operational needs.”

“We certainly respect their decision,” Nantel said in a statement. “We’ll continue to partner with them and many other carriers to serve our customers.”

Amazon said before the UPS announcement that it had offered to increase UPS’ volumes.

UPS forecast 2025 revenue of $89 billion, down from revenue of $91.1 billion in 2024. That is well below consensus estimates for 2025 revenue of $94.88 billion, according to analysts polled by LSEG.

For the fourth quarter, UPS missed on revenue, reporting $25.30 billion versus $25.42 billion analysts anticipated in a survey by LSEG.

Amazon has long relied on a mix of major carriers for deliveries, including UPS, FedEx and the U.S. Postal Service. But it has decreased the number of packages sent through UPS and other carriers in recent years as it looks to have more control over deliveries.

Amazon has rapidly built up its own logistics empire since a 2013 holiday fiasco left its packages stranded in the hands of outside carriers. The company now oversees thousands of last-mile delivery companies that deliver packages exclusively for Amazon, as well as a budding in-house network of planes, trucks and ships. By some estimates, Amazon’s in-house logistics operations have grown to rival or exceed the size of major carriers.

UPS has, for its part, taken more aggressive cost-control measures, including catering to more profitable delivery customers. On the investor call, Tome highlighted health care; small business; international; and business-to-business, or B2B, as “the best parts of the market” that it has leaned into more heavily. In recent quarters, UPS has benefited from an influx of volume from bargain retailers Temu and Shein, which have rapidly gained popularity in the U.S.

Last January, UPS laid off 12,000 employees as part of a bid to realize $1 billion in cost savings.

This post appeared first on NBC NEWS

next post
Super Bowl ads beckon up to $8 million apiece for Fox

Related Posts

Boeing would avoid guilty plea, prosecution over 737...

May 18, 2025

FCC is investigating Disney and ABC for DEI...

March 29, 2025

McDonald’s Snack Wrap is officially making a permanent...

June 5, 2025

Consumers are not lovin’ it: McDonald’s has its...

May 2, 2025

How crazy popcorn buckets became big business for...

February 20, 2025

Armenian organized crime rings charged with stealing $83...

May 23, 2025

Why Chappell Roan and other artists find themselves...

February 9, 2025

Nvidia to report earnings amid infrastructure spending, DeepSeek...

February 27, 2025

5 new Uber features you should know —...

May 16, 2025

E.l.f. Beauty to acquire Hailey Bieber skin care...

May 30, 2025

    Join our mailing list to get access to special deals, promotions, and insider information. Your exclusive benefits await! Enjoy personalized recommendations, first dibs on sales, and members-only content that makes you feel like a true VIP. Sign up now and start saving!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Elephant kills two female tourists from the UK and New Zealand in Zambian national park

      July 5, 2025
    • What is happening in South Korea? Seoul has caught the lovebug that nobody wants

      July 5, 2025
    • China tells EU it can’t accept Russia losing its war against Ukraine, official says

      July 5, 2025
    • Trump expects Hamas response to ceasefire in hours as new details emerge on proposal

      July 5, 2025
    • Hamas submits ‘positive response’ to ceasefire proposal in major step toward a deal

      July 5, 2025
    • ‘We want an answer’: They fear their relatives are among the hundreds of bodies piled up at a crematorium in Mexico

      July 5, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: crazyflux.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 crazyflux.com | All Rights Reserved