UPS goes back to business in $20 billion automation push

The world’s biggest package delivery firm’s embrace of expensive “last-mile” home shipments of everything from clothes to car tires has squeezed margins as it competes with FedEx Corp (FDX.N), which takes fewer of those pricey deliveries. UPS shares fell 1.7 percent to $121.21 in midday trade after executives on Thursday boosted long-term earnings targets but stopped short of saying they would take fewer home deliveries. UPS is still more profitable than FedEx, but “FedEx may be better at saying ‘no’ to low-profit volume,” Morningstar analyst Keith Schoonmaker said. …read more

Source:: Yahoo Finance


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