Latest news with #EfficiencyReimagined
Business Wire
29-07-2025
- Business
- Business Wire
UPS Releases 2Q 2025 Earnings
ATLANTA--(BUSINESS WIRE)--UPS (NYSE:UPS) today announced second-quarter 2025 consolidated revenues of $21.2 billion. Consolidated operating profit was $1.8 billion; $1.9 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.51 for the quarter; non-GAAP adjusted diluted earnings per share were $1.55. UPS announced second-quarter 2025 consolidated revenues of $21.2 billion. Share For the second quarter of 2025, GAAP results include a net charge of $29 million, or $0.04 per diluted share, comprised of after-tax transformation strategy costs of $57 million, partially offset by a $15 million gain from the divestiture of a business within Supply Chain Solutions and a $13 million benefit from the partial reversal of an income tax valuation allowance. 'I want to thank all UPSers for their dedication and hard work in what continues to be a dynamic and evolving trade environment,' said Carol Tomé, UPS chief executive officer. 'Our second quarter results reflect both the complexity of the landscape and the strength of our execution. We are making meaningful progress on our strategic initiatives, and we're confident these actions are positioning the company for stronger long-term financial performance and enhanced competitive advantage." U.S. Domestic Segment † 2Q 2025 Non-GAAP Adjusted 2Q 2025 2Q 2024 Non-GAAP Adjusted 2Q 2024 Revenue $14,083 M $14,201 M Operating profit $916 M $982 M $988 M $996 M Expand Revenue declined 0.8%, primarily driven by the expected decline in volume, partially offset by increases in air cargo and revenue per piece. Operating margin was 6.5%; non-GAAP adjusted operating margin was 7.0%. International Segment 2Q 2025 Non-GAAP Adjusted 2Q 2025 2Q 2024 Non-GAAP Adjusted 2Q 2024 Revenue $4,485 M $4,370 M Operating profit $672 M $682 M $718 M $824 M Expand Revenue increased 2.6%, driven by a 3.9% increase in average daily volume. Operating margin was 15.0%; non-GAAP adjusted operating margin was 15.2%. Supply Chain Solutions 1 † Revenue declined 18.3%, primarily due to the impact from the third quarter 2024 divestiture of Coyote. Operating margin was 8.8%; non-GAAP adjusted operating margin was 8.0%. 2025 Outlook Given the current macro-economic uncertainty, the company is not providing revenue or operating profit guidance, but confirms the following for the full year 2025: Capital expenditures of approximately $3.5 billion Dividend payments expected to be around $5.5 billion, subject to Board approval Effective tax rate of approximately 23.5% $1.4 billion in pension contributions (of which $921 million have been made) Share repurchases of around $1.0 billion, which have been completed $3.5 billion in expected expense reductions due to its network reconfiguration and Efficiency Reimagined initiatives * 'Non-GAAP Adjusted' or 'Non-GAAP Adj.' amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure. † Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers. Expand Conference Call Information UPS CEO Carol Tomé and CFO Brian Dykes will discuss second-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, July 29, 2025. That call will be open to others through a live Webcast. To access the call, go to the UPS Investor Relations page and click on 'Earnings Conference Call.' Additional financial information is included in the detailed financial schedules being posted on under 'Quarterly Earnings and Financials' and as furnished to the SEC as an exhibit to our Current Report on Form 8-K. About UPS UPS (NYSE: UPS) is one of the world's largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, 'Moving our world forward by delivering what matters,' the company's approximately 490,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at and Forward-Looking Statements This release, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission contain and in the future may contain 'forward-looking statements'. Statements other than those of current or historical fact, and all statements accompanied by terms such as 'will,' 'believe,' 'project,' 'expect,' 'estimate,' 'assume,' 'intend,' 'anticipate,' 'target,' 'plan,' and similar terms, are intended to be forward-looking statements. From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy and new or increased tariffs; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2024, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law. The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company's Investors Relations website at The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company's disclosure obligations under Regulation FD. Investors should monitor the Company's Investor Relations website in addition to following the Company's press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC. Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management. Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies. Forward-Looking Non-GAAP Adjusted Financial Measures From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period. Expense for Regulatory Matter We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of an expense to settle a regulatory matter. We do not believe this is a component of our ongoing operations and we do not expect this or similar payments to recur. One-Time Payment for International Regulatory Matter We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of a payment to settle a previously-disclosed international tax regulatory matter. We do not believe this payment was a component of our ongoing operations and we do not expect this or similar payments to recur. Transformation Strategy Costs We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of charges related to activities within our transformation strategy. Our transformation strategy activities have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio. Our transformation strategy includes initiatives within our Transformation 2.0, Fit to Serve, and Network Reconfiguration and Efficiency Reimagined programs. Various circumstances have precipitated these initiatives, including developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations. Our transformation strategy has included the following programs and initiatives: Transformation 2.0: We identified opportunities to reduce spans and layers of management, began a review of our business portfolio and identified opportunities to invest in certain technologies, including financial reporting and certain schedule, time and pay systems, to reduce global indirect operating costs, provide better visibility, and reduce reliance on legacy systems and coding languages. Costs associated with Transformation 2.0 have primarily consisted of compensation and benefit costs related to reductions in our workforce and fees paid to third-party consultants. We expect any remaining costs to be incurred during 2025. Fit to Serve: We undertook our Fit to Serve initiative with the intent to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction of approximately 14,000 positions, primarily within management. Fit to Serve is expected to conclude in 2025. Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic network. In connection with our anticipation of lower volumes from our largest customer, we began our Network Reconfiguration, which is an expansion of Network of the Future and will lead to consolidations of our facilities and workforce as well as an end-to-end process redesign. We launched our Efficiency Reimagined initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network reconfiguration. We expect to reduce our operational workforce by approximately 20,000 positions during 2025. We closed daily operations at 74 leased and owned buildings by June 30. We continue to review expected changes in volume in our integrated air and ground network to identify additional buildings for closure. We anticipate $3.5 billion of total cost savings will be achieved from Network Reconfiguration and Efficiency Reimagined in 2025. In connection with the Network Reconfiguration and Efficiency Reimagined programs described above, we expect to record between $400 and $650 million in non-GAAP adjusted expense during 2025, related primarily to third-party consulting fees, employee separation benefits, and certain programmatic expenses. We expect the costs associated with these actions may increase should we determine to close additional buildings. In addition, we believe that workforce reductions may require a remeasurement of defined benefit plan benefit obligations and assets during 2025. We are not yet able to estimate the timing or potential impact of such an event. We do not consider the related costs to be ordinary because each program involves separate and distinct activities that may span multiple periods and are not expected to drive incremental revenue, and because the scope of the programs exceeds that of routine, ongoing efforts to enhance profitability. These initiatives are in addition to ordinary, ongoing efforts to enhance business performance. Goodwill and Asset Impairments We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of goodwill and certain asset impairment charges, including impairments of long-lived assets and equity method investments. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards. Gains and Losses Related to Divestitures We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of gains (or losses) related to the divestiture of businesses. We do not consider these transactions to be a component of our ongoing operations, nor when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards. Reversal of Income Tax Valuation Allowance We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. We now expect a portion of these capital losses to be realized in future periods. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of subsequent changes in the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established. Non-GAAP Adjusted Cost per Piece We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece is calculated as non-GAAP adjusted operating expenses in a period divided by total volume for that period. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance. Free Cash Flow We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners. United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Three Months Ended June 30, (amounts in millions) 2025 2025 Net Income (GAAP) $ 1,283 Diluted Earnings Per Share (GAAP) $ 1.51 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (13 ) Business portfolio review (0.01 ) Financial systems 11 Financial systems 0.01 Transformation 2.0 total (2 ) Transformation 2.0 total — Fit to Serve 7 Fit to Serve 0.01 Network Reconfiguration and Efficiency Reimagined 52 Network Reconfiguration and Efficiency Reimagined 0.07 Total Transformation Strategy Costs 57 Total Transformation Strategy Costs 0.08 Gain on Divestiture (1) (15 ) Gain on Divestiture (1) (0.02 ) (1) Reflects pre-tax gain of $20 million and related tax effect on the divestiture of a business within Supply Chain Solutions. (2) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Three Months Ended June 30, (amounts in millions) 2024 2024 Operating Profit (GAAP) $ 1,944 Diluted Earnings Per Share (GAAP) $ 1.65 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (10 ) Business portfolio review (0.01 ) Financial systems 13 Financial systems 0.01 Transformation 2.0 total 3 Transformation 2.0 total — Fit to Serve 24 Fit to Serve 0.02 Total Transformation Strategy Costs 27 Total Transformation Strategy Costs 0.02 One-Time Payment for Int'l Regulatory Matter (1) 88 One-Time Payment for Int'l Regulatory Matter (1) 0.11 (1) Reflects a one-time payment for an international regulatory matter of $88 million and related interest of $6 million. (2) Reflects expense related to the settlement of a regulatory matter. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 2025 Operating Profit (GAAP) $ 3,488 Operating Margin (GAAP) 8.2 % Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (18 ) Business portfolio review (0.1 )% Financial systems 31 Financial systems 0.1 % Transformation 2.0 total 13 Transformation 2.0 total — % Fit to Serve 28 Fit to Serve 0.1 % Network Redesign and Efficiency Reimagined 91 Network Redesign and Efficiency Reimagined 0.2 % Total Transformation Strategy Costs 132 Total Transformation Strategy Costs 0.3 % Gain on Divestiture (1) (20 ) Gain on Divestiture (1) (0.1 )% Goodwill and Asset Impairment Charges (2) 39 Goodwill and Asset Impairment Charges (2) 0.1 % Non-GAAP Adjusted Operating Profit $ 3,639 Non-GAAP Adjusted Operating Margin 8.5 % (amounts in millions) 2025 Other Income (Expense) (GAAP) $ (303 ) Goodwill and Asset Impairment Charges (2) 19 Non-GAAP Adjusted Other Income (Expense) $ (284 ) (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 Income Tax Expense (GAAP) $ 715 Transformation Strategy Costs: Transformation 2.0 Business portfolio review (5 ) Financial systems 8 Transformation 2.0 total 3 Fit to Serve 6 Network Redesign and Efficiency Reimagined 22 Total Transformation Strategy Costs 31 Gain on Divestiture (1) (5 ) Goodwill and Asset Impairment Charges (2) 9 Reversal of Income Tax Valuation Allowance (3) 23 Non-GAAP Adjusted Income Tax Expense $ 773 (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. (3) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 2025 Net Income (GAAP) $ 2,470 Diluted Earnings Per Share (GAAP) $ 2.91 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (13 ) Business portfolio review (0.02 ) Financial systems 23 Financial systems 0.03 Transformation 2.0 total 10 Transformation 2.0 total 0.01 Fit to Serve 22 Fit to Serve 0.03 Network Redesign and Efficiency Reimagined 69 Network Redesign and Efficiency Reimagined 0.08 Total Transformation Strategy Costs 101 Total Transformation Strategy Costs 0.12 Gain on Divestiture (1) (15 ) Gain on Divestiture (1) (0.02 ) Goodwill and Asset Impairment Charges (2) 49 Goodwill and Asset Impairment Charges (2) 0.06 Reversal of Income Tax Valuation Allowance (3) (23 ) Reversal of Income Tax Valuation Allowance (3) (0.03 ) (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. (3) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment (unaudited) Six Months Ended June 30 2025 2024 2025 2024 2025 2024 Adjusted for: Goodwill and Asset Impairment Charges — (5 ) — 5 — % — % Adjusted for: Transformation Strategy Costs (23 ) (42 ) 23 42 0.3 % 0.6 % Goodwill and Asset Impairment Charges — (2 ) — 2 — % — % One-Time Int'l Regulatory Matter — (88 ) — 88 — % 1.0 % GAAP $ 5,086 $ 6,069 (16.2 )% $ 280 $ 362 (22.7 )% 5.2 % 5.6 % Adjusted for: Transformation Strategy Costs (11 ) (14 ) 11 14 0.2 % 0.2 % Gain on Divestiture 20 — (20 ) — (0.4 )% — % Goodwill and Asset Impairment Charges (39 ) (41 ) 39 41 0.8 % 0.7 % Expense for Regulatory Matter — (45 ) — 45 — % 0.7 % Non-GAAP Adjusted Measure $ 5,056 $ 5,969 (15.3 )% $ 310 $ 462 (32.9 )% 5.8 % 7.2 % Expand United Parcel Service, Inc. Reconciliation of Free Cash Flow (Non-GAAP measure) (unaudited): Six Months Ended June 30, (amounts in millions) 2025 Cash flows from operating activities $ 2,666 Capital expenditures (1,999 ) Proceeds from disposals of property, plant and equipment 91 Other investing activities (16 ) Free Cash Flow (Non-GAAP measure) $ 742 Expand
Yahoo
19-05-2025
- Business
- Yahoo
Stord acquires UPS specialty warehouse business for e-commerce logistics
Omnichannel fulfillment provider Stord has acquired Ware2Go, an on-demand warehousing and fulfillment network, from UPS, the companies announced on Monday. The deal gives the Atlanta-based startup an additional 21 e-commerce warehouses, with a total capacity of 2.5 million square feet of storage space, allowing it to expand much more quickly into new markets to meet growing demand from e-commerce brands. Stord has an extensive network of fulfillment centers concentrated in 11 major metropolitan areas. Stord, founded in 2015, serves as a one-stop shop for e-tailers, managing more than $6 billion of transactions from customers' online checkout to last-mile delivery and inventory management with a suite of warehouse management, order management and parcel transportation software. The Ware2Go acquisition follows the acquisition in recent years of Fulfillment Works, ProPack and Pitney Bowes E-commerce. Last week, Stord announced it has raised more than $200 million in Series E funding from several banks and venture funds, which valued the company at $1.5 billion.'We are in a unique period for e-commerce and retail as brands struggle to manage through shifting global trade policies. Even with macro uncertainty, e-commerce end consumers still expect rapid delivery, perfect order accuracy, easy returns, and more,' said Sean Henry, CEO and co-founder of Stord. 'This acquisition of Ware2Go is a strategic investment that expands our U.S. domestic footprint and capabilities while strengthening our partnership with UPS. This partnership will allow us to deploy our technology across the Ware2Go network, enhance offerings for our joint customers, and combine our scale to be one of the largest fulfillment networks in North America.' UPS (NYSE: UPS) launched Ware2Go in mid-2018 as a platform that matches a diverse range of smaller B2B and B2C e-merchants with available warehouse space. The business aimed at positioning inventory as close to end-users as possible so they can meet guaranteed one-to-two-day deliveries. Through its technology, Ware2Go identifies warehouse capacity that is close to merchants' end customers and vets warehouse operators. The network can scale quickly to meet a merchant's expansion needs. Service offerings include direct-to-consumer shipping, seller fulfillment for sales on Amazon Prime and retail-compliant B2B shipments. UPS, which is in the midst of major network consolidation and cost-reduction initiatives, said the sale of Ware2Go will allow the company to concentrate on its primary express parcel delivery and supply chain management businesses. 'Along with initiatives such as Efficiency Reimagined and the optimization of our U.S. Network, UPS continues to look at ways to provide the most value to customers. The strategic decision to sell Ware2Go allows us to put even greater focus on our core business. We are being selective in the markets we want to serve and intend to serve them better than anyone else,' said Brian Hughes, director of financial and strategy communications, in an email response. 'We look forward to strengthening our relationship with Stord and providing their customers access to UPS's end-to-end services and broad product portfolio.'Stord says it enabled nearly 1% of all Black Friday and Cyber Monday online sales in the United States and achieved record profitability last year. Customers include shower filter-maker Jolie, nonalcoholic beverage retailer and wholesaler The Zero Proof, oral wellness company Quip, and sunglass retailer Goodr. Terms of the deal were not disclosed. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. UPS to eliminate 20K jobs as Amazon decoupling accelerates DHL cuts ties with cargo airlines as efficiency initiative ramps up The post Stord acquires UPS specialty warehouse business for e-commerce logistics appeared first on FreightWaves.
Tahawul Tech
10-04-2025
- Business
- Tahawul Tech
NTT DATA selected by UPS for digital transformation and modernisation
NTT DATA, a leading global business and technology services company, and UPS, the world's largest package delivery company, have announced a 10-year strategic collaboration. This long-term agreement will help UPS continue to modernize its IT infrastructure and data centres while providing AI and cloud services to drive business innovation. NTT DATA will also continue to help support UPS in the fast-paced world of logistics and delivery. 'We are honoured to be selected by UPS as a strategic partner on their transformation journey as they operationalise their 'data centre of the future' vision, deliver the next generation IT infrastructure and accelerate digital product development', said Abhijit Dubey, President & CEO, NTT DATA, Inc. 'As the third largest data centre provider in the world, and the only one to offer full-stack transformation services, NTT DATA is well-positioned to help UPS reduce operational costs and risks, drive innovation and revenue growth and maintain market leadership. This collaboration is a testament to our commitment to helping clients swiftly keep pace with the markets and prepare for the future'. Ken Finnerty, Senior Vice President, Global Information Technology, UPS said, 'NTT DATA will bring world-class data centre and infrastructure services to UPS. This arrangement allows the UPS technology teams, under our 'Efficiency Reimagined' initiatives, to focus their expertise on the development of digital solutions to solve customers' supply chain needs'. Highlights of the agreement: NTT DATA will purchase and operate one of UPS's mission-critical data centres and enable the collocation of IT workloads in-place. This includes using the best mix of public cloud and on-premises solutions to enhance efficiency and flexibility. NTT DATA will also help develop new solutions. These changes will support UPS's plans to reallocate savings toward innovative projects designed to drive growth initiatives, including developing new digital-centric services for their customers. NTT DATA provides true end-to-end services seamlessly integrating IT services, data centre operations and digital transformation solutions. From designing and constructing state-of-the-art data centres to managing and optimising IT systems, NTT DATA provides a comprehensive suite of services that address every technological need. This holistic approach ensures that clients can focus on innovation and growth while NTT DATA handles complex technology transformation. To find out more about NTT DATA's Digital Transformation Services, visit: Image Credit: NTT DATA
Yahoo
05-04-2025
- Business
- Yahoo
United Parcel Service (NYSE:UPS) Launches Global Checkout Service Amid 11% Weekly Price Decline
United Parcel Service recently launched UPS Global Checkout, a service facilitating international commerce by ensuring transparent costs, and faced investor activism with upcoming shareholder proposals at their May 8 meeting. Despite these developments, UPS shares declined 11% last week amid a broader market turmoil linked to President Trump's tariff announcement. The Dow and S&P 500 fell sharply with drops of 8% and 9%, respectively, highlighting significant economic concerns. As a result, UPS shares fell amidst a wider investor flight from equities, underscoring market sensitivity to geopolitical events impacting corporate profits and global trade dynamics. You should learn about the 2 risks we've spotted with United Parcel Service. Rare earth metals are the new gold rush. Find out which 19 stocks are leading the charge. The last five years have seen United Parcel Service (UPS) achieve a total shareholder return of 18.18%. This growth reflects several strategic initiatives that have impacted its performance amidst varying market conditions. In particular, UPS's "Efficiency Reimagined" initiative, which targeted $1 billion in savings, likely contributed to enhancing operational efficiency. The firm's move toward automation in its logistics operations is another key driver aiming to streamline processes and potentially improve revenue. However, risks include the company's dwindling reliance on major clients, such as Amazon, which could alter revenue streams, and previous labor disputes which might affect future margins. Over the past year, UPS underperformed the US Logistics industry, which declined by 24%, indicating challenges in the broader sector. Moreover, UPS's 2024 earnings announcements revealed increased revenue, with Q4 net income rising to $1.72 billion, highlighting potential upside amid market headwinds. These financial maneuvers and adaptations helped shape the company's shareholder returns, despite recent market volatility impacting short-term share price movements. Jump into the full analysis health report here for a deeper understanding of United Parcel Service. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:UPS. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
30-01-2025
- Business
- Yahoo
UPS Reports Q4 Earnings Beat, Plans Cost-Cutting Amid Amazon Volume Decline
United Parcel Service (UPS, Financials) reported fourth-quarter earnings that exceeded analyst expectations, driven by revenue growth and operational improvements. The corporation is emphasizing operational efficiency in 2025 and higher-margin business divisions while lowering costs to counter a projected drop in Amazon shipment volume. In the fourth quarter, UPS brought in $25.3 billion, a 1.5% rise over last year. Operating profit increased 11.2% to $3.1 billion; adjusted profits per share came in at $2.75, above consensus projections of $2.53. From operations, the corporation brought in $10.1 billion in cash; via buybacks and dividends, it returned $5.9 billion to investors. With revenue per package rising 2.4%, U.S. domestic operations brought in 2.2% to $17.3 billion. Supported by an 11.7% rise in export volume, international income rose 6.9% to $4.9 billion. While air and ocean freight forwarding grew by 10.3%, supply chain income dropped with Coyote Logistics's sale. Targeting $1 billion in cost cuts, UPS is implementing its "Efficiency Reimagined" program. The strategy calls for operational tweaks and network improvement to offset a projected Amazon drop in package volume. To concentrate on small and medium-sized companies, healthcare logistics, and international shipping, the corporation promised to cut Amazon-related shipments by over 50% by the second half of 2026. As of Jan. 1, 2025, it also took complete management of SurePost delivery from the U.S. Postal Service; but there is no predicted major financial consequence from this shift. UPS projects an operating profit of 10.8% and a sales goal of $89 billion for 2025. Though volume is expected to decline, U.S. domestic business is expected to witness a 6% increase in revenue per package. With an operating margin of 18.6%, the foreign division is likely to see mid-single-digit volume increase. Forecasted at $11 billion with an 8.5% margin is supply chain income. Every quarter UPS anticipates domestic margins to rise; by year-end they will have reached 8.8%. Although analysts pointed highlighted UPS's emphasis on profit growth and cost control, they expressed worries on the effect of dropping Amazon business. With an eye on small enterprises and healthcare logistics, CEO Carol Tome said the firm is giving profitable, agile growth top priority. With 11.8% of UPS income coming from Amazon shipments in 2024, the volume loss poses a major concern. Analyzers also mentioned competition pressures from FedEx (FDX, Financials) and the U.S. Postal Service, which may affect price. Maintaining profitability of the firm depends on the effectiveness of its cost-cutting plan. UPS is turning its attention to maximize income sources and improve operational effectiveness. Although fourth-quarter numbers were good, the company's financial success in 2025 would depend critically on its capacity to control decreasing Amazon volumes and carry out cost cuts. This article first appeared on GuruFocus. Sign in to access your portfolio
