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Yo bro, where’s the growth?
UPS is to invest in its US network, in what chief executive Scott Davies referred to as the year of the customer”. It will also expand sorting capacity and develop its technology. However, it was revealed in yesterday’s results, it is incurring greater expenses – in part for its 2014 peak season operations – and it has had to pay out for additional transportation this quarter. In Europe, it had to pay a premium for additional short-term capacity. While revenues for the second quarter rose 5.6% to $14.3bn, total operating expenses rose 14.9%. The best improvements were seen in its Supply Chain Group, especially freight forwarding.
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