UPS announces “sweeping transformation of network”
UPS chairman and CEO David Abney has announced that the company is planning a “sweeping transformation” of its network. In an investor call conference in New York City, UPS executives said that future plans include:
- Accelerating investment in its next-generation “Smart Logistics Network”
- Leveraging the capital efficiency of the company’s global business model
- Capturing market growth for on-line B-to-B and B-to-C customers
- Investing aggressively in automation to drive improved performance
- Providing customers with innovative solutions that drive their future growth
- Deepening and widening capabilities in developed and emerging markets
- Delivering long-term UPS shareowner value.
“Over the next several years, you will see the most sweeping transformation of our network in its history,” said Abney. “We are adding more flexible capacity, more technology, more capabilities and becoming more efficient, ultimately to improve customer and shareowner value.”
Abney also said that UPS plans to expand its US delivery and pickup schedule to include six days for ground shipments.
UPS will offer Saturday delivery options to the largest metropolitan areas and has started rollout throughout the US.
Chief Financial Officer Richard Peretz outlined the company’s financial targets for 2018 and 2019, which included:
- Revenue growth 4% to 6% over the period
- Adjusted diluted earnings per share up 5% to 10%
- Planning $1 billion to $1.8 billion in annual share repurchases.
Presentation materials from the conference, which was publicly available through a live webcast, and the webcast replay are available on the UPS Investor Relations website.
