UPS reduces Amazon volume by 50 % to promote profitability
UPS said that this will reduce Amazon's processing volume to 50 % in the second half of 2026, which is part of increasing the profitability of parcel operators.
The news was announced during the company's fourth quarter income release and called analysts with analysts before the market was open on Thursday.
E -commerce giant Amazon's UPS accounted for 11.8 % of the revenue in 2024, but “looking forward to the future, if we do not take any action, we will project this business, which will bring a reduced return.” Caroltomé is on the phone call with analysts. explain. “Amazon is our biggest customer, but it is not our most favorable customer.”
After the announcement of Amazon, UPS stocks fell as much as 15 % at noon.
UPS (NYSE: UPS) also announced a plan called “Efficiency Re -conceive”, which aims to reduce expenditure by $ 1 billion and will include labor reduction and closing its logistics network in the next few quarters. Many of the facilities.
The company's revenue reported in the fourth quarter was $ 25.3 billion, an increase of 1.6 % compared with the previous year.
The revenue per share in this quarter was $ 2.75, an increase of 11.3 % over the fourth quarter of 2023.
UPS missed the revenue of Wall Street at $ 25.419, but it was $ 2.53 than EPS.
In the fourth quarter of the company's domestic field, revenue increased by 2.2 % year -on -year to $ 17.3 billion, reflecting 2.4 % of each income and an increase in air cargo volume.
UPS's quarterly revenue increased by 6.9 % year -on -year to $ 4.9 billion, reflecting the average daily increase of 8.8 %.
CFO Brian Dykes said: “Compared with last year, the average daily daily number of international and domestic increases increased by 5.8 %, which is a strong promotion of Canada.” The average daily sales of exports of Asia increased by 15.4 % year -on -year, which increased in the third quarter.
Dax said that in the fourth quarter of Mexico and Germany, 17 of the top 20 exported countries in UPS increased the average daily export daily.
“In our largest export market in the fourth quarter of last year, the average daily number increased by 8.6 % compared to the fourth quarter of last year.”
In the fourth quarter of the supply chain solution department, revenue decreased by 9.1 % year -on -year to $ 3 billion.
In 2025, UPS is expected to have a total revenue of US $ 89 billion, a decrease of about 2.3 % over 2024.
The company's planned capital expenditure was about 3.5 billion US dollars, and the dividend payment was about $ 5.5 billion. It was approved by the board of directors. The stock repurchase was about $ 1 billion. The valid tax rate is expected to be about 23.5 %.