UPS Delivers Lower Profit Forecast After Holiday Rush

To make up for the holiday rush, UPS utilized 85,000 temporary employees, 30,000 more than planned.

Agence France-Presse

NEW YORK – UPS on Friday slashed its fourth-quarter profit forecast after the company hired 30,000 extra temporary employees due to an unexpected increase in holiday deliveries.

UPS expects to report earnings of $1.25 per share, below the $1.43 forecast by analysts. The company said full-year earnings will be $4.57 per share, below its previous forecast of $4.65 to $4.85.

“U.S. results were negatively impacted by the challenges of the compressed peak season coupled with an unprecedented level of online shopping that included a surge of last-minute orders,” the company said.

To make up for the holiday rush, UPS utilized 85,000 temporary employees, 30,000 more than planned.

UPS said it delivered 31 million packages on Dec. 23, the most ever and 13% more than the prior-year peak day.

UPS and rival FedEx came under fire on Christmas when consumers complained of delivery delays for packages that retailers had promised would reach their destination in time for the Dec. 25 holiday.

Copyright Agence France-Presse, 2014

See original post here: http://www.industryweek.com/logistics/ups-delivers-lower-profit-forecast-after-holiday-rush

This entry was posted in Emerging Trends, Freight & Transportation, Retail E-Commerce. Bookmark the permalink.

Comments are closed.