User-agent: Mediapartners-Google* Disallow: Trucks World News: III - COURIERS & RETAILERS' WAR * USA: UPS stock suffers biggest drop in 2 years

Feb 3, 2017

III - COURIERS & RETAILERS' WAR * USA: UPS stock suffers biggest drop in 2 years

* Georgia - As e-commerce surge is still causing problems

--- Profit and revenue miss expectations, as a bigger-than-expected surge in e-commerce sales came at a cost... Shares of United Parcel Service suffered Tuesday their biggest one-day selloff in two years, as disappointing fourth-quarter results suggest the package-delivery giant was still having trouble adapting to the surge in online holiday shopping... The results were also a stark reminder that not all business is good business... E-commerce business increased sharply during the peak holiday season, as many expected it would, but by a lot more than UPS had anticipated. Chief Financial Officer Richard Peretz said that the normal percentage of business-to-consumer (B2C) revenue to total revenue is 55%, and that spiked to 63% in December, marking the biggest swing in 10 years... While that might seem like a good problem to have, that B2C business is a lower-revenue, narrower-margin business, so it came at a cost to the company. Peretz said roughly two-thirds to three-quarters of the earnings miss was a result of this big change in product mix... Basically, UPS is still having issues adapting to the rapid ramp in its e-commerce business...
Sandy Springs, GA, USA - Marketwatch, by TOMI KILGORE - Feb 1, 2017

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