UPS – big changes to network

David Abney, UPS Chairman and CEO has announced that UPS is planning a ‘sweeping transformation’ of its international network.

Abney made an investor call conference in New York City where he 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.”

The UPS CEO also said that the company also plans to expand its US delivery and pickup schedule to include six days for ground shipments. In addition UPS will offer Saturday delivery options to the largest metropolitan areas, and has started to roll this out across the United States.

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.

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