UPS Falls Most in Two Months as Volume Drop Damps Sales

[Purveyor]

By Michael Sasso
October 27, 2015 — 7:52 AM EDT
Updated on October 27, 2015 — 10:05 AM EDT

United Parcel Service Inc. dropped the most in two months after third-quarter sales missed analysts’ estimates amid a decline in U.S. ground shipments.

Average daily package volumes fell 0.8 percent, UPS said Tuesday, citing slowing industrial production that weighed on business-to-business deliveries. Revenue was also hurt by lower fuel surcharges and the impact of foreign currency, UPS said.

“We have seen some softness in the U.S. economy,” Chief Executive Officer David Abney said on a conference call. While shipments between businesses have “faded a little bit,” those to consumers have increased, he said. “But there is definitely softness in the manufacturing sectors.”

UPS’s results and a separate forecast for holiday deliveries painted a mixed economic picture for the world’s largest package-delivery company. While feeling the drag from a drop in U.S. factory output in August and September, UPS predicted a 10 percent increase in holiday-season shipments, to 630 million.

more...

http://www.bloomberg.com/news/articles/2015-10-27/ups-profit-beats-estimates-as-pricing-shift-boosts-u-s-sales

[IVoteDFL]

1. I work at FedEx and we have more volume than ever

UPS is doing something wrong.

[GreatGazoo]

2. they just sent out notices that they are increasing rates again

4.7% at the end of the year I think.

I used FedEx Ground when I lived in NYC but upstate it is harder as the local drop point is 20 miles away

[edhopper]

3. What about all the reports

how online sales are exploding and delivery services can't keep up with the volume?

Something doesn't add up.

Excuse for raising rates and decreasing wages perhaps?

[Dale Scott]

5. FTA: While shipments between businesses have “faded a little bit,

” those to consumers have increased"

That would seem to be your answer right there.

[Wellstone ruled]

4. Got to love these so called Bloomberg News Articles.

UPS is not going anywhere. Sasso just wrote a hit piece,read the damn thing,B.toB. always drops in September and that is usually office supplies and printed add materials. Been following this guy for some time,and he loves to do miss leading stories. Did you notice the big sell off in the ETF's no,well that is what is effecting transportation and auto stocks. And Crude Oil is still tanking and the Big Moenied Guys are shorting the autos and transports to pick up their slack. BTW,if it wasn't for the Post Office,you folks at Fed Ex would be in deep doo doo.

Factory out put drops in Aug and Sept,well yes,it is turn around season,enough of the false narritives okay.

[Brickbat]

7. +

[msongs]

6. maybe its the gouging fees for shipping or does UPS give kickbacks to shippers for high fees nt