UPS Reports "Significant" Drop in Volume
UPS last week reported “an unexpected, significant drop in U.S. domestic volume during the days between Christmas and New Year’s Day.
UPS last week reported “an unexpected, significant drop in U.S. domestic volume during the days between Christmas and New Year’s Day.”
The drop in volume was noted in an notice to the investment community lowering guidance for fourth quarter results.
The UPS press release said, “prior to that week, volume growth had been trending at 2.5% for the quarter. However, the impact of the last week resulted in a total U.S. domestic volume increase of 1.6% for the quarter. Domestic ground volume was up 1.5%, while Next Day Air growth strengthened, increasing 4.1%. The international export business continued its excellent performance, posting double-digit volume growth for the quarter.”
Despite the good news in the release, UPS stock fell from 83.60 Tuesday to 75.97 Friday, a decline of approximately 9%.
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