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UPS announced 12,000 job cuts and released its earnings forecast for this year, sending its stock price plummeting at the opening bell.
The company also indicated that Coyote’s truckload brokerage business could be put up for sale.
The Teamsters voted in September to approve a tentative contract agreement with UPS, finalizing contentious labor negotiations that threaten to disrupt package delivery to millions of businesses and households across the country. Ta.
On a conference call Tuesday morning, CEO Carol Thome said UPS could save $1 billion in costs by reducing the number of employees.
UPS also announced Tuesday that its board of directors approved a record 1 cent increase in its quarterly dividend to shareholders on February 20th.
“We’re going to align our organization with our strategy and align our resources on what’s really important,” Tomé said.
Tomé said UPS is ordering employees to return to the office five days a week this year.
United Parcel Service Inc. expects 2024 revenue to be in the range of about $92 billion to $94.5 billion, falling short of Wall Street’s forecast of more than $95.5 billion.
UPS stock fell nearly 9% on Tuesday.
Sales remained short in the fourth quarter, falling 7.8% to $24.92 billion. That’s slightly lower than Wall Street’s $25.31 billion estimate, according to a FactSet analyst survey.
Earnings for the quarter ended December fell by more than half, from $3.45 billion ($3.96 per share) to $1.61 billion ($1.87 per share). Adjusted quarterly earnings per share totaled $2.47, beating average estimates by a penny, according to FactSet.
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