The world’s largest delivery company arrived roughed up on 2019’s doorstep. The 111-year-old Atlanta-based shipper’s share price crashed 30% from a record high of $134 in January of 2018 to a low of just under $90 in December. Chinese trade tariffs and tensions, a narrowly avoided worker strike in November, fears over competition from Amazon, and other disruptions caused tremendous stock volatility. Despite the slide, UPS’s annual revenue grew 9.1% to $71.9 billion as the company delivered 21 million packages per day (about a million more per day than the previous year). UPS has been undergoing a concerted transformation effort since 2017, doubling its capital expenditures to $6.3 billion in 2018 versus two years ago. The company’s reinvestments—which included opening 22 new, automation-friendly facilities last year with 18 more planned for this year—could pay off in the long term, but they’re eating into profits in the short-term.
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