United Parcel Service CEO Carol Tomé reports second-quarter earnings that beat expectations while raising full-year guidance.
United Parcel Service CEO Carol Tomé reported that the company exceeded analyst expectations for the second quarter, reporting a net income of $604 million. Despite this success, shares of the delivery giant fell roughly 8% in early trading as the company projected flat domestic revenue for the third quarter. Tomé noted that the company has successfully completed its glide-down with Amazon, which removed approximately 2 million pieces of lower-quality volume and $4.5 billion in expenses. The company is currently executing a turnaround strategy focused on automation and healthcare logistics, with healthcare generating over $3 billion in revenue for two consecutive quarters. Tomé highlighted that the company is seeing momentum in the China to U.S. shipping lane, which returned to year-over-year growth in May. The company aims to achieve $3 billion in program benefits from its network reconfiguration by the year's end.