UPS offers positive growth outlook, despite lackluster economy

on Thursday, September 15, 2011

UPS offers positive growth outlook, despite lackluster economy Even as the economic climate has soured, many businesses have continued to report record profits. It may seem counter-intuitive, given depressed consumer spending levels and ostensibly tepid demand for a host of products, but businesses have worked with procurement consultants and other specialists as they endeavored to achieve business cost reductions and improve performance.

The United Parcel Service (UPS) has adeptly navigated a shaky economy, delivering fiscal results that have continually impressed investors. UPS chief executive Scott Davis affirmed this week the company is on pace this year to accrue record results, Reuters reports.

While industry analysts voiced concerns over the ability of companies such as UPS, FedEx and DHL to continue to drive profit and revenue gains amid diminished demand, UPS' annual performance thus far has put an end to such worries.

The world's biggest package delivery company has successfully expanded its worldwide operations. What's more, it has invested a substantial amount of money in healthcare logistics, a sector expected to drive future growth. UPS chief financial officer Kurt Kuehn said the U.S. economy will likely continue to experience slight growth, before ultimately rebounding.

"We do remain cautious on the U.S. economy, but our expectation is that we have another year, year and a half, of sub-par growth and then we'll return" to pre-recessionary levels, he asserted.

 

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