UPS Sinks Most Since 2015 as Costs From E-Commerce Crimp Outlook
- CEO Carol Tome says pressure on U.S. results to ease next year
- Surging deliveries from online shopping spur rise in expenses
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United Parcel Service Inc.’s shares dropped the most since 2015 as investors looked past surging sales to focus on rising costs.
Profit margins will be pressured this quarter as the company accelerates investment to speed deliveries and absorbs increased expenses to handle peak-season volume, UPS said Wednesday as it reported third-quarter results. Benefits, incentive pay and other items will create an additional drag of $300 million or more.