UPS looking at 5%-7% revenue growth till 2019

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UPS freightAtlanta-based logistics solutions provider UPS intends to bolster its revenue by 5% to 7% on average each year between 2015 and 2019, as it disclosed its long-term growth strategies to achieve these financial targets.

The company announced its long-term expansion tactics and financial outlook central to its “Networked for Growth” theme during a recent investor conference in New York.

Its long-term plans for expanding revenue and profitability include putting heightened focus on industry verticals and international growth markets; providing customer solutions that leverage the global UPS network; efficient capital investment in technologies, capabilities, and footprint; and improving business-to-consumer (B2C) profitability.

Said UPS chief executive officer David Abney: “The needs of our customers continue to change, and we’re changing with them by offering new and innovative solutions.”

Long-term financial goals for 2015 to 2019 are revenue growth of 5% to 7% average annual rate and earnings per share up 9% to 13% per year.

Chief financial officer Kurt Kuehn provided the company’s 2015 outlook and long-term financial objectives, which include revenue growth of 5% to 6% higher than 2014, and earnings per share of up 10% to 15% to between US$5.45 and $5.70.

Kuehn also outlined plans for capital investments of 4.5% to 5% of revenue annually for 2015 to 2019. The company plans to invest about $2 billion over the next five years to expand its international infrastructure in Europe, Asia, and the Americas.

There are also plans to improve B2C profitability through optimized planning and data analysis and improve efficiency by “collaborating with shippers to optimize the timing of deliveries.”

At the conference, the company confirmed its outlook for 2014 for full-year earnings per share in the range of $4.90 to $5.

Photo: Frank Deanrdo