UPS Chairman and CEO David Abney instructed CNBC on Thursday that he is not involved about Amazon's standing as each a buddy and foe of the logisti
UPS Chairman and CEO David Abney instructed CNBC on Thursday that he is not involved about Amazon’s standing as each a buddy and foe of the logistics large.
“We watch what they do,” Abney stated on “Squawk on the Street.” “They’re actually a buyer, however they could be a competitor in sure areas, and we monitor that.”
Large-time logistics firms akin to UPS are in a precarious state of affairs with Amazon because the e-commerce large builds out its personal supply enterprise.
Amazon represents about 12% of UPS’ revenues, in line with CNBC’s Frank Holland, and Abney famous the 2 firms’ relationship grew, on a proportion foundation, within the final 12 months.
Abney attributed the expansion to 3 issues: aggressive winds, structural change that Amazon and others instigated round next-day supply, and a muted worldwide provide chain on account of macro challenges akin to commerce tensions.
“We have got a mutually useful relationship,” Abney stated, suggesting the present relationship between the businesses would not be disrupted “so long as it stays mutually useful.”
Shares of UPS had been down greater than 5% on Thursday after the Atlanta-based company reported earnings.
UPS noticed quarterly revenue growth of 3.6%, however it was nonetheless barely beneath Wall Road estimates. UPS additionally issued a full-year earnings-per-share forecast beneath expectations.
In the future earlier, UPS introduced it placed an…