United Parcel Service (UPS) held an Investor Day conference on Tuesday as it looks to return to a growth trajectory and improve profitability. UPS CFO Brian Newman joins Yahoo Finance to discuss the company's financial projections.
Mr Newman expressed confidence in the postal carrier's “excellent plans” for the future and said the company had set a 5% revenue growth target. He also highlighted the potential for “inorganic M&A opportunities” that could help UPS reach its projected $114 billion in revenue. Neumann stressed that UPS has “proved” to be “cost-agile,” which he expects will help it achieve its 13% profit margin.
Regarding M&A opportunities, Newman clarified that these are not focused on a single large deal, but rather a “series of deals” targeting the healthcare and international sectors.
Mr. Newman emphasized that the collective bargaining agreement signed by UPS, which celebrates its first anniversary in August, will allow the company to reduce internal costs, which will help expand profit margins. He said the “good news” was that this would reduce labor inflation and “increase cash” as 46% of the contract value was realized in the first year.
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Editor's note: This article was written by angel smith
