UPS (UPS -6%) plans to make more than $12B in investments to expand its logistics network, increase pension funding and position the company to "further enhance shareowner value."
"This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act," says UPS CEO David Abney.
“Through our current and future actions, we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility," he adds.
UPS will invest an additional $7B over three years on facilities, new aircraft, new ground vehicles and IT platform improvements.
Shareholders looking for a higher dividend payout can take heart in Abney's confidence during the post-earnings conference call that the board will approve a hike in the near future.
Previously: Holiday surge comes at a cost for UPS (Feb. 1)
Source: Press Release
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