UPS looks to automation, higher prices to offset lower margins from e-commerce

Chicago

FACING lower margins from its rising e-commerce business, package delivery company United Parcel Service Inc said on Tuesday that it would bring forward investments in automation and technology and could raise prices to offset the reduced profits from delivering packages to consumers.

Atlanta-based UPS posted a quarterly loss on Tuesday caused by a pension charge and gave a full-year profit forecast below analysts' expectations, helping to push its shares down nearly 7 per cent.