CLAIM #60285 · United Parcel Service Inc (UPS) · 2024Q2 earnings call · Jul 23, 2024 · due Dec 31, 2024
“So we think that the prices are going to stick because of what the environment is telling us from a demand perspective.”
Carol Tome · CEO
In context
“ut was the shaping of Q3 to Q4. And in Q3 yes, we expect domestic package EBIT to be up in the 10% to 15% range. And then for the -- and then it will moderate a little bit. The growth will moderate a little bit in Q4 as the comp levels out. And Carol, do you want to --. Carol Tome: I'll be happy to talk about peak. So it is a condensed peak. It is the most condensed peak since 2019. There are only 17 days between Thanksgiving and Christmas. And as we look at the volume projections for peak, we’re expecting on our Peak day, which is December 18, has the highest volume ever in our network. Now when you have that kind of volume flowing to your network, you actually have to charge to service them well because you have to hire people and lease aircraft and delivery vehicles so on and so forth. So we think that the prices are going to stick because of what the environment is telling us from a demand perspective. I would also say candidly, they are up against very easy comparison last year. Because, as you recall, well we peaked, volume was declining in the network. So the year-over-year comparisons and the fact that this peak is tight gives us confidence. That being said we also have an opportunity to price -- moving from the art of pricing to the science of pricing through the new tools that we have been talking to you about. Pricing architecture of the future gives us the opportunity to use modifiers and price that creates opportunities for value for our customers, as well as value for ourselves. That plus deal manager, which has been a huge home run for us. We are winning more deals at less discounts than we have in the past. And Matt, maybe I'll turn it back over to you for a comment on price”
Verify independently
SEC filings for UPS ↗ · Claim quote is verbatim from the 2024Q2 earnings call.