CLAIM #60336 · United Parcel Service Inc (UPS) · 2024Q3 earnings call · Oct 24, 2024 · due Dec 31, 2024
“we do expect about $70 million incremental to go about $350 million in the fourth quarter, and we've seen great progress with that program.”
Brian Dykes · CFO
In context
“t, but is that going to incrementally deliver more in the fourth quarter? Thank you. Carol Tome: So first on the customer glide down, we have, as you know, been in a glide-down arrangement with our largest customer and they continue to be our largest customer. I think it's fair to say that we have seen them drive a lot of the reduction in our air volume. In fact, if I look at the third quarter performance, 100% of the decline in air volume was down about 6.5% that is attributable to the largest customer. So they, like many, trading down from air to ground and in their case, a little bit of ground out to their own network. But we're fine with that because it creates opportunity for us to grow in other areas. And then looking ahead... Brian Dykes: And then on the Fit to Serve point, yes, so we do expect about $70 million incremental to go about $350 million in the fourth quarter, and we've seen great progress with that program. Brandon Oglenski: Thank you. Operator: Your next question comes from the line of Ken Hoexter from Bank of America. Please go ahead. Adam Rakowski: Hi, good morning. This is Adam Rakowski on for Ken Hoexter. You noted in the release that you are a - scope of the Fit to Serve initiative, which previously called for a reduction of about 12,000 positions. Could you just expand on what that means? Is there -- has that actually accelerated this quarter? And just any thoughts on how you would expand the scope and what you would target there? Thanks. Carol Tome: So you're just asking for a status update on Fit to Serve? Brian Dykes: Sure. Yes. On Fit to Serve, as we said, we have pulled forward incremental savings opportunities. We are -- we hit the full run rate that we expected. We will have so”
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SEC filings for UPS ↗ · Claim quote is verbatim from the 2024Q3 earnings call.