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5 Key Takeaways From United Parcel Service's Conference Call

Most investors in United Parcel Service already know about the company's difficulties in dealing with peak demand in the fourth quarter. UPS has now disappointed investors with holiday season operations for two consecutive years. In 2013, the company found itself with insufficient capacity to meet peak demand, then in 2014 it overcompensated and built out too much. This is clearly the issue analysts and investors are focusing on, so let's look at what management wants you to know about it.

Source: Morningstar research, author's analysis.

All told, UPS protected its brand in 2014, but it came at the cost of profitability. Going forward, the plan is to increase productivity and take measures to better manage the flow of shipping volumes around peak season. UPS' end demand remains strong, but investors will want to keep an eye on future margin and capital expenditure requirements.

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The article 5 Key Takeaways From United Parcel Service's Conference Call originally appeared on Fool.com.

Lee Samaha has no position in any stocks mentioned. (Author is aware that the brown UPS uniform is somewhat iconic, but still thinks it's horrible. )

The Motley Fool recommends United Parcel Service. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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