UPS delayed its earnings announcement until after the Teamster strike deadline. Today, the results are in and the takeaway is clear. Our strike threat, and the costly tentative agreement, have taken a bite out of UPS’s profits.
The company announced that second quarter revenue dropped by nearly $1.1 billion compared to last year. Profits were down by $842 million. (Source: MarketWatch)
UPS told investors that profits will remain down for the year, blaming the drop on “the volume impact from labor negotiations and the costs associated with the tentative agreement with the International Brotherhood of Teamsters.” (Source: UPS)
The new tentative agreement will put more money in Teamster members’ pockets than ever before and Wall Street is taking note.
Before the contract campaign, UPS told Wall Street to expect profits of $13 billion this year. After the tentative agreement, UPS is lowering expectations to around $10.9 billion.
"Investors will be pleased to see an agreement but the actual terms may come as a negative surprise," a Morgan Stanley analyst wrote. (Source: Investors Business Daily)
No one is crying for this company. UPS Teamsters produce the company’s profits and we will keep fighting for our fair share.