1. UPS expects tight earnings coverage for a 5.7% dividend in 2025. 2. UPS shares fell 14% after weak financial guidance for 2025. 3. UPS plans to reduce package volumes with Amazon by 50%. 4. Projected earnings could cover the dividend with a targeted payout ratio of 50%.
UPS's issues may hinder Amazon's logistics reliance, affecting its operational costs. Similar past events have resulted in negative impacts on Amazon’s logistics strategies.
The article highlights UPS's challenges, which can influence Amazon's logistics and overall cost structure.
Immediate impacts can arise as UPS adjusts operations in the coming year. Past reductions in service levels typically show quick market adjustments.