Business Briefs – July 24, 2019

Demand for Speedy Delivery Powers Ups 2Q

ATLANTA (AP) – The demand for next day delivery helped to fuel a profit jump of 13% at UPS during the second quarter. Both profits and revenues topped Wall Street expectations, sending shares up more than 8% Wednesday.

UPS earned $1.69 billion, boosted by a 30% increase in next-day air shipments. The Atlanta company’s revenue rose 3% to $18.05 billion.

Company executives said they are adding planes and building more capacity in their sorting centers to meet the demand.

UPS said this week that it will begin making deliveries seven days a week next year, after FedEx said it would do the same.

Ford 2Q Profit Falls 86% on Cost Of Overseas Restructuring

DEARBORN, Mich. (AP) – Ford’s net profit tumbled 86% in the second quarter due largely to restructuring costs in Europe and South America.

Net income for the April-through-June period dropped to $148 million, or 4 cents per share. Without the charges the company made 28 cents per share. Revenue was flat at $38.9 billion.

On average, analysts surveyed by FactSet expected earnings 31 cents per share on revenue of $38.49 billion.

Chief Financial Officer Tim Stone says the company had charges of $1.2 billion as it moved to close factories in Europe and South America.

He says Ford already is seeing an impact from its global fitness measures that included a reduction of 7,000 white-collar workers.

Insurers Offer Plan to Take Over Bankrupt PG&E After Fires

SAN FRANCISCO (AP) – Insurance companies contending that Pacific Gas & Electric owes them more than $20 billion from wildfire claims want to take over the California utility and pull it out of bankruptcy.

The insurers filed court documents to end PG&E’s exclusive right to file a reorganization plan. They want the right to submit their own plan to wildfire victims and other PG&E creditors.

Amazon Has ‘Destroyed’ U.S. Retail Industry, Mnuchin Says

WASHINGTON (Bloomberg News) – U.S. Treasury Secretary Steven Mnuchin alleged that Amazon.com Inc. has “limited competition” and harmed the retail industry as the Trump administration announced a broad antitrust review into whether technology companies are using their power to thwart rivals.

“If you look at Amazon, although there are certain benefits to it, it destroyed the retail industry across the United States, so there’s no question they’ve limited competition,” Mnuchin said in an interview with CNBC Wednesday.

The Justice Department’s antitrust division disclosed plans to scrutinize tech platforms following mounting criticism across Washington that the companies have become too big and too powerful. The department didn’t specify which firms it would look at but strongly suggested Facebook Inc., Alphabet Inc.’s Google and Amazon are in the cross-hairs.

Amazon holds less than 8% of the U.S. retail market.