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UPS Raises Outlook; Iran Attacks U.S. Forces, Rejects Hormuz Proposal; Costs Weigh on Boeing By Mark R. Long | WSJ Logistics Report
United Parcel Service said its yearslong restructuring is bearing fruit, lifting its outlook for the year
after revenue climbed in the second quarter. Profit fell sharply, however, hurt by a large after-tax charge tied to the company's workforce-reduction initiatives, as well as higher fuel costs stemming from the Iran war.
The Atlanta-based logistics giant raised its full-year revenue outlook to about $91.2 billion, up from about $89.7 billion and ahead of Wall Street forecasts, The Wall Street Journal's Connor Hart reports. UPS said it has slashed billions of dollars of costs, in part by phasing out roughly half of its lower-margin Amazon volumes and focusing instead on higher-margin shipments. It has also cut tens of thousands of delivery-driver and warehouse-worker roles.
UPS said it would focus on growing premium volumes, pivoting its core network strategy toward small and midsize businesses, as well as healthcare and B2B customers. The company also plans to continue investing in radio frequency identification, or RFID, technology, which it is embedding into shipping labels and installing on delivery trucks.
Ford Motor lifted its outlook on a forecast for slightly higher prices
this year, as the automaker posted a wider quarterly loss and lower revenue because of discontinued products, constraints on aluminum supply and lower EV volumes. (Dow Jones Newswires) Corning issued disappointing sales guidance , overshadowing a strong second quarter, as growth is squeezed by output limits on its AI connectivity products and broader drags in consumer electronics. (WSJ) CMA CGM said higher volumes and sustained freight rates offset costs generated by the Iran war , lifting the French container carrier's second-quarter revenue by 19.2%, though significant uncertainties persist. CONTENT FROM: PENSKE Gain a Closer Look. Gain Ground with Penske Logistics.
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Maritime Security
Iran launched a surprise ballistic-missile attack on American forces in Jordan, a U.S. official said. The missiles were all intercepted, but the assault puts new pressure
on President Trump to renew the war in earnest, the Journal reports.
Trump had paused almost two weeks of airstrikes on Friday to give peace talks a chance. On Tuesday, Iran said it had rejected an Omani plan for resuming traffic
in the Strait of Hormuz, pushing its own proposal that would give Tehran more control over shipping in the strategic waterway.
Oman suggested a temporary plan to establish even lanes of control, the Journal's Benoit Faucon and Summer Said report. But Tehran demanded that it take the lion's share of the waterway critical to the flow of the world's oil supply, one of its top diplomats said.
China continues to get oil from the Middle East despite wartime disruptions at two shipping chokepoints that are sending shockwaves through global markets. (WSJ) Aerospace
Boeing said fast-tracking work on the modified 747-8 jets that will someday serve as Air Force One will cost an additional $280 million, the latest in a series of cost overruns on the more than $4 billion project.
The WSJ's Drew Fitzgerald writes that pouring more resources into the new presidential jets and accelerating production of commercial planes kept the aerospace company in the red
for another quarter. Boeing's commercial airplane division posted a quarterly operating loss, albeit a smaller one than in the same quarter last year. The business absorbed costs from ramping up its manufacturing operations in a bid to chip away at its multibillion-dollar backlog of undelivered planes.
The company earlier this month opened a new production line in Everett, Wash., meant to boost production of its workhorse 737 MAX jets. Boeing is now aiming to make 47 of the narrow-body planes each month, up from 42 earlier this year.
The Federal Aviation Administration is asking airlines to inspect hundreds of Boeing 737 MAX jets for improperly installed cabin seats
that could prove dangerous in an emergency landing or severe turbulence. (WSJ) France's Safran raised its full-year guidance , citing stronger-than-expected demand for LEAP civil aircraft engines and spare parts. (WSJ) Number of the Day In Other News Consumers' assessment of business and labor-market conditions softened for a third straight month , with the Conference Board's consumer confidence index falling to 90.8 in July from an upwardly revised 92.2 in June. (WSJ) China-founded Shein Group said the Federal Trade Commission is investigating its U.S. operations . (WSJ) ASM International expects sales next year to grow more than previously thought as the race to build AI infrastructure and new devices coming to market fuel demand for chips and tools
to make them. (WSJ) Sherwin-Williams raised its outlook
for the year after logging higher profit and sales in the second quarter, as the paint maker scooped up market share and raised prices. (WSJ) Typhoon Noul shut terminals and depots
in Hong Kong and Shenzhen in southern China last weekend, adding to disruptions and delays two weeks after another storm led to port closures. (Journal of Commerce) The Federal Communications Commission moved to ban imports of foreign-made humanoid and quadruped robots , as well as power inverters used to link renewable energy sources to the grid. (Reuters) DHL Group agreed to acquire
Baltic region express-delivery company Venipak Group. (Air Cargo News) About Us
Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .
This article is a text version of a Wall Street Journal newsletter published earlier today.
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