Shares of United Parcel Service Inc. UPS, +0.67% slipped 0.2% in premarket trade Thursday, after the package delivery service unveiled transformation initiatives, including revenue quality improvements and cost cutting moves, that it expects will boost adjusted earnings per share by $1.00 to $1.20 by 2020. The initiatives will include opening seven new "super hub" automated sortation facilities and more than 70 expansion projects, with an aim of adding 350,000 to 400,000 pieces per hour of sortation capacity in the U.S. each year through 2020. The company plans a continued expansion in international markets, further growth of its healthcare and life sciences logistics businesses and enhancing services for small- and medium-sized businesses. The U.S. business will receive about two-thirds of the benefits of the transformation plan. The stock has gained 3.5% year to date through Wednesday, while the Dow Jones Transportation Average DJT, +0.43% has advanced 8.5% and the Dow Jones Industrial Average DJIA, +0.72% has tacked on 5.2%.
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