Shares of industrial and transportation companies took a hit following a mixed bag of earnings reports. Notably, United Parcel Service (UPS) experienced a decline in share value after falling short of Wall Street’s expectations for fourth-quarter earnings and revealing a conservative forecast for revenue growth.
In response to the company’s struggles, UPS announced plans to lay off approximately 12,000 workers throughout the year. Additionally, starting from March 4, the firm will require its staff to work from offices five days a week, a decision that caught the market by surprise. Moreover, UPS startled investors with its revealed intention to explore strategic alternatives for its Coyote Logistics unit.
Another company in the spotlight is A.O. Smith, the manufacturer of water heaters, plumbing supplies, and water-treatment products. Unfortunately, A.O. Smith’s forecast for growth fell short of certain Wall Street targets leading to a decline in its share value.
On a more positive note, General Motors (GM), the automotive giant, is optimistic about potentially stronger profits this year. GM expects to reduce losses related to electric and driverless cars and bounce back from the negative impact of a factory strike during the fourth quarter.
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