By Anna Prior
United Parcel Service Inc. on Friday said its board has named
David Abney as its next CEO, succeeding Scott Davis who will retire
from the shipping giant later this year.
Mr. Davis, 62 years old, has served as UPS's chairman and CEO
since 2008 and will assume the role of non-executive chairman, the
company said.
Both moves are effective Sept. 1.
Mr. Abney, 58, is currently the company's chief operating
officer and began his career with the shipping giant in 1974 as a
part-time package loader, the company said. He held various
operational positions at UPS prior to his stint as operating chief,
including president of UPS International where he led the expansion
of the company's global logistics capabilities, UPS added.
Meanwhile, Mr. Davis is a 29-year veteran of the company, and
UPS noted the company made significant improvements in its
logistics network during his tenure as CEO as UPS expanded. Mr.
Davis also presided over rapid growth in international operations
and supply chain and freight, the company said.
Since Mr. Davis took over the CEO post at the beginning of 2008,
the company's share price has risen 50%. Revenue, meanwhile,
increased to $55.4 billion in 2013 from $49.7 billion in 2007.
"As the chairman and CEO for the past nearly seven years, Scott
Davis has skillfully guided UPS through one of the most turbulent
global economic periods in history," said Duane Ackerman, a member
of the UPS board and chairman of the nominating and corporate
governance committee.
Recently, UPS, like other freight and transportation companies,
has had to battle poor winter weather and increasing demand as more
and more people shop online. The entire industry took a hit from
severe weather this year. Package-delivery companies suffered from
the wintry conditions because of the time-sensitive nature of their
domestic delivery networks and the sheer mass of deliveries
affected.
UPS in April posted a lower first-quarter profit, pointing to
unusually harsh weather that increased its expenses and slowed its
revenue growth.
Write to Anna Prior at anna.prior@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires