UPS CEO says “we’re managing through a challenging Omicron environment”

Calling the current moment “a challenging time, for sure,” UPS CEO Carol Tomé said Friday that the package delivery giant was “managing through” the recent spike in Omicron cases, which has led to increased sick calls from its employees.

Speaking to CNBC, the head of UPS (NYSE:UPS) explained that the company had retained some of the seasonal workers it hired for the Christmas holiday to fill in gaps created by the latest strain of COVID.

Commenting on the labor situation generally, Tomé reported that UPS has not been hit by the wave of employee departures that has become known as the Great Resignation, as she has put an emphasis on retaining workers.
“We haven’t seen the Great Resignation that a lot of companies are faced with. But I’m certainly aware of it and doing my best to keep people happy and engaged,” she said.

Asked about reports of increased thefts among logistics carriers, the UPS CEO said she has seen an increase in incidents but that it wasn’t a problem that would show up on the company’s financial figures.

“I wouldn’t say it’s materially higher but it’s something we all need to be concerned about,” she said. Tomé added that the firm’s security team has “leaned into” the problem in order to keep employees and packages safe.

UPS posted a fractional decline in Friday’s pre-market action, slipping to $209.40 at about 9:15 a.m. ET.

UPS staged a steep advance in the first half of 2021 before spending the rest of the year in a broad range. The stock is now sitting off its 52-week peak of $220.24.

Despite its recent lackluster trading, UPS’s gains in early 2021 have allowed it to outperform the broader market for the past year. Shares have climbed about 29% over a 12-month span, compared to a 24% advance in the S&P 500, as you can see in this chart.

Brian Stewart  seekingalpha.com