Tome, CEO since June, told CNBC that preparing for vaccine distribution and her first holiday peak shipping season top her 2020 agenda.
Tome spent 18 years as CFO at Home Depot. She has also been a UPS board member since 2003.
From June to August, UPS saw volumes spike 25% or more year over year as the pandemic fueled unprecedented demand for shipping, according to data from ShipMatrix. During Tome's first quarterly earnings call as CEO in July, she said 69% of its delivery volume is residential. Residential shipping is approximately a third less profitable than business shipping, according to Deutsche Bank analyst Amit Mehrota.
UPS' surcharges on large retail shipping exceeding pre-pandemic volumes could generate more than $100 million in extra revenue, according to estimates from ShipMatrix. Several analysts told CNBC that the surcharge move signaled to investors that Tome understood the shift in e-commerce and was prepared to respond to the challenge and opportunity.Tome also said investors will see a shift in how UPS handles capital expenditures.
In August, to prepare for the possible approval and distribution of a Covid-19 vaccine, UPS invested in 600 industrial cooling units or "freezer farms" for sites in Louisville, Kentucky, and the Netherlands. Shares of UPS added more than a third to their value in 2020. Since Tome took over as CEO on June 1, shares rose 50% to $154 each at Tuesday's close. The stock more than doubled from its coronavirus low of $82 on March 12 to its 52-week high of $166 on Sept. 2. UPS was up about 2.5% Wednesday afternoon.
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