Features

SAN FRANCISCO — With its “What Can Brown Do For You?” ad campaign, United Parcel Service Inc. uses its familiar brown-garbed workers and brown trucks to remind people of the company’s role in their lives and work. 

The ads also show a different UPS — a one-stop problem solver that handles a range of chores for corporate customers. They’re part of CEO Michael Eskew’s drive to develop services to complement the company’s bread-and-butter package delivery business. 

Under Eskew’s plan, more companies would hire UPS to serve as a distribution hub, an inventory warehouse, a high-tech repair shop and even a telephone call center for customer inquiries. 

“He has clearly articulated this vision — no ifs, ands or buts about it,” said industry analyst Stephen Jacobs of U.S. Bancorp Piper Jaffray. “It’s an absolutely pivotal strategy for UPS.” 

To diversify, Atlanta-based UPS has spent $1.3 billion on 27 acquisitions since 1998. The biggest deals came last year, when UPS picked up retail shipping chain Mail Boxes Etc. and freight forwarding service Fritz Cos. 

The shopping spree helped UPS’s non-package business generate revenue of $1.93 billion through the first nine months of this year, a 36 percent increase from the same time last year. UPS operates in 200 countries, generating more than $30 billion in annual revenue while delivering about 3 billion packages each year. 

Although this year’s shipping volume is slightly lower than last year and the company isn’t making as much money as investors hoped, UPS stock has held up well amid Wall Street’s turmoil. The company’s shares are up 13 percent so far this year, compared with a 21 percent decline in the Standard & Poor’s 500 index. 

Eskew, who became CEO 10 months ago, recently talked to The Associated Press about UPS’s performance and his plans for the future.