UPS Struggles in First Quarter With Steep Earnings Decline

First quarter earnings results issued this morning by Atlanta-based global freight transportation and logistics services provider UPS were down.

Quarterly consolidated revenue, at $21.7 billion, fell 5.3% annually, and adjusted earnings per share, at $1.43, saw a 35.0% annual decline. Consolidated quarterly operating profit came in at $1.6 billion, which was off 36.5% annually.

“I want to thank all UPSers for their hard work and efforts,” said Carol Tomé, Chief Executive Officer at UPS.  “Our financial performance in the first quarter was in line with our expectations, and average daily volume in the U.S. showed improvement through the quarter. Looking ahead, we expect to return to volume and revenue growth.”

Individual segment results for UPS in Q4 2023:

• U.S. domestic package revenue decreased 5.0%, to $14.2 billion (due to the 3.2% decrease in average daily volume), and average daily package volume was down 3.2% annually, to 18.075 million, with average daily revenue per piece, essentially flat, down 0.3%, to $12.50;
• International Package revenue, at $4.256 billion, was down 6.3% annually (due to the decrease in average daily volume) with average daily volume down 5.8%, to 3.124 million, and average daily revenue per piece, at $20.87, up 2.0%
• (total UPS quarterly average daily volume fell 3.6% annually, to 21,199 million, with average daily revenue per package, down 0.1%, to $13.73); and
• Supply Chain Solutions revenue, at $3.216 billion, fell 5.3% annually, due mainly to market rate declines in forwarding

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