UPS revenues hit by market downturn

UPS 767F. Photo: Boeing

Express services giant UPS was hit by air cargo demand decline in the fourth quarter of 2022.

The cargo carrier’s fourth quarter consolidated revenue was $27bn, down 2.7% on the same three months of 2021.

Consolidated operating profit fell by 17.9% in the final three months of 2022 compared to the same quarter of 2021 to $3.2bn (though it was down only 3.3% on an adjusted basis).

Revenues in UPS’s international segment were hit by softness on China trade lanes, while revenue in its Supply Chain Solutions business was hit hard by volume and market rate declines in air and ocean freight forwarding, though this was partly offset by healthy growth in UPS’s healthcare business.

For the full year, consolidated revenue increased by 3.1% over 2021 to reach $100.3bn, and UPS made an operating profit of £13.1bn; the adjusted operating profit reached $13.9bn, up 5.4% on 2021.

The operating margin was 13%, the adjusted operating margin 13.8%.

Chief executive Carol Tomé referred to UPS having provided “industry-leading service”.

She noted: “For the year, we reached our targeted consolidated operating margin and return on invested capital goals one year earlier than originally anticipated. Our results in 2022 demonstrate our strategy is working.”

Looking ahead, UPS is predicting that for the full year 2023, revenue will be between $97bn and $99.4bn, with a consolidated adjusted operating margin of between 12.8% and 13.6%.

Top 25 air cargo carriers rise to supply chain challenge

UPS orders eight more Boeing freighters

UPS completes Bomi Group purchase to expand in healthcare

Share this story

Related Topics

Latest business news

New partnership aims to create SriLankan Airlines cargo feeder network

MMAG Aviation Consortium (MAC) will establish an air cargo feeder network to support SriLankan Airlines’ cargo operations if an investment…

Read More

Share this story

Logistics trio acquire freight software business

The Cardinal Partnership, Davies Turner and Woodland Group have created a holdings company and purchased UK-based freight software company Forward…

Read More

Share this story

Worsening box line disruption to have limited air cargo impact

Disruption to container shipping operations out of Asia has unexpectedly worsened over recent weeks but the development is expected to…

Read More

Share this story