UPS revenue drops 5% in Q1

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Express services giant UPS recorded consolidated revenue of $21.7bn in the first three months of this year, a 5.3% fall on its performance in the first quarter of 2023.

Consolidated operating profit was down further, by 36.5% year on year to $1.6bn (and down 31.5% on an adjusted basis).

The company’s Supply Chain Solutions division experienced a 5.3% decline in revenue, attributed primarily to ‘market rate declines in forwarding’.

Operating profit in the Supply Chain Solutions segment was also down year on year, although a profit of $132m was made. The operating margin in the division was 4.1% (7% when adjusted).

Meanwhile, revenue and profit also fell year on year in UPS’s International and US Domestic segments.

Carol Tomé, UPS’s chief executive, commented: “Our financial performance in the first quarter was in line with our expectations.

“Looking ahead, we expect to return to volume and revenue growth.”

Source: UPS

In January, UPS announced that its revenues in the fourth quarter of 2023 dropped nearly 8% year on year as volumes fell in both its domestic and international segments.

UPS made revenue of $91bn last year. It provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories.

Earlier this month, UPS was awarded a contract by the United States Postal Service (USPS) to become its primary air cargo provider.

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