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UPS’s consolidated revenues for the first quarter of 2024 reached $21.7 billion, down 5.3% compared to the same period last year
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Consolidated operating profit of $1.6 billion decreased 36.5%
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The first-quarter financial performance was in line with expectations, said UPS CEO Carol Tomé
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Average daily volume in the US showed improvement through the quarter
UPS’s consolidated revenues for the first quarter of 2024 reached $21.7 billion, down 5.3% year-on-year, the company said in a statement.
Consolidated operating profit sank 36.5% to $1.6 billion and was down 31.5% on an adjusted basis.
Diluted earnings per share for the quarter were at $1.30, down 35% from the same period last year, and $1.43 on an adjusted basis.
“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,” said UPS Chief Executive Officer Carol Tomé.
In the first quarter of 2024, UPS recorded a total charge of $110 million in GAAP (generally accepted accounting principles) results, equivalent to $0.13 per diluted share. This charge includes after-tax transformation and other charges of $75 million, as well as a non-cash impairment charge of $35 million related to plans for consolidating certain acquired brands within the company’s healthcare portfolio.
Revenue in the US domestic segment decreased 5%, driven by a 3.2% decrease in average daily volume.
At the same time, revenue for the international segment decreased 6.3%, driven by a 5.8% drop in average daily volume.
Revenue from Supply Chain Solution slipped 5.3% primarily due to market rate declines in forwarding.
UPS reaffirmed its full-year financial targets for 2024, including:
- Consolidated revenue ranging from $92 billion to $94.5 billion
- Consolidated adjusted operating margin forecast at 10.0% to 10.6%.
- Capital expenditures of approximately $4.5 billion
UPS reported 2023 revenues of $91 billion.
