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UPS revenue and profit under pressure

[ April 25, 2023   //   ]

UPS says its first quarter consolidated revenues for 2023 were 6% down on Q1 2022, at $22.9 billion.  

Internationally, revenue decreased by 6.8%, driven by a 6.2% reduction in average daily volume due to lower domestic volume and softness in China trade lanes. 

Consolidated operating profit was $2.5 billion, down 21.8% compared to the first quarter of 2022, and down 22.8% on an adjusted basis.

Chief executive Carol Tomé, said: “In the first quarter, deceleration in US retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia. In response, we focused on controlling what we could control and delivered first-quarter consolidated operating profit and operating margin in line with our base case targets. 

“Given current macro conditions, we expect volume to remain under pressure. We will remain focused on driving productivity while investing in efficiency and growth initiatives, enabling us to come out of this demand cycle even stronger.”

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