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UPS has announced first-quarter 2023 consolidated revenues of $22.9 billion, a 6.0% decrease from the first quarter of 2022.
In a press release, the parcel delivery company said its 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.
M0reover, UPS confirmed its diluted earnings per share were $2.19 for the quarter; adjusted diluted earnings per share of $2.20 were 27.9%, also below the same period in 2022.
For the first quarter of 2023, GAAP results included after-tax transformation and other charges of $9.0 million, or $0.01 per diluted share.
Commenting on the figures, Tomé, UPS chief executive officer, said:
“I want to thank all UPSers for delivering industry-leading service to our customers. In the first quarter, deceleration in U.S. 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.”
As regards its outlook for the rest of the year, UPS stressed that it provides certain guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.
“In January, UPS provided a range for its 2023 financial targets based on the macroeconomic forecast at that time. Over the first quarter of 2023, the global volume environment deteriorated due to challenging macro conditions and changes in consumer behavior. As a result, UPS expects full-year revenue and adjusted operating margin to be at the low end of its previously guided range,” said UPS, in a statement.
Finally, the company listed its 2023 full year financial targets as follows:
- Consolidated revenue of around $97.0 billion
- Consolidated adjusted operating margin of around 12.8%
- Capital expenditures of approximately $5.3 billion
- Dividend payments, subject to board approval, of about $5.4 billion
- Share repurchases targeted to be around $3 billion
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Photo: Vauxford, CC BY-SA 4.0, via Wikimedia Commons
