UPS Q12024 revenue down 5% on lower volumes
UPS has reaffirmed its full-year consolidated revenue to range from approximately $92 billion to $94.5 billion
UPS reported a five percent decline in consolidated revenues at $21.7 billion for the first quarter of 2024.
Consolidated operating profit was $1.6 billion, down 36 percent compared to the first quarter of 2023, says an official release.
“I want to thank all UPSers for their hard work and efforts,” says Carol Tomé, Chief Executive Officer, UPS. “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.”
U.S. domestic segment revenue declined five percent to $14 billion, driven by a 3.2 percent decline in average daily volume. Operating profit was down 44 percent at $825 million.
In the international segment, revenue declined six percent to $4.3 billion on 5.8 percent decline in average daily volume with operating profit dropping to $656 million.
Supply chain solutions revenue was down five percent at $3 billion, and operating profit came in at $132 million, down from $247 million in Q12023.
2024 outlook
For 2024, UPS has reaffirmed its full-year consolidated financial targets:
*Revenue to range from approximately $92 billion to $94.5 billion
*Adjusted operating margin to range from approximately 10 percent to 10.6 percent, and
*Capital expenditure to be approximately $4.5 billion
UPS fleet numbers
UPS had a fleet of 549 aircraft at the end of March 31 2024 out of which 294 were owned and/or operated by UPS and 255 were charters/leases and operated by others.
“Five Boeing MD-11 aircraft out of a total of 36 have been retired from operational use as of March 31, 2024. We anticipate retiring an additional four of these aircraft during 2024.”
UPS has 21 Boeing 767-300s on order at the end of March 31, 2024.
