UPS Q42023 operating profit down 27%

Consolidated revenue for Q42023 was down 8% at $24.9 billion

UPS Q42023 operating profit down 27%
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UPS reported a 27 percent decline in adjusted operating profit at $2.8 billion for the fourth quarter ended December 31, 2023 on lower revenues in both the domestic and the international segments.

Consolidated revenue was down eight percent at $24.9 billion and adjusted earnings per share (EPS) dropped 32 percent to $2.47, says an official release.

"For the fourth quarter of 2023, GAAP results include a total charge of $512 million, or $0.60 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $274 million, after-tax transformation and other charges of $154 million, and a non-cash, after-tax impairment charge of $84 million related to our Coyote trade name in our truckload brokerage unit."

Carol Tomé, Chief Executive Officer, UPS

Carol Tomé, Chief Executive Officer, UPS says: “I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row. 2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”

Domestic segment revenue declined seven percent to $16.9 billion and adjusted operating profit dropped 32 percent to $1.6 billion. International segment revenue was down seven percent to $4.6 billion, and operating profit came in at $899 million.

For the full year 2023, revenue was down nine percent at $91 billion, and adjusted operating profit declined 29 percent to $9.9 billion.

2024 outlook
For the full year 2024, UPS expects revenue to range from approximately $92 billion to $94.5 billion, and consolidated adjusted operating margin to range from approximately 10-10.6 percent.

UPS is planning capital expenditures of about $4.5 billion and dividend payments of around $5.4 billion, subject to board approval, the release added.

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