Business, Freight News, Logistics

UPS Q4 revenue drops 3% to $27bn

[ February 1, 2023   //   ]

United Parcel Service (UPS) reported a 3% decline in Q42022 revenue at $27 billion on 3% increase in domestic package revenue and 8% drop in international package revenue.
According to a press statemen consolidated operating profit was $3.2 billion, down 17.9% compared to the Q4 2021, and down 3.3% on an adjusted basis
Carol Tomé, chief executive officer, UPS, commented that for the year, UPS reached its targeted consolidated operating margin and return on invested capital goals one year earlier than originally anticipated. “Our results in 2022 demonstrate our strategy is working,” she says.
The U.S domestic segment revenue at UPS increased 3% to $18.3 billion on over 7% increase in revenue per piece ($11.95 compared to $11.15 per piece during the same period last year). Supply chain solutions revenue dropped 18% to $3.8 billion due to, UPS says, volume and market rate declines in air and ocean freight forwarding, partially offset by growth in its healthcare business.
For the full year 2022, consolidated revenue increased 3% to $100.3 billion and adjusted operating profit was up 5% at $13.9 billion. For the full year 2023, UPS expects revenue to be between $97-99.4 billion and capital expenditures to be about $5.3 billion.