UPS revenues in the fourth quarter dropped nearly 8% year on year as volumes fell in both the domestic and international segments.
The express giant announced consolidated revenues of $24.9bn in the fourth quarter of last year, a 7.8% decrease from the fourth quarter of 2022.
Meanwhile, consolidated operating profit was $2.5bn, down 22.5% compared to the fourth quarter of 2022.
UPS said of its international segment: “Revenue decreased 6.9%, driven by an 8.3% decrease in average daily volume primarily due to softness in Europe.”
It added that the operating margin was 19.3% and the adjusted operating margin was 19.5%.
UPS Q4 2023 international segment results. Source: UPS
There was a similar pattern within the company’s domestic segment. “Revenue decreased 7.3%, driven by a 7.4% decrease in average daily volume,” said UPS.
And within its supply chain solutions division revenue “decreased 11.4% due primarily to market rate declines and excess market capacity in forwarding”, said UPS.
“I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row,” said Carol Tomé, UPS chief executive. “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.”
This challenging fourth quarter followed an even more difficult third quarter as a result of “unfavorable macro-economic conditions”.
In September last year, UPS announced it was offering severance packages to hundreds of pilots in response to lower demand levels.
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