Express services giant UPS recorded consolidated revenue of $21.7bn in the first three months of this year, a 5.3% fall on its performance in the first quarter of 2023.
Consolidated operating profit was down further, by 36.5% year on year to $1.6bn (and down 31.5% on an adjusted basis).
The company's Supply Chain Solutions division experienced a 5.3% decline in revenue, attributed primarily to ‘market rate declines in forwarding’.
Operating profit in the Supply Chain Solutions segment was also down year on year, although a profit of $132m was made. The operating margin in the division was 4.1% (7% when adjusted).
Meanwhile, revenue and profit also fell year on year in UPS’s International and US Domestic segments.
Carol Tomé, UPS’s chief executive, commented: “Our financial performance in the first quarter was in line with our expectations.
“Looking ahead, we expect to return to volume and revenue growth.”
In January, UPS announced that its revenues in the fourth quarter of 2023 dropped nearly 8% year on year as volumes fell in both its domestic and international segments.
UPS made revenue of $91bn last year. It provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories.
Earlier this month, UPS was awarded a contract by the United States Postal Service (USPS) to become its primary air cargo provider.
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