UPS’s second-quarter results show why shipment counts and revenue can tell different stories. In its August 8 release, the company said U.S. Domestic revenue declined 6.9% year over year, while average daily volume fell 9.9%. Revenue per piece increased 3.3%, cushioning—but not eliminating—the effect of fewer packages moving through the network. The segment recorded $14.396 billion in revenue and $1.602 billion in operating profit. That combination points to higher revenue per piece amid lower volume, not to overall domestic growth. The weakness was broader than U.S. package delivery: International revenue fell 13.0%, with average daily volume down 6.6% and continued softness on Asia trade lanes; Supply Chain Solutions revenue declined 23.4%, reflecting forwarding market-rate and volume declines, partly offset by logistics growth including healthcare. At the company-wide level, revenue was $22.1 billion, down 10.9% year over year. UPS attributed the revised full-year outlook primarily to volume effects from labor negotiations and the costs associated with the tentative Teamsters agreement reached July 25. The revised outlook was management guidance, not a reported result: about $93 billion in 2023 revenue and an adjusted operating margin around 11.8%. [story-s1]
Source documents
- UPS Releases 2Q 2023 Earningshttps://about.ups.com/us/en/newsroom/press-releases/financials/ups-releases-2q-2023-earnings.html