UPS Reports Record Revenue Per Package Amid Volume Decline in Q1 2023

Published 1 days agoUPS

UPS Reports Record Revenue Per Package Amid Volume Decline in Q1 2023

UPS has announced its first-quarter 2023 earnings, showcasing a record-high average revenue per package despite a decrease in overall volume. The company reported consolidated revenue of $22.9 billion, representing a 6% drop from the same quarter last year. Operating profit also fell by 21.8% year-over-year, coming in at $2.5 billion.

Despite a decline in volume, the average revenue per package saw a notable increase. In the U.S. Domestic Package segment, average revenue per piece rose to $13.74, marking a 3.6% increase from the previous year. Similarly, the International Package segment saw a marginal increase to $20.47. However, UPS faced a 5.4% reduction in U.S. Domestic average daily volume, nearly offset by a 4.8% rise in revenue per piece. International revenue fell by 6.8%, fueled by a 6.2% drop in average daily volume. The Supply Chain Solutions segment was hit by a 22.5% decrease in revenue primarily due to declining market rates and volumes in forwarding, softened somewhat by growth in their healthcare business.

CEO Carol Tomé noted that challenges such as slowing U.S. retail sales and persistent demand weakness in Asia have impacted performance. As reported by Business Wire, Tomé emphasized that UPS is prioritizing productivity and efficiency to maneuver through the current demand cycle effectively.

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