UPS increases US volume for first time since 2022, but profit and revenue fall

MICHELLE CHAPMAN, Associated Press

5 minutes ago

FILE – A delivery vehicle passes a UPS depot, June 29, 2023, in New York. (AP Photo/John Minchillo, File)

UPS saw its U.S. volume increase in the second quarter for the first time since 2022, but profit and revenue fell short of Wall Street expectations, partly due to a hefty write-down.

Shares fell 7% before the market opened on Tuesday.

CEO Carol Tome said the U.S. package delivery company reported its first volume growth in nine quarters.

“This quarter was a significant turning point for our business,” Tome said in a prepared statement.

In the three months ended June 30, United Parcel Service Inc. earned $1.41 billion, or $1.65 per share.

Excluding the cost of one volume, earnings were $1.79 per share, well below the $1.98 per share expected by analysts surveyed by Zacks Investment Research.

UPS said the quarter included a charge of $120 million, or 14 cents per share, consisting of a one-time payment of $94 million to settle an international regulatory matter. The period also included transformation and other charges totaling $26 million.

Quarterly revenue was $21.82 billion, below Wall Street’s estimate of $22.31 billion.

The Atlanta-based company now expects annual revenue of about $93 billion. Its previous forecast was for revenue in a range of about $92 billion to $94.5 billion.

Analysts surveyed by FactSet expect revenue of $92.77 billion.