Industrials

By Tomi Kilgore A FedEx exec had said the company held on to ‘all’ of the market share it gained while UPS was negotiating with Teamsters ‘By the end of December, we had won back and pulled through nearly 60% of the volume diverted during our labor negotiation.’UPS Chief Executive Carol Tomé That, from a FactSet transcript of United Parcel Service Inc.’s fourth-quarter earnings call Tuesday, appears to be UPS Chief Executive Carol Tomé’s way of saying you shouldn’t believe rival FedEx Corp.’s recent claims on how much market share it’s been able to gain recently. In August, Tomé acknowledged that “late and loud” negotiations between UPS (UPS) and the Teamsters union had led to the more customers than expected going elsewhere to ship their goods. That labor friction, FedEx Chief Customer Officer Brie Carere said last summer, had “opened a lot of doors” to take share from UPS. Then, […]

United Parcel Service is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. The package delivery company said it planned to reduce staff by about 12,000, and is expecting to cut costs by $1 billion this year. The company also said it is exploring strategic alternatives for its truckload brokerage business. Dow Jones & Co. owns Factiva.

United Parcel Service’ announcement regarding the exploration of alternatives for its freight business Coyote Logistics comes about three months after digital startup Convoy, backed by investors including Jeff Bezos and Bill Gates, wound down its operations. “Coyote represents a relatively small piece of UPS’ business and has seen a lot of volatility amid revenue pressure, but we didn’t expect this,” Citi analyst Christian Wetherbee tells WSJ. “The U.S. freight economy has had two particularly bad years, as freight saw a recession over the past 12 to 18 months, but we’re getting past that,” Wetherbee says. UPS shares fall 7.1% to $146.80.

UPS Releases 4Q 2023 Earnings — Consolidated Revenues of $24.9B, Compared to $27.0B Last Year — Consolidated Operating Margin of 9.9%; Adjusted* Consolidated Operating Margin of 11.2% — Diluted EPS of $1.87; Adj. Diluted EPS of $2.47, Compared to $3.62 Last Year — Declares a Quarterly Dividend of $1.63, a $0.01 Increase Per Share ATLANTA–(BUSINESS WIRE)–January 30, 2024– UPS (NYSE:UPS) today announced fourth-quarter 2023 consolidated revenues of $24.9 billion, a 7.8% decrease from the fourth quarter of 2022. Consolidated operating profit was $2.5 billion, down 22.5% compared to the fourth quarter of 2022, and down 27.1% on an adjusted basis. Diluted earnings per share were $1.87 for the quarter; adjusted diluted earnings per share of $2.47 were 31.8% below the same period in 2022. For the fourth quarter of 2023, GAAP results include a total charge of $512 million, or $0.60 per diluted share, comprised of a non-cash, after-tax mark-to-market

UPS Reports Q4 EPS $2.47, vs. Street Est of $2.46.

-8.39% For the full year 2024, UPS expects revenue to range from approximately $92.0 billion to $94.5 billion and consolidated adjusted operating margin to range from approximately 10.0% to 10.6%. The company is planning capital expenditures of about $4.5 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is expected to be around 23.5%.

By Esther Fung United Parcel Service said Tuesday that it plans to cut about 12,000 jobs this year, a move that the package-delivery giant said would result in $1 billion in savings. Most of the cuts will be to full-time and part-time management positions and contract workers, and executives said they don’t expect these jobs to return when parcel volumes return. UPS has around 85,000 workers in management. Chief Executive Carol Tomé said that the company is using artificial intelligence and other new technologies to boost its operations. The job cuts were unveiled after the company said its revenue declined in the last quarter of 2023 as volumes in both its domestic and international businesses dropped. Write to Esther Fung at esther.fung@wsj.com