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 (MTM) pension charge of $274 million, after-tax transformation and other charges of $154 million, and a non-cash, after-tax impairment charge of $84 million related to our Coyote trade name in our truckload brokerage unit.
“I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row,” said Carol Tomé, UPS chief executive officer. “2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”
U.S. Domestic Segment
Adjusted Adjusted
4Q 2023 4Q 2023 4Q 2022 4Q 2022
--------- -------- --------- --------
Revenue $16,915 M $18,252 M
Operating profit $1,437 M $1,569 M $1,840 M $2,328 M
------------------ --------- -------- --------- --------
-- Revenue decreased 7.3%, driven by a 7.4% decrease in average daily
volume.
-- Operating margin was 8.5%; adjusted operating margin was 9.3%.
International Segment
Adjusted Adjusted
4Q 2023 4Q 2023 4Q 2022 4Q 2022
-------- -------- -------- --------
Revenue $4,606 M $4,950 M
Operating profit $890 M $899 M $1,020 M $1,091 M
------------------ -------- -------- -------- --------
-- Revenue decreased 6.9%, driven by an 8.3% decrease in average daily
volume primarily due to softness in Europe.
-- Operating margin was 19.3%; adjusted operating margin was 19.5%.
Supply Chain Solutions(1)
Adjusted Adjusted
4Q 2023 4Q 2023 4Q 2022 4Q 2022
------------- ------------- ------------- -------------
Revenue $3,396 M $3,831 M
Operating profit $150 M $319 M $335 M $403 M
------------------ ------------- ------------- ------------- -------------
(1) Consists of operating segments that do not meet the criteria of a
reportable segment under ASC Topic 280 -- Segment Reporting.
-- Revenue decreased 11.4% due primarily to market rate declines and
excess market capacity in forwarding.
-- Operating margin was 4.4%; adjusted operating margin was 9.4%.
Full-Year 2023 Consolidated Results
-- Revenue was $91.0 billion, a decrease of 9.3%.
-- Operating profit of $9.1 billion; adjusted operating profit of $9.9
billion, down 28.7%.
-- Operating margin was 10.0%; adjusted operating margin was 10.9%.
-- Diluted EPS totaled $7.80; adjusted diluted EPS of $8.78.
-- Adjusted return on invested capital was 21.9%.
-- Cash from operations was $10.2 billion and free cash flow was $5.3
billion.
-- In addition, the Company returned $7.6 billion of cash to shareowners
through dividends and share buybacks.
Dividend Declaration
For the 15th consecutive year, the UPS Board of Directors has approved an increase to the company’s quarterly dividend. UPS will pay a first-quarter 2024 dividend of $1.63 per share on all outstanding Class A and Class B shares. The dividend is payable March 8, 2024 to shareowners of record on February 20, 2024.
2024 Outlook
The company provides certain guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.
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%.
(* “) (Adjusted” or “Adj.” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.)
Conference Call Information
UPS CEO Carol Tomé and CFO Brian Newman will discuss fourth-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, January 30, 2024. That call will be open to others through a live Webcast. To access the call, go to and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on under “Quarterly Earnings and Financials” and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2023 revenue of $91.0 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equity and inclusion. More information can be found at , about.ups.com and .
Forward-Looking Statements
This release, our Annual Report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements. Forward-looking statements are made subject to the safe harbor provisions of the federal securities laws pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.