Carol Tomé: 2023 was a unique and difficult year

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

	4Q 2023	Adjusted 4Q 2023	4Q 2022	Adjusted 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

	4Q 2023	Adjusted 4Q 2023	4Q 2022	Adjusted 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 Solutions¹

	4Q 2023	Adjusted 4Q 2023	4Q 2022	Adjusted 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.