UPS announces 2Q 2024 financial results


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UPS has announced second-quarter 2024 consolidated revenues of $21.8bn, a 1.1% decrease from the second quarter of 2023. Consolidated operating profit was $1.9bn, down 30.1% compared to the second quarter of 2023, and down 29.3% on an adjusted basis.

“I want to thank all UPSers for their hard work and efforts in the second quarter,” said Carol Tomé, UPS chief executive officer. “This quarter was a significant turning point for our company as we returned to volume growth in the U.S., the first time in nine quarters. As expected, our operating profit declined in the first half of 2024 from what we reported last year. Going forward we expect to return to operating profit growth.”

U.S. Domestic Segment

  • Revenue decreased 1.9%, driven by a 2.6% decrease in revenue per piece due primarily to changes in product mix.
  • Operating margin was 7.0%; adjusted operating margin was 7.1%.

International Segment

  • Revenue decreased 1.0%, driven primarily by a 2.9% decrease in average daily volume.
  • Operating margin was 16.4%; adjusted operating margin was 18.9%.

Supply Chain Solutions

  • Revenue increased 2.6% due primarily to growth in logistics, including healthcare.
  • Operating margin was 7.1%; adjusted operating margin was 7.3%.

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 2024, UPS updates its full-year, consolidated financial targets:

  • Consolidated revenue expected to be approximately $93.0bn
  • Consolidated adjusted operating margin expected to be approximately 9.4%
  • Capital expenditures of approximately $4.0bn
  • Targeting around $500m in share repurchases

Source: UPS

 

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