UPS cuts guidance again as economic uncertainty weighs
Published: 07:03 26 Oct 2023 EDT
United Parcel Service Inc (NYSE:UPS) lowered guidance for the third quarter in a row as the weak economic backdrop continued to depress demand.
The Atlanta, Georgia-based courier now expects full-year 2023 revenue to be between $91.3 billion and $92.3 billion and a consolidated adjusted operating margin of between 10.8% and 11.3%.
This reflected “global macro-economic uncertainty,” the firm said in a statement.
In July, the firm had cut guidance for revenue to $93 million for 2023, with an adjusted operating margin of around 11.8%, following a previous reduction in April.
In the third quarter, UPS reported an operating profit of $1.34 billion, more than halved from last year’s $3.11 billion, while net income plunged to $1.13 billion from $2.58 billion and diluted EPS slipped to $1.31 from $2.96.
Third-quarter revenue fell 13% to $21.06 billion from $24.16 billion.
"While unfavourable macro-economic conditions negatively impacted global demand in the quarter, our US labour contract was fully ratified in early September and volume that diverted during our labour negotiations is starting to return to our network," said chief executive Carol Tome.
Shares in UPS are down 3.9% at $141.25 in pre-market trading.
