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

• 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

• 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

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.