UPS reports fall in earnings for Q3

UPS today announced a 12.8% decrease of consolidated revenues to $21.1 billion for Q3, citing "unfavourable macro-economic conditions".

Consolidated operating profit was $1.3 billion, down 56.9% compared to the third quarter of 2022, and down 48.7% on an adjusted basis.

Diluted earnings per share were $1.31 for the quarter; adjusted diluted earnings per share of $1.57 were 47.5% below the same period in 2022. 

For the third quarter of 2023, GAAP results included an after-tax charge of $219 million or $0.26 per diluted share, comprised of a one-time payment of $46 million to certain US-based non-union part-time supervisors, transformation and other charges of $70 million, and non-cash goodwill impairment charges of $103 million.

“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. I want to thank all UPSers for their hard work and efforts during this challenging time and for once again providing industry-leading service to our customers,” said Carol Tomé, UPS chief executive officer. “Looking ahead, we are well-prepared for the peak holiday season.”