UPS released its 2023 financial report, with both revenue and net profit falling short of expectations!

It is learned that recently, United Parcel Service (UPS) announced its fourth quarter and full year financial results for fiscal year 2023.

The financial report shows that for the full year of fiscal year 2023, UPS's operating income was US$90.958 billion, a year-on-year decrease of 9.35%; net profit attributable to ordinary shareholders was US$6.708 billion, a year-on-year decrease of 41.91%, both of which were lower than expected.

In the fourth quarter of fiscal year 2023, UPS's operating revenue was US$24.917 billion, a year-on-year decrease of 7.83%, lower than analysts' expectations of US$25.48 billion; net profit attributable to ordinary shareholders was US$1.605 billion, a year-on-year decrease of 53.52%.

UPS pointed out in its financial report that the reason why the company's performance in fiscal 2023 was lower than expected was mainly due to the negative impact of rising labor costs and declining package demand.

Looking ahead, UPS expects full-year revenue in 2024 to be between $92 billion and $94.5 billion, below analysts' consensus estimate of $95.7 billion; it expects adjusted operating margin to be between 10.0% and 10.6%, also below analysts' expectations of 11.3%.

UPS CEO said the first half of 2024 will be tough for the company's earnings because almost half of the labor agreement costs will take effect in the first year. However, this also means that after August 1 this year, the year-on-year base of the company's performance will be more friendly.