Atlanta, Georgia – UPS, a global shipping company, has revealed its plans to target $500 million in share repurchases in 2024. The company outlined its financial strategies and future acquisitions, including the recent sale of its trucking business Coyote Logistics to RXO Logistics and the agreement to acquire Mexican express delivery company Estafeta.
In their quarterly report for the period ended June 30, UPS fell short of Wall Street expectations with adjusted earnings per share at $1.79 compared to the expected $1.99 and revenue at $21.8 billion against the expected $22.18 billion. The company reported a net income of $1.41 billion, or $1.65 per share, down from $2.08 billion, or $2.42 per share, from the previous year. After adjusting for regulatory matters, UPS reported earnings of $1.79 per share and operating profit of $1.94 billion, a decrease from $2.78 billion the previous year.
UPS CEO Carol Tomé expressed optimism for the future despite the decline in operating profit, citing a return to volume growth in the U.S. as a positive sign for the company. The company’s revenue also saw a decrease to $21.82 billion from $22.06 billion, mainly impacted by declines in both domestic and international segments. The U.S. operation experienced a 1.9% drop in revenue, while the international segment saw a 1% decrease in revenue due to lower average daily volumes.
Despite challenges in the shipping sector, UPS remains focused on growth, particularly in their supply chain solutions segment, which saw a 2.6% revenue increase from the previous year. The company’s recent partnership with the United States Postal Service as the primary air cargo provider reflects UPS’s ongoing efforts to expand its market presence.
Investors are closely monitoring UPS’s performance amidst a global freight recession, looking for signs of improvement in demand. The company’s ability to navigate these challenging market conditions will be crucial for its future success. UPS’s strategic decisions and financial outlook will continue to shape its position in the competitive shipping industry.