UPS expects lower revenues in the new year

UPS expects revenue to fall further in the new year after posting a surprise decline in the fourth quarter.

Although UPS CEO Carol Thomé forecast sales of $97 billion to $99,4 billion for 2023, this estimate is more pessimistic than analyst estimates. Adjusted clean operating income will also decrease, ranging from 12,8 to 13,6 percent, compared to 13,8 percent last year.

In the fourth quarter, sales fell 3 percent to $ 27 billion, but analysts had expected an increase. There was a decline in shipments in both the US market and international business. Adjusted operating profit also fell by almost 3 percent. The bottom line is that UPS earned almost 3,5 percent more than in the same period last year at just under XNUMX billion dollars. However, this was mainly due to a positive effect on employee pensions. This is reported by the German aviation portal Aero.

Despite this, shareholders will start receiving an adjusted dividend beginning in the first quarter of 2023, which has been increased to $1,62 per share. In addition, the company plans to invest money again in buying back its own shares. The board of directors has earmarked $5 billion for this, of which $3 billion will flow in the current year.