UPS Revenues Jump on Price Increases, Shipment Volumes Fall

Scott Peters
26 Apr, 2022
New York City

UPS reported first-quarter 2022 revenues increased 6.4% to $24.4 billion, earnings fell 47% to $2.4 billion, and earnings per share declined to $3.03 from $5.47. 

After adjusting the $2.86 per share or $3.6 billion of gains related to pension and other one-time costs comparable earnings per share in the quarter a year ago were $2.77 a share. 

Total domestic package volumes declined to 19.7 million from 20.4 million a year ago. Total international package volume declined to 3.5 million from 3.8 million and consolidated package volume fell to 23.2 million from 24.1 million a year ago. 

Average revenue per piece for domestic package rose to $11.97 from $10.93 and consolidated revenues per piece increased t0 $13.26 from $12.12 a year ago. 

Revenues in the U.S. domestic segment increased 8% to $15.1 billion and operating profit rose to $1.6 billion from $1.4 billion. Revenue for piece increased 9.5%. 

Revenues in the international segment rose 5.8% to $4.87 billion and operating profit increased 9% to $1.1 billion. Revenues per piece increased 10.5%. 

Revenues in the Supply Chain Solutions segment rose 2% to $4.4 billion and operating profit rose to $473 million from $213 million. 

The company announced its plans to double the amount of share repurchases for 2022, taking the target to $2 billion for the year.

 

Guidance & Outlook 

For 2022, UPS reaffirms its full-year financial targets: 

Consolidated revenue of about $102 billion 

Consolidated adjusted operating margin of approximately 13.7% Adjusted return on invested capital above 30% 

Capital expenditures of 5.4% of revenue, or approximately $5.5 billion 

Dividend payments, subject to board approval, of about $5.2 billion