United Parcel Service (NYSE:UPS) has reported a downturn in its financial results for the first quarter of 2024, with consolidated revenues falling to $21.7 billion, a decrease of 5.3% from the same quarter in the previous year.
The company's operating profit also saw a significant reduction, dropping by 36.5% to $1.6 billion, and adjusted operating profit down by 31.5%.
Earnings per share were notably impacted, with diluted earnings per share at $1.30, and adjusted diluted earnings per share falling by 35% to $1.43.
The decline in financial performance is partly attributed to a series of costs totaling $110 million related to the company's ongoing transformation initiatives.
These charges included $75 million in after-tax transformation and other charges, plus a $35 million non-cash, after-tax impairment charge associated with the consolidation of certain healthcare brands.
Despite the challenging financial landscape, UPS CEO Carol Tomé expressed optimism about the company's direction and the hard work of its employees.
"Our financial performance in the first quarter was in line with our expectations, and we observed improvement in the average daily volume in the U.S. throughout the quarter," Tomé stated.
She also projected a positive outlook for the company, anticipating a return to volume and revenue growth in the future.