UPS beats quarterly profit target, poised for ‘cloudy’ 2023
United Parcel Service Inc (UPS.N) on Tuesday beat expectations for quarterly adjusted profit, as it prioritized lucrative shipments and kept a tight lid on costs as global recession threatens and inflation deflates e-commerce demand.
Shares of the world’s largest parcel delivery firm rose 3.8% to $183.78 in early trading after UPS also raised its quarterly dividend by 6.6% and announced a new $5 billion share repurchase plan.
Executives at the Atlanta-based company said they are paring costs to match a decelerating transportation market that has translated into softer demand for UPS air shipments and home deliveries, while also investing in future growth.
UPS Chief Executive Officer Carol Tomé described the outlook for economic growth in 2023 as “cloudy.”
“Geopolitical tensions are rising and we have a labor contract to negotiate for us to enter the year of rebuilding,” Tomé said, referring to the July 31 expiration of the contract covering the company’s Teamsters-represented workers.
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