LONDON (ShareCast) - (Sharecast News) - UPS shares were falling sharply on Tuesday after the transport and logistics giant missed forecasts with its fourth-quarter results and underwhelmed with guidance for 2024, as well as announcing the removal of 12,000 jobs.
The world's largest package delivery firm, which employs over 500,000 people worldwide, revealed the job cuts after a disappointing end to 2023, in which revenues fell 7.8% to $24.9bn, undershooting market forecasts of $25.4bn.

Operating profits sunk 22.5% year-on-year to $2.5bn, adjusted diluted earnings per share, which exclude non-recurring items, fell 31.8% year-on-year to $2.47, slightly above the consensus estimate of $2.46.

Revenues in the larger US division, which accounts for over half of group revenues, were down 7.3% at $16.9bn with average daily volumes. falling by 7.4%. International sales were 6.9% lower at $4.6bn as softness in Europe led to an 8.3% fall in average daily volumes.

Meanwhile, supply chain solutions revenue reduced by 11.4% to $3.4bn due mainly to market rate declines and excess market capacity in forwarding, the company explained.

For the full 2023 year, group sales fell 9.3% to $91bn, while adjusted operating profits sunk 28.7% to $9.9bn and the operating margin came in at 10.9%.

Looking ahead, UPS guided to 2024 revenues of $92bn to $94.5bn, under the $95.57bn that the market is currently pricing in, while the operating margin is expected to fall to between 10.0% and 10.6%.

The stock was down nearly 8% shortly after the opening bell on Wall Street at $145.64.

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