For the first quarter, UPS' net income dropped to $1.9 billion from $2.66 billion, or $2.19 per share from $3.03 per share, a year earlier. Its revenue dropped 6 percent compared to the same period last year.
Shares of United Parcel Service fell on Tuesday after the American trucking and delivery company reported first quarter misses on both, revenue and earnings.
According to some analysts, the relatively weak UPS report, hints at a larger economic slowdown, particularly when taken with the CEO Carol Tome's comments. “In the first quarter, deceleration in U.S. retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia,” Tomé said in a statement. “Given current macro conditions, we expect volume to remain under pressure," Tomé said, CNBC reported.
For the first quarter, UPS' net income dropped to $1.9 billion from $2.66 billion, or $2.19 per share from $3.03 per share, a year earlier. Its revenue dropped 6 percent compared to the same period last year.
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On Tuesday, Tomé told CNBC that a larger, industry-wide drop in retail sales in March impacted UPS as well.
She said there was a change in consumer shopping behaviour, which led to increased spending on services as well as categories like dining, food, rather than the type of goods that may have delivered by UPS.
Earlier, the company had forecast its 2023 profit margin to tighter, following record profit in 2022.
The company's CFO Brian Newman, during the fourth-quarter earnings call, said the firm expected this year to a "bumpy year".
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