UPS Q1 dragged down by Covid-19 restrictions

The impact of Covid-19 dragged profit levels down 15.1% at UPS in the first quarter of the year, to $965 million (£772.8 million), with its international business seeing an increase in operating profit despite a 1.8% decline in volumes.

UPS saw Q1 turnover increase 5% to $18 billion (Q1 2019: $17.1 billion) driven by growth in business-to-consumer shipments and gains in healthcare.

In its international business turnover fell from $3.459 billion in Q1 2019 to $3.383 billion in Q1 2020, while operating profit rose from $528 million to $551 million. Again, UPS said that healthcare, high-tech and e-commerce sectors were positive contributors.

Its supply chain and freight division saw turnover fall to $3.196 billion from $3.221 billion this time last year, while operating profit fell from $200 million to $157 million.

UPS chairman and chief executive David Abney, said: “The world is counting on UPS more than ever before as we support the people on the front lines of this crisis and our customers with speed, ingenuity and reliability.”