United Parcel Service (UPS): How Is The Management Playing The Macro Cycle? 

United Parcel Service Inc. (UPS) reported consolidated revenue of $21.7 billion, marking a 5.3% decline YoY. The operating profit came in at $1.7 billion, down by 31.5% in comparison to the previous year, largely as a result of higher labor costs associated with the first year of the Teamsters contract. The consolidated operating margin was at 8%. A notable development in the quarter is UPS’s deal with the United States Postal Service, where it plans to become the primary air cargo provider. According to CEO Carol Tomé, this aligns with UPS’s goal to expand its business-to-business footprint. The contract is expected to contribute to the top line growth and be accretive to consolidated and U.S. domestic operating margins.