UPS said it would prioritize some packages over others as it issued financial targets and “green” plans Wednesday (June 9). Executives said the delivery company planned to capture more business from healthcare and small and medium-sized businesses (SMBs).
That follows first-quarter results, reported April 27, that UPS domestic revenues were up 22.3 percent for the first quarter, driven by growth from SMBs. In a press release, UPS added that its first-quarter consolidated revenue was $22.9 billion, a 27 percent increase over the first quarter of 2020.
Executives issued growth forecasts largely in line with Wall Street estimates on Wednesday, and said they planned to gain more business from SMBs. UPS estimated that 2023 consolidated revenues would range from approximately $98 billion to approximately $102 billion.
UPS said its 2020 consolidated revenues were $84.6 billion.
Reuters reported that UPS stock fell by 6 percent at one point Wednesday. However, shares had nearly doubled over the past year.
“Not all packages are attractive to us,” CEO Carol Tomé said during the company’s webcast Wednesday.
Amazon and other large eCommerce companies can negotiate lower shipping rates than SMBs. Healthcare deliveries, including temperature-monitored shipments from companies like vaccine maker Pfizer, are more lucrative.
In its release, UPS said it was setting environmental, social and governance (ESG) goals that would make the company carbon neutral by 2050.
The company said it would commit to cutting in half the carbon dioxide emissions per package by 2035 over its global small-package operations. (The baseline year would be 2020.)
In addition UPS said that all company facilities would be powered by renewable electricity by then as well. Also, that 30 percent of the fuel used in its aircraft globally would be sustainable.
UPS announced in April that it would bring at least 10 — and possibly up to 150 — electric-powered vertical takeoff aircraft into its fleet starting in 2024. The vehicles would come from Vermont-based Beta Technologies.