What factors influenced UPS's earnings in 2024?

United Parcel Service (UPS) faced several factors that influenced its earnings in 2024: 1. **Revenue Decline**: UPS experienced a decline in revenue, which fell by 5.3% from the previous year's $22.9 billion to $21.7 billion in Q1 2024. This decline was primarily driven by lower demand, especially in the U.S. domestic package segment, which saw a 5.0% revenue decrease. Additionally, the Supply Chain Solutions segment also faced a 5.3% revenue drop. 2. **Cost Pressures**: The company faced increased costs, which impacted its profit margins. Higher expenses, particularly in the second quarter, led to a decrease in profit margin from 9.4% to 6.5%. This was partly due to inflationary pressures and the implementation of the labor agreement with the Teamsters in 2023. 3. **Operational Challenges**: UPS faced challenges in its core U.S. domestic package segment, which generates about 64% of total revenues. A 3.2% drop in average daily volume and a 2.6% decrease in revenue per piece due to changes in product mix contributed to the revenue decline. The International Segment also faced a 2.9% decrease in average daily volume. 4. **Market Conditions**: The overall logistics market was impacted by macroeconomic conditions, including inflation and a recovery phase after the pandemic. These conditions affected demand patterns and price sensitivity, leading to a more muted demand environment for UPS. In summary, UPS's earnings in 2024 were influenced by a combination of revenue decline, cost pressures, operational challenges, and market conditions.