UPS Delivers Lackluster Q1 Results Amidst Shipping Slowdown

United Parcel Service, Inc. (UPS) reported disappointing first-quarter results on Tuesday, reflecting a significant slowdown in the shipping industry. Revenue declined by 5.3% year-over-year, while operating profit dropped by 31.5% after adjusting for inflation. The steep decline in operating profit was attributed to recent salary negotiations with the Teamsters, resulting in a $170,000 salary guarantee for delivery truck drivers over the next five years. Despite the overall decline, UPS shares gained 2.4% on Tuesday as quarterly profit exceeded analyst expectations. The company also announced a new contract with the United States Postal Service (USPS) to provide air cargo services, which is expected to contribute to revenue growth and align with UPS’s strategy to expand its B2B business.

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