In May, UPS announced the departure of CFO Brian Newman, who stepped away to focus on his personal health. Taking the role in 2019, Newman saw the carrier through the pandemic, supply chain issues, and diminished demand. Now, Brian Dykes, a seasoned professional with 25 years of UPS experience, will pick up where Newman left off. As of July 9, he is responsible for "UPS's financial strategies and will lead the global finance organization, including planning, treasury, tax, financial reporting, financial operations, and investor relations."

What are some of the challenges Dykes will face as he steps into this role?

In its first earnings call of 2024, CEO Carol Tomé shared that consolidated revenue and operating profit were down 5.3% and 31.5%, respectively, in the first quarter. She said this was "due for the most part to higher labor costs associated with the first year of our Teamster's contract."

However, the carrier expects to turn things around, projecting consolidated revenue between $92.0 billion and $94.5 billion this year. To achieve these results, it predicts a slow first half and growth in the second half. In the press release announcing Newman's departure, Tomé thanked him for his contributions and reiterated, "We affirm our full-year guidance as previously shared in the last earnings call."

With a new financial captain at the helm, the ship is proceeding full steam ahead toward its Better and Bolder strategy.

What is the Better and Bolder strategy?

While some believe in a bigger and better strategy, UPS has chosen a Better and Bolder strategy, taking proactive moves that create growth while improving productivity and efficiency. By following this plan, UPS aims to increase its consolidated revenue from approximately $108 billion to approximately $114 billion by 2026.

Dykes published a post on his LinkedIn profile, saying that "UPS Finance will remain laser-focused on delivering our Better and Bolder strategy. We have the right plan and the best team out there – there's no other group of professionals I'd want to work with to reach our goals!"

Here's how you can save money as UPS seeks to increase its revenue

As Dykes and the UPS team focus on their Better and Bolder goals, financial changes may be on the horizon. These changes could include shifts in expenditures, cost-saving measures, and revenue-generating initiatives.

Protect your shipping costs from UPS's big, bold changes with ShipRx's parcel audits and parcel rate negotiations. ShipRx's parcel audit service automatically audits every shipment and requests refunds on your behalf for service failures and incorrect charges. With ShipRx on your side for UPS parcel rate negotiations, you'll have access to over 30 years of experience and the most up-to-date insights on shipping costs for your industry.

Get in touch today for a free savings analysis and find out how much you can save.