UPS reported a sharp drop in revenue and profit in the second quarter. The company also cut its profit forecast, expecting narrower margins in the wake of its tentative deal with the Teamsters union.
Shares of UPS fell 7% in premarket trading following the report.
UPS reported adjusted income of $2.2 billion in the quarter, down 27% from a year earlier, though slightly better than estimates of analysts surveyed by Refinitiv. Revenue fell 11% to $22.1 billion.
The company also trimmed its full-year revenue outlook by $4 billion to $93 billion. UPS said it lost business during its labor negotiations and online purchases have been weaker. It also said its full-year profit margin will be 1% lower than its previous guidance, partly due to the cost of the labor deal with the union.
The company reached a tentative deal with the Teamsters on July 25, just ahead of an August 1 strike deadline. The 340,000 members of the union who work at the company are now voting on whether or not to ratify the deal. Vote results are expected on August 22.
This is a developing story. It will be updated
