(NEWSnet/AP) –  Delivery company UPS lowered its full-year expectations by $4 billion as its package volumes have declined and the company reviews the impact of a tentative labor contract with its unionized workers.

Package volume has been in decline for all shippers, but fell significantly for UPS during the quarter.

Domestic revenue slid 6.9% during the quarter, as average daily package volume fell 9.9%. The company offset that decline somewhat, however, booking a 3.3% increase in revenue per piece.

CEO Carol Tome said during the company's conference call that union negotiations impacted its package volume the deeper into talks, and the quarter, that they got.

“We expected negotiations with the Teamsters to be late and loud and they were. As the noise level increased throughout the second quarter, we experienced more volume diversion than we anticipated,” she explained.

UPS has reached a tentative deal with the International Brotherhood of Teamsters, potentially averting a strike, with conditions that include pay raises both for full and part-time union workers. For example, starting pay for part-timers would go from the existing $16.20 an hour to $21 an hour. Voting on the new contract began Aug. 3 and concludes Aug. 22.

United Parcel Service Inc. earned $2.08 billion, or $2.42 per share, for the three months ended June 30.

Adjusted earnings were $2.54 per share, which beat the $2.51 per share that analysts surveyed by Zacks Investment Research were looking for.

UPS said that it now foresees 2023 consolidated revenue of about $93 billion. Its prior forecast was for revenue of around $97 billion. Analysts polled by FactSet expect $96.45 billion.

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