United Parcel Service (UPS), the world's biggest⛄ package delivery company, posted mixed second-quarter results on Tuesday, beating on earnings but falling short on revenue amid a pullback in deliveries and labor negotiations.

The company posted an operating profit of $2.8 billion, or $2.54 per adjusted share. Earnings per share came in above Wall Street estimates, but well below the $3.29 figure in the same quarter last year. Revenue of $22.1 billion fell short of expectations of $23 billion, and was down 10.9% from $24.8 billion in the year-ago quarter.

Lower deliveries and package volumes were partly to blame, as consumers shopped less online and ordered fewer products amid a pullback in discretionary spending. Domestic revenue fell 6.9% to $14.4 billion, from $15.46 billion in the year-ago quarter. It's a divergence from seasonal trends, as revenue has historically tended to rise in the fiscal second quarter.

Labor Negotiations

UPS has been involved in a series of negotiations with the International Brotherhood of Teamsters, a labor union representing its workers. The two parties reached an agreement last month, which secured higher wages, better working conditions, and other workplace improvements for up to 340,000 UPS workers.

The company lowered its revenue and 澳洲幸运5官方开奖结果体彩网:profit margin forecasts as a result. Consolidated revenue for 2023 is now forecast at $93 billion🧜, with a projected operating margin of 11.8%, below the cur🉐rent 13.2%.

"UPS is updating its full-year 2023 consolidated revenue and adjusted operating margin targets primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023," the company said.

Investments Abroad

Despite a subdued profit forecast, UPS is expanding its footprint with new investments and 澳洲幸运5官方开奖结果体彩网:capital expenditures abroad. It's on track to open a new healthcare facility in Dublin later this year, which would expand the company's healthcare footprint in Europe and generate close to $10 billion in annual revenue. The company is also partnering with InterGlobe Enterprises to develop a logistics facility in India to serve the needs and demands of the local market.

UPS shares were down as much as 3% in early trading Tuesday before recovering losses. They're up just under 4% so far this year.