New York, Aug 8 (AP) Revenue declined at UPS in the second quarter and the package delivery company lowered its full-year revenue expectations by USD 4 billion as package volumes decline, and after reaching a tentative labour contract reached late last month with its 340,000 unionised workers.

Package volume has been in decline for all shippers and fell significantly for UPS during the quarter. Shares for the Atlanta company slid about 5 per cent before the opening bell Tuesday.

Also Read | Imran Khan Appeals His Conviction in Graft Case, Seeks Release From Jail.

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

UPS reached a tentative deal with the International Brotherhood of Teamsters, potentially averting a strike that threatened to disrupt package deliveries for millions of businesses and households nationwide.

Also Read | ‘Vampire Child’: Archaeologists Unearth Skeleton Remains of a Child with Padlock Anklet in Poland’s Necropolis (See Pics).

Under the agreement, which still needs to be approved by union members, full- and part-time union workers will get USD 2.75 more per hour in 2023, and USD 7.50 more by the end of the five-year contract.

The deal includes a provision to increase starting pay for part-time workers — whom the union says are the most at risk of exploitation — from USD 16.20 per hour to USD 21 per hour. The average pay for part-timers had been USD 20.

Voting on the new contract begins August 3 and concludes August 22.

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

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

Revenue declined to USD 22.06 billion from USD 24.77 billion, missing Wall Street's estimate of USD 22.88 billion.

Revenue for the domestic and international segments fell as average daily volume dropped.

UPS said that it now foresees 2023 consolidated revenue of about USD 93 billion. Its prior forecast was for revenue of around USD 97 billion.

Analysts polled by FactSet expect USD 96.45 billion. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)