UPS Cuts 2023 Revenue Forecast Amid Global Economic Uncertainty and Increased Labor, Fuel Costs

Shipping giant's shares plummet 5% after announcing 12.8% decline in Q3 revenue and lower full-year projections due to decreased e-commerce delivery demand and rising labor, fuel costs.

Shares of UPS slipped nearly 5% following the release of Q3 reports, that showed a 12.8% decrease in revenue year-over-year with consolidated revenue around $21.1 billion.
UPS' reduced full-year revenue outlook is now expected to be between $91.3 billion and $92.3 billion, down from its previous projection of $93 billion. This comes in the face of global economic uncertainty and increased labor and fuel costs.
During rounds of labor negotiations with Teamsters, UPS saw some of their business divert to their competitors. However, post negotiations, some of this volume is allegedly returning to their network.
Despite favorable negotiations, labor and fuel costs have still led to a significant increase in operational costs, impacting the company's profit margins.
UPS has been investing heavily in technology and job cuts to counterbalance factors such as decreased e-commerce demand, weak export and industrial production, alongside the cost implications of its new labor contract.