UPS cuts annual revenue forecast on weak delivery demand

The Atlanta company is caught in a profit squeeze in the wake of contract talks with its Teamsters-represented workforce. It is absorbing 46% of wage and benefit costs of the new five-year contract in the first year even as it tries to win back 1.2 million daily packages that customers diverted to rivals when UPS workers threatened to strike. The world's biggest package delivery firm now expects full-year revenue between $91.3 billion and $92.3 billion, compared with a prior forecast of about $93 billion.