One of the world's largest package delivery companies, United Parcel Service (UPS:US),  recently announced cutting its 2023 revenue forecast due to changing market conditions. The decision comes amidst a backdrop of lower e-commerce delivery demand and ongoing efforts to re-engage customers following labor disputes. 

The announcement had an immediate impact on UPS's stock, causing a nearly 5% drop before the markets opened on Thursday.

UPS, known for its global reach and extensive delivery network, currently faces a financial challenge due to contract negotiations with its Teamsters-represented workforce, resulting in a tightening of its profit margins. The revised revenue projection for 2023 anticipates a range between $91.3 billion and $92.3 billion, down from the previous estimate of about $93 billion.

The company attributes its weakened revenue to a downturn in the freight industry, reflecting broader market trends. In response, UPS has chosen to prioritize the transportation of high-margin parcels, with a particular focus on healthcare and other business sectors, as a means of safeguarding its profitability.

"Revenue missed across all three segments with supply-chain solutions missing by the most," TD Cowen analyst Helane Becker said in a client note.

UPS has also adjusted its annual operating margin forecast, reducing it to a range of 10.8% to 11.3%, down from the previous estimate of about 11.8%.

Despite these challenges, UPS reported an adjusted profit per share of $1.57 for the quarter ending in September, exceeding the analysts' average estimate of $1.52, based on data from the London Stock Exchange Group (LSEG). 

This announcement comes after Congressman Scott Franklin reported lowering his position in the supply chain management company back on September 11 in the range of $15,000 - $50,000, when the stock closed at a price of $160.89 per share.