UPS (NYSE: UPS) shares fell 5% in early Thursday trade after the company lowered its full-year outlook, citing “unfavorable macro-economic conditions”.

For its third quarter, the company reported EPS of $1.57 on revenue of $21.06 billion. Analysts were looking for a profit per share of $1.53 on revenue of $21.5 billion.

Sales fell 13% year-over-year as U.S. package revenue decreased by 11% form last year.

“While unfavorable macro-economic conditions negatively impacted global demand in the quarter, our U.S. labor contract was fully ratified in early September and volume that diverted during our labor negotiations is starting to return to our network,” said Carol Tomé, UPS chief executive officer.

“Looking ahead, we are well-prepared for the peak holiday season.”

The company now sees FY revenue at $91.8 billion at the midpoint of the range (up or down $500 million), down from the prior forecast of $93 billion. Analysts were looking for a milder revision or $92.82 billion in FY sales.

By Senad Karaahmetovic