Shares of UPS fall after company says higher rates offset lower-than-expected volumes in second quarter
Shares of United Parcel Service fell Tuesday morning after the company said higher rates offset lower-than-expected delivery volumes in the second quarter.

The Atlanta-based company said volumes declined and fell short of its forecast by 222,000 packages per day. It attributed the miss partially to reductions in its contracts with customers like Amazon .

"We project by the end of this year that Amazon revenue will be less than 11% of our total revenue," said CEO Carol B. Tome, noting that UPS agreed to a level that makes sense for it and will give the company room to grow in other areas.

UPS stood by its full-year financial outlook after posting earnings and revenue that topped Wall Street expectations.

The company's stock closed down about 3% at $181.53.

For the quarter, the company reported adjusted earnings of $3.29 per share, which was more than the $3.16 per share analysts expected. Revenue for the period was $24.77 billion, also topping the $24.63 billion Wall Street expected.

The strong dollar hurt UPS international business, reducing international revenue by $261 million and profits by $60 million.

For the second half of the year, Chief Financial Officer Brian Newman said that the company anticipates that volume growth rates "will improve slightly" with full-year GDP growth expected to slow.

The company reaffirmed its outlook for full-year revenue of $102 billion and adjusted operating margin of about 13.7%.