United Parcel Service, the world's biggest courier company, slashed its earnings forecast for the year as it spends to boost capacity ahead of the holiday shopping season.
UPS's shares fell 3 percent to $99.50 in premarket trading after the company also reported a bigger-than-expected decline in second-quarter profit. (Click here for the latest quote.)
UPS faced criticism last Christmas when a surge in online shopping caught the company off guard, leading to huge delays that frustrated customers.
The company said on Tuesday it would invest $175 million to beef up its capacity and technology to ensure timely deliveries during the peak shopping season beginning around Thanksgiving.