UPS cut its profit projection for the second quarter up to 20 percent on Monday, saying a sagging U.S. economy that has been hurting domestic demand is now hitting international shipping.

The world's largest package delivery company said it expects earnings within a range of $0.83-to-$0.88 per share compared to the previous projection of $0.97-to $1.04 per share.

U.S. Package volume was lower than expected in the quarter as the nation's economy sputtered at an annual gross domestic product rate of less than 1 percent. The slow economy also hurt volume coming into the United States, slowing the company's international segment. Although slow, the supply chain and freight segment performed better than expected, UPS said.

The fuel factor hit profits as well. The price of crude oil has broken several records during the quarter, rising 35 percent from April 1. Consequently diesel and jet fuel prices have soared. Diesel is up 17.5 percent since the beginning of the quarter. The cost of jet fuel is up 16 percent.

On July 22, UPS will release second quarter results.