UPS 2006 Annual Report Download - page 7

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0%
5%
10%
15%
20%
25%
30%
Return on Equity (in percent)
06
26.0
05
040302
23.3
21.3
21.2
28.0
Dividends Paid (in billions)
$0
$0.4
$0.8
$1.2
$1.6
$2.0
06
1.6
05
040302
1.4
1.2
1.0
0.8
For the total company, then, we anticipate earnings
will improve in the range of 6-to-10 percent over
2006 results.
UPS is dedicated to building capabilities for prof-
itable, long-term growth to benefi t our customers,
our employees, and our shareowners. To achieve
this, we will:
• continuously evaluate the dynamics of the
marketplace to anticipate our customers’ needs.
• invest our capital in new ventures where the
return and risk profi le create shareowner value.
• focus on UPS’s core competency—optimizing
networks, both physical and informational.
• innovate to maintain our competitive advantages.
• manage our fi nancial policies for total
shareowner returns.
As we conclude our fi rst century of service in 2007,
we will continue to hold fast to what has made us
successful. There are certain timeless values and
philosophies that defi ne our culture at UPS and
the most signifi cant, I believe, is the extraordinary
dedication of our people.
To that end, I want to recognize the contributions
of John Beystehner, who retired in January 2007
as Chief Operating Offi cer of the company after a
36-year career with UPS. David Abney succeeded
John and brings extensive experience across our
business, including small package, supply chain,
and international operations. Replacing him is Alan
Gershenhorn, who has joined the Management
Committee. Alan has broad experience in our do-
mestic and international small package business, as
well as in the international supply chain operations.
Lastly, Scott Davis assumed the additional respon-
sibilities of Vice Chairman in addition to his role as
Chief Financial Offi cer, a move that will allow me
to spend more time with customers and evolve our
strategy to meet their future needs.
UPS’s founder, Jim Casey, was fond of saying,
“Our horizon is as distant as our mind’s eye wishes
it to be.” As I scan today’s horizon and see what
lies before us, I know that Jim would be proud of
the transformation of UPS into the world’s premier
enabler of global commerce.
Michael L. Eskew
Chairman and Chief Executive Offi cer
5