UPS 2007 Annual Report Download - page 59

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Forward-Looking Statements
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other parts
of this report contain “forward-looking” statements about matters that inherently are difficult to predict. The
words “believes,” “expects,” “anticipates,” “we see,” and similar expressions are intended to identify forward-
looking statements. These statements include statements regarding our intent, belief and current expectations
about our strategic direction, prospects and future results. We have described some of the important factors that
affect these statements as we discussed each subject. Forward-looking statements involve risks and uncertainties,
and certain factors may cause actual results to differ materially from those contained in the forward-looking
statements.
Risk Factors
The following are some of the factors that could cause our actual results to differ materially from the
expected results described in our forward-looking statements:
• The effect of general economic and other conditions in the markets in which we operate, both in the
United States and internationally. Our operations in international markets are also affected by currency
exchange and inflation risks.
• The impact of competition on a local, regional, national, and international basis. Our competitors
include the postal services of the U.S. and other nations, various motor carriers, express companies,
freight forwarders, air couriers and others. Our industry is undergoing rapid consolidation, and the
combining entities are competing aggressively for business.
• The impact of complex and stringent aviation, transportation, environmental, labor, employment and
other governmental laws and regulations, and the impact of new laws and regulations that may result
from increased security concerns following the events of September 11, 2001. Our failure to comply
with applicable laws, ordinances or regulations could result in substantial fines or possible revocation
of our authority to conduct our operations.
• Strikes, work stoppages and slowdowns by our employees. Such actions may affect our ability to meet
our customers needs, and customers may do more business with competitors if they believe that such
actions may adversely affect our ability to provide service. We may face permanent loss of customers
if we are unable to provide uninterrupted service. The terms of future collective bargaining agreements
also may affect our competitive position and results of operations.
• Possible disruption of supplies, or an increase in the prices, of gasoline, diesel and jet fuel for our
aircraft and delivery vehicles as a result of war or other factors. We require significant quantities of
fuel and are exposed to the commodity price risk associated with variations in the market price for
petroleum products.
• Cyclical and seasonal fluctuations in our operating results due to decreased demand for our services.
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