UPS 2007 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2007 UPS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

07
06
050403
33.5 36.6
47.5
42.6
49.7
REVENUE
(in billions of dollars)
NET INCOME (in billions)
07
06
050403
2.9
3.3
4.2
3.9
0.4
07
Adjusted
4.4*
NET INCOME
(in billions of dollars)
DILUTED EPS
07
06
050403
2.55
2.93
3.86
3.47
0.36
07
Adjusted
4.11*
DILUTED EPS
(in dollars)
* Adjustments affecting 2007 pre-tax results include: a $6.1 billion payment to
withdraw 45,000 Teamster employees from a multi-employer pension plan,
an impairment charge of $221 million on the accelerated retirement of certain
aircraft, a $68 million charge for the special voluntary separation opportunity,
and a $46 million charge related to the restructuring and disposal of a European
supply chain operation. Adjusted fi nancial measures exclude items that may not
be indicative of or are unrelated to our core operating results. We believe they
are an important indicator of our recurring operations and provide a better base-
line for analyzing our underlying businesses. We use these adjusted fi nancial
measures to determine incentive compensation awards for our management.
WH AT WE SEE FO R 2008
Economic uncertainty in the U.S. likely will make 2008
more challenging than 2007. However, UPS has a long
history of growth in many different economic environ-
ments. Strength in the International Package and the
Supply Chain and Freight segments should mitigate what
we expect will be only modest gains in the U.S. Package
segment. We will be vigilant about operating effi ciently,
while keeping a sharp eye on execution. For the year,
we anticipate achieving earnings per share in the range
of $4.30 to $4.50.
At UPS, we are committed to being a company that
people want to do business with, want to work for,
and want to invest in. These people — our customers,
our employees and our shareowners — have a tremendous
opportunity to move forward with us as we capitalize
on global opportunities.
FAREWELL TO A VISIONARY
At the close of 2007, M ike Eskew, our Chairman and
Chief Executive O ffi cer for six years, retired. In M ike’s
35-year career with UPS, he made signifi cant contri-
butions to the company. H e helped set up UPS’s foray
into international operations and was instrumental
in one of the fastest startups of a large airline in history.
M ike also led the company’s expansion into services
complementary to small package delivery — supply chain
management, international freight forwarding and less-
than-truckload freight shipment in the United States.
Under M ike’s leadership UPS realized substantial growth,
and we appreciate his insight and dedication to the com-
pany. H e leaves a strong UPS, and I am both honored
and humbled to be his successor.
D. Scott Davis
Chairman and
Chief Executive O ffi cer
5