UPS 2008 Annual Report Download - page 6

07 07
Adjusted
08 08
Adjusted
06
0504
13.6 14.0
14.4
1.2
14.1*
10.5 11.6*


5
UTED EPS (in dollars)
07 07
Adjusted
08 08
Adjusted
06
0504
2.93
3.86
3.47
0.36
4.11*
2.94
3.50*


management and improved asset utilization also contributed
to the segment’s positive results.

-
tors culminated in a $548 million goodwill impairment of

economy was much stronger and valuations were higher.
Thereafter, we invested in technology and operational
improvements to enhance service and performance, and
expand product offerings.
While customer focus on price has intensified in the
current economy, we believe that our long-term strategy of
offering value through a combination of price, service and
technology has positioned us well for the time when market
conditions improve.




opportunity will not be enough to offset volume losses from
weak economic conditions. Until the economy begins to
improve, UPS likely will continue to experience the volume
declines and the shift in the mix of packages that began a year
ago. As a result, 2009 will be even more difficult than 2008.

bright as the result of several competitive advantages inherent




for 2008, and cash from operations was $8.4 billion. UPS

This is particularly important today as more customers make it
clear that they want a transportation partner who is financially
strong and stable for the long term.
This financial strength also rewards our shareowners. We
increased our dividend in 2008, marking more than four
decades of consecutive quarters in which the dividend was
*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.
Adjustments affecting 2008 pre-tax results include: a
$548 million goodwill impairment charge in our UPS
Freight unit and a $27 million intangible impairment
charge in our European package operations.
Adjusted 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 baseline
for analyzing our underlying businesses. We use these
adjusted nancial measures to determine incentive
compensation awards for our management.
**See page 7 for a calculation of free cash ow.