UPS 2010 Annual Report Download - page 5

After more than two years of economic turmoil we saw signs of recovery in 2010.
Emerging from the recession as a stronger and more responsive organization, UPS was
uniquely positioned to benefit from the improving business conditions. The result was a
9.4 percent increase in revenue to $49.5 billion and adjusted* diluted earnings per share
soaring 54 percent. Our business strategy was driven by three tenets: creating value for
customers, transforming our business, and investing for growth.
* See pages 23-24 of our Form 10-K for explanations of adjustments.
During the year, UPS implemented a major restructuring plan
for its U.S. operations and completed several ambitious in-
frastructure projects. We continued to expand into emerging
international markets as well as introduce industry leading
products to customers around the world.
The tremendous financial performance that UPS realized
during 2010 was a direct result of tough decisions made
during the recession and the superb execution by the UPS
team. We experienced balanced growth across all business
segments and achieved record profit levels in International
Package and Supply Chain and Freight.
Looking back, I am proud of our many accomplishments.
Here are some of the highlights from 2010:
Creating Value
Advancements in our industry-leading technology allowed
us to introduce new products and services in 2010 that
simplified and improved customers’ business processes.
• To help our customers better manage returns in the United
States, we now offer UPS Returns® Flexible Access, a low
cost and high quality service that provides unmatched
alternatives to customers.
• We introduced UPS Smart Pickup®, a service that saves
money by eliminating scheduled stops that are unneces-
sary and routes unscheduled ones to the nearest driver.
• In April, we released the first-to-market mobile applica-
tion for Google® AndroidTM smart phones, adding to our
comprehensive suite of applications for mobile devices.
• For our International customers, we introduced UPS
Import ControlSM, a solution that allows them to better
manage inbound shipments.
• We continue to develop new innovative service
offerings in the Ocean Freight market, and in 2010,
we introduced UPS Preferred® LCL Ocean Freight. This
service offers less-than-container load Ocean Freight
customers improved shipment visibility and day-definite
delivery commitments up to 20 percent faster than
traditional services.
Transforming to Compete
In 2010, small package operations in the United States were
transformed to serve our customers more effectively and
ensure our future success. Now organized along strategic
market lines—with resources closer to customers—we are
focused on what is necessary to compete and win.
Technology continues to transform our superior global
network. For example, Telematics software has been
implemented in approximately one third of our U.S. package
car fleet. This technology not only increases productivity and
reduces cost, but it also improves safety.
Investing to Grow
In 2010, UPS completed significant infrastructure projects
that have strategically enhanced our global network.
And, we invested in technology that has further improved
operational efficiency.
• We completed the expansion of Worldport®, our global
air hub, ahead of schedule and under budget. This
creates substantial network operational improvements
and allows UPS to fly larger, more fuel-efficient aircraft.
• We began operating our new intra-Asia air hub in
Shenzhen, China, allowing us to better serve our
customers by reducing time in transit for hundreds of
city pairs in the region.
We also developed strategic alliances in Asia to further
strengthen the reach of our global network and expand our
service offerings.
UPS 2010 ANNUAL REPORT 03