Ups Annual Report 2010

UPS 2010 ANNUAL REPORT

STRONGER EVER

THAN

POSITIONED FOR

GROWTH

UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry, and a global leader in supply chain management.

UPS WEBSITES

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UPS 2010 ANNUAL REPORT

01

UPS offers time-definite delivery of letters, documents, and small packages via air and ground services to more than 220 countries and territories around the world. UPS Supply Chain Solutions® features forwarding and logistics services in 195 countries and territories. • Supply chain design and management • Domestic and international air freight • Ocean, rail, and ground freight • Transportation network management • Customs brokerage and mail services UPS Freight® provides long-haul truckload and less-than-truckload (LTL) freight services in the United States, Canada, Mexico, Guam, Puerto Rico, and the U.S. Virgin Islands.

Financial Highlights

(in millions except for per-share amounts)

Operating Highlights

2010 2009

• Achieved record level operating profit in

International and Supply Chain and Freight segments Generated $3.1 billion in free cash flow** after making more than $2 billion in discretionary pension contributions Invested for the future through new facilities, technology, vehicles, and aircraft Executed one of the largest restructuring efforts in company history Generated industry-leading operating margins in all segments of the company

Revenue Operating expenses Net income Adjusted net income* Diluted earnings per share

$49,545 $45,297 43,671 41,496 3,488 3,570 3.48 2,152 2,316 2.14 2.31 1.80

•

• • •

Adjusted diluted earnings per share* 3.56 Dividends declared per share Assets Long-term debt Shareowners’ equity Capital expenditures Cash and marketable securities 1.88

33,597 31,883...