Strong results across all segments

In 2000, we met the targets we set for 10 percent revenue growth and mid-teens growth in earnings. In fact, 2000 was a record year for the company in terms of revenue, operating profit, and earnings per share. We also grew market share for ground and air products, experienced strong growth in international export volume, and achieved significant growth in the non-package segment, including the area of logistics.

Total revenue jumped 10.1 percent to $29.8 billion, as compared to $27.1 billion in 1999. We realized a 15.5 percent increase in operating profit, ending the year at $4.5 billion. Net income rose 20.2 percent to $2.8 billion, excluding one-time investment gains and other non-recurring items in 2000, and a special tax charge that reduced 1999 net income. Diluted earnings per share, adjusted for these items, increased 16.7 percent to $2.38 from $2.04 in 1999.

Our concentrated attention on growing our business continues to pay off – daily delivery volume increased 5.4 percent over 1999. In 2000, UPS delivered an average of 13.6 million packages each day in over 200 countries and territories around the world. Export package volume grew more rapidly, increasing 21.5 percent over 1999’s total.

In 2001, we see UPS growing across all segments. We expect revenue to increase 8 to 10 percent, assuming a strengthening economy in the second half of the year, led by expected mid- to upper-teens growth in our international export operations. Our logistics business should prove to be the most significant growth driver in the non-package segment, with revenue increasing more than 40 percent and achieving profitability in the second half of 2001.