This document is United Airlines' 1998 annual report. It contains the following key information:
1) Jerry Greenwald, United's CEO, provides a letter addressing the challenges of 1998, including economic problems in Asia hurting revenues. However, United still had healthy profits of $1.3 billion due to preparedness and cost controls.
2) Greenwald discusses United's progress on its "Quality Flight Plan" over the past 5 years to improve customer satisfaction, fleet, financial position, and employee relations.
3) The report includes financial highlights and operating statistics for 1998, showing profits, passenger metrics, and fleet information. It also contains sections on corporate leadership and stockholder information.
This document is United Airlines' 1998 annual report. It contains the following key information:
1) Jerry Greenwald, United's CEO, provides a letter addressing the challenges of 1998, including economic problems in Asia hurting revenues. However, United still had healthy profits of $1.3 billion due to preparedness and cost controls.
2) Greenwald discusses United's progress on its "Quality Flight Plan" over the past 5 years to improve customer satisfaction, fleet, financial position, and employee relations.
3) The report includes financial highlights and operating statistics showing United's continued strong financial performance in 1998 despite challenges, as well as comments from passengers in seat 14D addressing improvements to United's fleet and customer experience
1) UAL Corporation reported significant losses in 2001 due to the impacts of September 11th terrorist attacks and the weak economy. UAL's losses totaled $2.1 billion for the year, with passenger revenues down 39% in the fourth quarter.
2) United Airlines operates a major domestic and international air transportation network, with hubs in Chicago, Denver, Los Angeles, San Francisco, and Washington D.C. It focuses on markets in North America, Pacific, Atlantic, and Latin America.
3) In response to the difficult financial conditions following 9/11, United undertook large schedule reductions and employee furloughs to reduce costs, while continuing efforts to strengthen revenues and customer service.
The document provides supplemental financial schedules for Occidental Petroleum for 4Q 2008, 4Q 2007, and full year 2008 and 2007. It shows reported net income and core results, with reconciling items between the two. Some key figures:
- 4Q 2008 reported net income was $443 million, core results were $957 million
- 4Q 2007 reported net income was $1,452 million, core results were $1,464 million
- Full year 2008 reported net income was $6,857 million, core results were $7,348 million
- Full year 2007 reported net income was $5,400 million, core results were $4,405 million
The Alcoa 1996 Annual Report provides the following information:
1) Alcoa's earnings in 1996 totaled $514.9 million with revenues of $13.1 billion and a return on equity of 11.6%. Before special charges, earnings were $637 million for a return on equity of 14.4%.
2) Over the past decade, Alcoa has made safety its top priority and has successfully reduced injury rates at its facilities around the world, demonstrating that continuous improvement is possible.
3) Alcoa has expanded its global operations over the past year through acquisitions and new contracts, and it aims to leverage its resources and technologies worldwide to remain the leader in the aluminum industry.
The document provides an overview of AES Corporation's financial results for the first quarter of 2006. Some key highlights include revenues increasing 13% to $3.013 billion compared to the same period in 2005, driven largely by higher prices and currency effects. Income before taxes and minority interest increased 68% to $633 million. Diluted earnings per share from continuing operations were $0.52 compared to $0.19 in the prior year. Segment results were positively impacted by higher demand and prices across most business lines.
- Advanced Micro Devices reported a net loss of $600 million for the quarter ended June 30, 2007, bringing the total net loss for the first half of 2007 to $1.211 billion.
- Revenue increased 11.9% compared to the previous quarter but the gross margin percentage declined from 28.1% to 33.5% due to higher costs.
- Research and development expenses increased 9.5% compared to the previous quarter as the company continued investing in new products.
The 2008 annual report summarizes Gannett Co.'s financial performance for the year and initiatives to transform the company. Operating revenues declined 9% to $6.8 billion due to economic challenges. Net income would have been $747 million without $8.4 billion in impairment charges, resulting in a reported net loss of $6.65 billion. The company continued investing in its digital strategy through acquisitions and partnerships. It also restructured operations to reduce costs and focus on revenue opportunities while delivering local news across multiple platforms. Gannett made progress in its transition despite economic headwinds.
capital one Printer Friendly Version of the Financial Supplementfinance13
This document provides quarterly and annual financial and statistical data for Capital One Financial Corporation for 2008 and Q4 2007. Some key highlights include:
- For Q4 2008, Capital One reported a net loss of $1.42 billion compared to net income of $226.6 million in Q4 2007. Revenue declined 38% annually and the company reported an ROA of -3.45%.
- On a managed basis, which includes securitized assets, Q4 2008 net loss was $1.42 billion, revenue declined 25% annually, and ROA was -2.70%.
- Asset quality deteriorated with the net charge-off rate rising to 4.98% in Q4 2008
This document is United Airlines' 1998 annual report. It contains the following key information:
1) Jerry Greenwald, United's CEO, provides a letter addressing the challenges of 1998, including economic problems in Asia hurting revenues. However, United still had healthy profits of $1.3 billion due to preparedness and cost controls.
2) Greenwald discusses United's progress on its "Quality Flight Plan" over the past 5 years to improve customer satisfaction, fleet, financial position, and employee relations.
3) The report includes financial highlights and operating statistics showing United's continued strong financial performance in 1998 despite challenges, as well as comments from passengers in seat 14D addressing improvements to United's fleet and customer experience
1) UAL Corporation reported significant losses in 2001 due to the impacts of September 11th terrorist attacks and the weak economy. UAL's losses totaled $2.1 billion for the year, with passenger revenues down 39% in the fourth quarter.
2) United Airlines operates a major domestic and international air transportation network, with hubs in Chicago, Denver, Los Angeles, San Francisco, and Washington D.C. It focuses on markets in North America, Pacific, Atlantic, and Latin America.
3) In response to the difficult financial conditions following 9/11, United undertook large schedule reductions and employee furloughs to reduce costs, while continuing efforts to strengthen revenues and customer service.
The document provides supplemental financial schedules for Occidental Petroleum for 4Q 2008, 4Q 2007, and full year 2008 and 2007. It shows reported net income and core results, with reconciling items between the two. Some key figures:
- 4Q 2008 reported net income was $443 million, core results were $957 million
- 4Q 2007 reported net income was $1,452 million, core results were $1,464 million
- Full year 2008 reported net income was $6,857 million, core results were $7,348 million
- Full year 2007 reported net income was $5,400 million, core results were $4,405 million
The Alcoa 1996 Annual Report provides the following information:
1) Alcoa's earnings in 1996 totaled $514.9 million with revenues of $13.1 billion and a return on equity of 11.6%. Before special charges, earnings were $637 million for a return on equity of 14.4%.
2) Over the past decade, Alcoa has made safety its top priority and has successfully reduced injury rates at its facilities around the world, demonstrating that continuous improvement is possible.
3) Alcoa has expanded its global operations over the past year through acquisitions and new contracts, and it aims to leverage its resources and technologies worldwide to remain the leader in the aluminum industry.
The document provides an overview of AES Corporation's financial results for the first quarter of 2006. Some key highlights include revenues increasing 13% to $3.013 billion compared to the same period in 2005, driven largely by higher prices and currency effects. Income before taxes and minority interest increased 68% to $633 million. Diluted earnings per share from continuing operations were $0.52 compared to $0.19 in the prior year. Segment results were positively impacted by higher demand and prices across most business lines.
- Advanced Micro Devices reported a net loss of $600 million for the quarter ended June 30, 2007, bringing the total net loss for the first half of 2007 to $1.211 billion.
- Revenue increased 11.9% compared to the previous quarter but the gross margin percentage declined from 28.1% to 33.5% due to higher costs.
- Research and development expenses increased 9.5% compared to the previous quarter as the company continued investing in new products.
The 2008 annual report summarizes Gannett Co.'s financial performance for the year and initiatives to transform the company. Operating revenues declined 9% to $6.8 billion due to economic challenges. Net income would have been $747 million without $8.4 billion in impairment charges, resulting in a reported net loss of $6.65 billion. The company continued investing in its digital strategy through acquisitions and partnerships. It also restructured operations to reduce costs and focus on revenue opportunities while delivering local news across multiple platforms. Gannett made progress in its transition despite economic headwinds.
capital one Printer Friendly Version of the Financial Supplementfinance13
This document provides quarterly and annual financial and statistical data for Capital One Financial Corporation for 2008 and Q4 2007. Some key highlights include:
- For Q4 2008, Capital One reported a net loss of $1.42 billion compared to net income of $226.6 million in Q4 2007. Revenue declined 38% annually and the company reported an ROA of -3.45%.
- On a managed basis, which includes securitized assets, Q4 2008 net loss was $1.42 billion, revenue declined 25% annually, and ROA was -2.70%.
- Asset quality deteriorated with the net charge-off rate rising to 4.98% in Q4 2008
The document provides an overview of Alcoa's 4th quarter 2008 financial results and outlook for 1st quarter 2009. Key points include:
- 4Q 2008 loss from continuing operations of $929 million or $1.16 per share due to restructuring and impairment charges of $708 million.
- Revenue declined 18% sequentially to $5.7 billion on lower metal prices and market deterioration.
- Cash from operations was $608 million and cash on hand was $762 million.
- 1Q 2009 outlook includes further price declines and production cuts due to weak market conditions across key end markets.
The document is the consolidated financial statements of The TJX Companies, Inc. for fiscal years 1998, 1997 and 1996. It shows that the company's net sales increased from $3.975 billion in 1996 to $6.689 billion in 1997 and $7.389 billion in 1998. Net income also increased each year, from $26.261 million in 1996 to $363.123 million in 1997 and $304.815 million in 1998. The majority of the company's sales and assets are from its off-price family apparel stores segment.
The document provides operating statistics for El Paso Corporation for the third quarter of 2006. It shows that consolidated net income was $135 million for the quarter. It also provides key financial data segmented by each of El Paso's business units, including pipelines, exploration and production, marketing and trading, power, and field services. The pipelines segment reported earnings before interest and taxes of $305 million for the quarter and throughput volumes on its major pipelines.
- Honeywell reported 12% sales growth and 5% organic growth for 2Q06, with segment profit up 22% and margins expanding 110 basis points.
- EPS grew 75% year-over-year, while free cash flow more than doubled to $786M.
- All business segments experienced sales growth except Transportation Systems, with Automation and Control Solutions and Specialty Materials posting particularly strong results.
- Honeywell raised full-year EPS guidance to $2.48-2.53 per share due to the strong 2Q performance and positive business outlook.
- The document reports financial results for Clorox for the third quarter and first nine months of fiscal year 2006 compared to the same periods in fiscal year 2005. Net sales increased 7% in the third quarter and 6% year-to-date. Earnings from continuing operations were $110 million for the third quarter and $301 million year-to-date.
This document provides forward-looking statements and non-GAAP financial information for Monsanto's investor day on November 10, 2005. It includes reconciliations of free cash flow, non-GAAP EPS, and return on capital for fiscal years 2004-2007. The document also notes that references to fiscal years refer to Monsanto's year ending August 31 and lists several of Monsanto's trademarks.
This statistical supplement from Ameriprise Financial provides key financial metrics and information for the first quarter of 2006 compared to previous periods. Some highlights include:
- Revenue increased 6% to $1.949 billion from the prior year period, while income before taxes was relatively flat.
- Adjusted earnings increased 17% to $189 million, excluding one-time items.
- Total client assets under management or administration grew 11% to $446 billion.
- The number of financial advisors was relatively unchanged at 12,339.
Big Lots reported financial results for fiscal year 2007 with net sales decreasing 1.8% to $4.656 billion. Income from continuing operations increased 28.8% to $145.08 million while earnings per share increased 39.6% to $1.41. Inventory turnover improved to 3.5 times from 3.4 times in 2006. Cash flow decreased to $249.17 million from $351.06 million in 2006 due to lower operating cash flow and higher capital expenditures.
Quest Diagnostics acquired SmithKline Beecham Clinical Laboratories in 1999, making it the clear leader in diagnostic testing in the US. Net income excluding special items was $41.2 million in 1999 compared to $26.9 million in 1998 due to the acquisition. However, after special items related to the acquisition, the company reported a net loss of $3.4 million. The company's strategy is focused on capitalizing on its position in diagnostic testing, becoming a leading provider of medical information by leveraging its large database of test results, and becoming recognized as the quality leader in healthcare services.
This document provides financial information for Ameriprise Financial, Inc. for the fourth quarter of 2006. It includes consolidated income statements, adjusted consolidated income statements, financial metrics, segment information, and explanatory notes. Some key figures include total revenues of $2.16 billion for Q4 2006, a 16% increase from Q4 2005. Net income was $171 million for Q4 2006, a 54% increase from Q4 2005. Adjusted earnings per share increased 34% to $1.03 for Q4 2006 compared to $0.77 for Q4 2005.
The document provides operating statistics for El Paso Corporation for the third quarter of 2007. It includes consolidated statements of income, operating results, and business segment results for the Pipelines, Exploration and Production, Marketing, and Power segments. Specifically, it shows that for the third quarter of 2007 the company reported net income of $155 million on operating revenues of $1.166 billion, with the Pipelines segment generating earnings before interest and taxes of $275 million and the Exploration and Production segment earning $232 million on that measure.
The document provides operating statistics and financial results for El Paso Corporation for the fourth quarter and full year of 2005. Some key details include:
- For the fourth quarter of 2005, El Paso reported a net loss of $162 million and a loss from continuing operations of $283 million.
- For the full year 2005, El Paso reported a net loss of $606 million and a loss from continuing operations of $702 million.
- El Paso reported earnings before interest and taxes of -$106 million for the fourth quarter and $398 million for the full year from its various business segments including pipelines, exploration and production, marketing and trading, power and field services.
Advanced Micro Devices reported a net loss of $611 million for the first quarter of 2007, with net revenue of $1.233 billion. The Computing Solutions segment experienced an operating loss of $321 million on $918 million in revenue. Research and development expenses were $432 million for the quarter. Adjusted EBITDA, which excludes certain one-time acquisition costs, was a loss of $196 million.
This document provides a statistical supplement with financial information for Ameriprise Financial, Inc. for the second quarter of 2006. It includes:
- Consolidated income statements and adjusted income statements excluding certain items
- Financial metrics and targets for revenue growth, earnings growth, and return on equity
- Information on managed assets, financial advisors, debt ratios, and other business metrics
- Segment income statements and selected financial details for the asset accumulation, protection, and corporate segments
The document contains financial summaries, income statements, business metrics, ratios and other key performance indicators to provide an overview of Ameriprise's financial performance and position in the second quarter of 2006.
This document provides a summary of UAL Corporation's performance in 2007 and 2008, as well as its strategies to address challenges from high fuel prices. Key points include:
1) 2007 was UAL's most profitable year since 1999, with over $1 billion in operating income. However, rising fuel costs have severely impacted financial performance in 2008.
2) UAL is taking actions like capacity reductions, raising new capital, developing new revenue streams, and increasing fuel hedging to address the fuel price crisis.
3) Looking ahead, UAL aims to strengthen its competitive position through cost cutting, operational improvements, investments in products/services, and expanding its partnership with Continental Airlines.
UAL Corporation reported financial results for the fourth quarter of 2008. Some key points:
- The company reported a pre-tax loss of $547 million excluding special items, and $1.3 billion including special items.
- Domestic passenger revenue per seat mile increased 6.7% year-over-year due to capacity reductions. International and regional passenger revenue per seat mile also increased.
- Non-fuel operating costs per seat mile increased only 1.6% year-over-year despite an 11.7% reduction in capacity, showing good cost control.
- The company raised $390 million in cash through financing activities and expects to raise an additional $350 million in early 2009 to
The document outlines United Airlines' investor day presentation from February 2008. It discusses United's strategic plan to strengthen its core airline business and create shareholder value over five years. United aims to be the global airline of choice for customers, employees, and investors. The presentation highlights United's network, capacity discipline, revenue management practices, and sales strategies. It provides financial results showing United has led the industry in capacity discipline and PRASM growth.
Merrill Lynch Global Transportation Conference Presentationfinance13
United Airlines' CFO presented at a transportation conference in June 2007. He discussed United's performance agenda to drive margin leadership through optimizing revenue and controlling costs while improving the customer experience. United has realized $135 million in cost savings in 2006 and aims to achieve $400 million total by 2007 through various initiatives. The CFO argued United's unit earnings and cash flow metrics compare favorably to competitors when adjusting for United's fresh start accounting and regional aircraft expenses. United can afford to wait for next-generation narrowbody aircraft while focusing on improving operations and financial performance.
The Sherwin-Williams Company 2002 Annual Report summarizes the company's financial performance for the year. It discusses the company's four business segments: Paint Stores (63.7% of sales), Consumer (22.7% of sales), Automotive Finishes (8.8% of sales), and International Coatings (4.7% of sales). It also highlights that net sales were $5.18 billion for 2002, income before accounting changes was $310.7 million, and net income was $127.6 million. The report indicates Sherwin-Williams has been a leading force in the coatings industry for 137 years.
The Sherwin-Williams Company 2002 Annual Report summarizes the company's financial performance for the year. It discusses the company's four business segments: Paint Stores (63.7% of sales), Consumer (22.7% of sales), Automotive Finishes (8.8% of sales), and International Coatings (4.7% of sales). It also highlights that net sales were $5.18 billion for 2002, income before accounting changes was $310.7 million, and return on sales was 6.0%.
The document provides an overview of Alcoa's 4th quarter 2008 financial results and outlook for 1st quarter 2009. Key points include:
- 4Q 2008 loss from continuing operations of $929 million or $1.16 per share due to restructuring and impairment charges of $708 million.
- Revenue declined 18% sequentially to $5.7 billion on lower metal prices and market deterioration.
- Cash from operations was $608 million and cash on hand was $762 million.
- 1Q 2009 outlook includes further price declines and production cuts due to weak market conditions across key end markets.
The document is the consolidated financial statements of The TJX Companies, Inc. for fiscal years 1998, 1997 and 1996. It shows that the company's net sales increased from $3.975 billion in 1996 to $6.689 billion in 1997 and $7.389 billion in 1998. Net income also increased each year, from $26.261 million in 1996 to $363.123 million in 1997 and $304.815 million in 1998. The majority of the company's sales and assets are from its off-price family apparel stores segment.
The document provides operating statistics for El Paso Corporation for the third quarter of 2006. It shows that consolidated net income was $135 million for the quarter. It also provides key financial data segmented by each of El Paso's business units, including pipelines, exploration and production, marketing and trading, power, and field services. The pipelines segment reported earnings before interest and taxes of $305 million for the quarter and throughput volumes on its major pipelines.
- Honeywell reported 12% sales growth and 5% organic growth for 2Q06, with segment profit up 22% and margins expanding 110 basis points.
- EPS grew 75% year-over-year, while free cash flow more than doubled to $786M.
- All business segments experienced sales growth except Transportation Systems, with Automation and Control Solutions and Specialty Materials posting particularly strong results.
- Honeywell raised full-year EPS guidance to $2.48-2.53 per share due to the strong 2Q performance and positive business outlook.
- The document reports financial results for Clorox for the third quarter and first nine months of fiscal year 2006 compared to the same periods in fiscal year 2005. Net sales increased 7% in the third quarter and 6% year-to-date. Earnings from continuing operations were $110 million for the third quarter and $301 million year-to-date.
This document provides forward-looking statements and non-GAAP financial information for Monsanto's investor day on November 10, 2005. It includes reconciliations of free cash flow, non-GAAP EPS, and return on capital for fiscal years 2004-2007. The document also notes that references to fiscal years refer to Monsanto's year ending August 31 and lists several of Monsanto's trademarks.
This statistical supplement from Ameriprise Financial provides key financial metrics and information for the first quarter of 2006 compared to previous periods. Some highlights include:
- Revenue increased 6% to $1.949 billion from the prior year period, while income before taxes was relatively flat.
- Adjusted earnings increased 17% to $189 million, excluding one-time items.
- Total client assets under management or administration grew 11% to $446 billion.
- The number of financial advisors was relatively unchanged at 12,339.
Big Lots reported financial results for fiscal year 2007 with net sales decreasing 1.8% to $4.656 billion. Income from continuing operations increased 28.8% to $145.08 million while earnings per share increased 39.6% to $1.41. Inventory turnover improved to 3.5 times from 3.4 times in 2006. Cash flow decreased to $249.17 million from $351.06 million in 2006 due to lower operating cash flow and higher capital expenditures.
Quest Diagnostics acquired SmithKline Beecham Clinical Laboratories in 1999, making it the clear leader in diagnostic testing in the US. Net income excluding special items was $41.2 million in 1999 compared to $26.9 million in 1998 due to the acquisition. However, after special items related to the acquisition, the company reported a net loss of $3.4 million. The company's strategy is focused on capitalizing on its position in diagnostic testing, becoming a leading provider of medical information by leveraging its large database of test results, and becoming recognized as the quality leader in healthcare services.
This document provides financial information for Ameriprise Financial, Inc. for the fourth quarter of 2006. It includes consolidated income statements, adjusted consolidated income statements, financial metrics, segment information, and explanatory notes. Some key figures include total revenues of $2.16 billion for Q4 2006, a 16% increase from Q4 2005. Net income was $171 million for Q4 2006, a 54% increase from Q4 2005. Adjusted earnings per share increased 34% to $1.03 for Q4 2006 compared to $0.77 for Q4 2005.
The document provides operating statistics for El Paso Corporation for the third quarter of 2007. It includes consolidated statements of income, operating results, and business segment results for the Pipelines, Exploration and Production, Marketing, and Power segments. Specifically, it shows that for the third quarter of 2007 the company reported net income of $155 million on operating revenues of $1.166 billion, with the Pipelines segment generating earnings before interest and taxes of $275 million and the Exploration and Production segment earning $232 million on that measure.
The document provides operating statistics and financial results for El Paso Corporation for the fourth quarter and full year of 2005. Some key details include:
- For the fourth quarter of 2005, El Paso reported a net loss of $162 million and a loss from continuing operations of $283 million.
- For the full year 2005, El Paso reported a net loss of $606 million and a loss from continuing operations of $702 million.
- El Paso reported earnings before interest and taxes of -$106 million for the fourth quarter and $398 million for the full year from its various business segments including pipelines, exploration and production, marketing and trading, power and field services.
Advanced Micro Devices reported a net loss of $611 million for the first quarter of 2007, with net revenue of $1.233 billion. The Computing Solutions segment experienced an operating loss of $321 million on $918 million in revenue. Research and development expenses were $432 million for the quarter. Adjusted EBITDA, which excludes certain one-time acquisition costs, was a loss of $196 million.
This document provides a statistical supplement with financial information for Ameriprise Financial, Inc. for the second quarter of 2006. It includes:
- Consolidated income statements and adjusted income statements excluding certain items
- Financial metrics and targets for revenue growth, earnings growth, and return on equity
- Information on managed assets, financial advisors, debt ratios, and other business metrics
- Segment income statements and selected financial details for the asset accumulation, protection, and corporate segments
The document contains financial summaries, income statements, business metrics, ratios and other key performance indicators to provide an overview of Ameriprise's financial performance and position in the second quarter of 2006.
This document provides a summary of UAL Corporation's performance in 2007 and 2008, as well as its strategies to address challenges from high fuel prices. Key points include:
1) 2007 was UAL's most profitable year since 1999, with over $1 billion in operating income. However, rising fuel costs have severely impacted financial performance in 2008.
2) UAL is taking actions like capacity reductions, raising new capital, developing new revenue streams, and increasing fuel hedging to address the fuel price crisis.
3) Looking ahead, UAL aims to strengthen its competitive position through cost cutting, operational improvements, investments in products/services, and expanding its partnership with Continental Airlines.
UAL Corporation reported financial results for the fourth quarter of 2008. Some key points:
- The company reported a pre-tax loss of $547 million excluding special items, and $1.3 billion including special items.
- Domestic passenger revenue per seat mile increased 6.7% year-over-year due to capacity reductions. International and regional passenger revenue per seat mile also increased.
- Non-fuel operating costs per seat mile increased only 1.6% year-over-year despite an 11.7% reduction in capacity, showing good cost control.
- The company raised $390 million in cash through financing activities and expects to raise an additional $350 million in early 2009 to
The document outlines United Airlines' investor day presentation from February 2008. It discusses United's strategic plan to strengthen its core airline business and create shareholder value over five years. United aims to be the global airline of choice for customers, employees, and investors. The presentation highlights United's network, capacity discipline, revenue management practices, and sales strategies. It provides financial results showing United has led the industry in capacity discipline and PRASM growth.
Merrill Lynch Global Transportation Conference Presentationfinance13
United Airlines' CFO presented at a transportation conference in June 2007. He discussed United's performance agenda to drive margin leadership through optimizing revenue and controlling costs while improving the customer experience. United has realized $135 million in cost savings in 2006 and aims to achieve $400 million total by 2007 through various initiatives. The CFO argued United's unit earnings and cash flow metrics compare favorably to competitors when adjusting for United's fresh start accounting and regional aircraft expenses. United can afford to wait for next-generation narrowbody aircraft while focusing on improving operations and financial performance.
The Sherwin-Williams Company 2002 Annual Report summarizes the company's financial performance for the year. It discusses the company's four business segments: Paint Stores (63.7% of sales), Consumer (22.7% of sales), Automotive Finishes (8.8% of sales), and International Coatings (4.7% of sales). It also highlights that net sales were $5.18 billion for 2002, income before accounting changes was $310.7 million, and net income was $127.6 million. The report indicates Sherwin-Williams has been a leading force in the coatings industry for 137 years.
The Sherwin-Williams Company 2002 Annual Report summarizes the company's financial performance for the year. It discusses the company's four business segments: Paint Stores (63.7% of sales), Consumer (22.7% of sales), Automotive Finishes (8.8% of sales), and International Coatings (4.7% of sales). It also highlights that net sales were $5.18 billion for 2002, income before accounting changes was $310.7 million, and return on sales was 6.0%.
This document provides quarterly financial data for Citigroup, including:
1) Income statements for Citigroup's major business segments broken down by product and region, showing revenues, expenses, profits.
2) Key metrics for Citigroup as a whole, including revenues, income, earnings per share, assets, equity.
3) Specific data on performance of Citigroup's Global Consumer credit card business, including revenues, expenses, profits, and effects of securitization activities.
The document provides consolidated financial statements for a company for the years 2005-2007. It shows that total revenues increased from $10.2 billion in 2005 to $13.6 billion in 2007. Net income decreased from $549 million in 2005 to a net loss of $95 million in 2007. Key line items include total revenues, operating expenses, income from continuing operations, and net income/loss for each year.
The document provides consolidated financial statements for a company for the years 2005-2007. It shows that total revenues increased from $10.2 billion in 2005 to $13.6 billion in 2007. Net income decreased from $549 million in 2005 to a net loss of $95 million in 2007. Key line items include total revenues, operating expenses, income from continuing operations, and net income/loss for each year.
The document provides consolidated financial statements for a company for the years 2005-2007. It shows revenues increasing each year from $10.2 billion in 2005 to $13.6 billion in 2007. Net income, however, decreased from $549 million in 2005 to a net loss of $95 million in 2007. The company operates both regulated and non-regulated businesses across Latin America, North America, and Europe/CIS/Africa regions.
This annual report summarizes Dole's financial performance from 1998-2002. It shows that while revenues have remained relatively steady, income from continuing operations increased substantially in 2002 after declining in 2001. Total shareholders' equity also increased steadily over this period. The report discusses Dole's continued focus on expanding its value-added packaged foods business and improving costs. It highlights new product introductions in fruit bowls and salad blends that have contributed to revenue growth. Messages from the Chairman and President emphasize their commitment to improving health and nutrition worldwide through Dole's products and the new Dole Nutrition Institute.
The Sherwin-Williams Company had a successful 2004, achieving over $6 billion in sales for the first time. Net income increased 18.4% to $393.3 million and diluted EPS rose over 20% to a record $2.72. All business segments saw sales increases, with the Paint Stores segment up 14.6% to $3.98 billion. The company continued its streak of 26 consecutive years of dividend growth and completed three acquisitions. Looking forward, rising raw material costs will continue to pressure margins but the company will work to offset this through productivity gains and price increases.
The Sherwin-Williams Company had a successful 2004 fiscal year. Net sales increased over 12% to over $6 billion, a new record. Net income grew 18.4% to $393.3 million. The company achieved double-digit revenue and volume growth despite challenges from rising raw material costs. The company paid dividends of $0.68 per share, acquired three companies, invested in capital expenditures, and repurchased over 6.5 million shares. All four of its business segments saw sales increases, with the Paint Stores and Automotive Finishes segments experiencing the strongest growth.
The document provides operating statistics for El Paso Corporation for the fourth quarter of 2008. It includes consolidated statements of income, operating results, and business segment results for Pipelines, Exploration and Production, Marketing, Power, and Corporate/Other. Key details include a net loss of $1.68 billion for Q4 2008 driven by $2.66 billion in ceiling test charges in Exploration and Production. Pipelines contributed operating income of $291 million in Q4. Exploration and Production had an operating loss of $2.39 billion in Q4 due to the ceiling test charges.
el paso 22758BEF-CBE8-4368-BDC6-D02434EE5C13_EP_4Q08OpStatsFinalfinance49
The document provides operating statistics for El Paso Corporation for the fourth quarter of 2008. It includes consolidated statements of income, operating results, and business segment results for Pipelines, Exploration and Production, Marketing, Power, and Corporate/Other. Key details include a net loss of $1.68 billion for Q4 2008 driven by $2.66 billion in ceiling test charges in Exploration and Production. Pipelines generated $319 million in EBIT for Q4. Exploration and Production had an EBIT loss of $2.53 billion for the quarter due to the ceiling test charges.
el paso 22758BEF-CBE8-4368-BDC6-D02434EE5C13_EP_4Q08OpStatsFinalfinance49
The document provides operating statistics for El Paso Corporation for the fourth quarter of 2008. It includes consolidated statements of income, operating results, and business segment results for Pipelines, Exploration and Production, Marketing, Power, and Corporate/Other. Key details include a net loss of $1.68 billion for Q4 2008 driven by $2.66 billion in ceiling test charges in Exploration and Production. Pipelines EBIT was $319 million for Q4. Exploration and Production had an EBIT loss of $2.526 billion for the quarter due to the ceiling test charges.
Constellation Energy's 2007 annual report discusses its commitment to responsible leadership. The report outlines how the company meets the energy needs of customers through innovative solutions, creates partnerships within communities, and delivers value to shareholders while protecting the environment. It highlights initiatives such as demand response programs, energy efficiency tools, renewable energy projects, and efforts to reduce emissions from power plants. The report emphasizes the company's responsibility to consider the needs of investors, customers, employees, communities, and the environment in its business decisions.
- Advanced Micro Devices reported a net loss of $600 million for the quarter ended June 30, 2007, bringing the total net loss for the first half of 2007 to $1.211 billion.
- Revenue increased 11.9% compared to the previous quarter but the gross margin percentage declined from 28.1% to 33.5% due to higher costs.
- Research and development expenses increased 9.5% compared to the previous quarter as the company continued investing in new products.
United Health Group Consolidated Financial Statementsfinance3
UnitedHealth Group reported strong financial results in 2001 with record revenues of $23.5 billion, up 11% from 2000. Net earnings reached a record $913 million, up 30% from 2000. All business segments experienced revenue and earnings growth. The consolidated operating margin increased to 6.7% due to productivity gains and a shift to higher-margin fee-based products. Return on shareholders' equity improved to 24.5% from 19.0% in 2000, demonstrating superior performance.
- AMD reported a net loss of $67 million for Q3 2008 and $1.6 billion for the first 9 months of 2008 due to losses from discontinued operations related to its memory chip business Spansion. Revenue increased 14% in Q3 2008 compared to Q3 2007 but gross margin percentage increased from 41% to 51%.
- Total assets decreased from $11.55 billion as of December 2007 to $9.49 billion as of September 2008 mainly due to assets transferred from discontinued operations to liabilities held for sale. Cash and marketable securities decreased from $1.89 billion to $1.34 billion over the same period.
Dole Food Company's annual report discusses its commitment to providing safe, high quality food products while protecting the environment. It highlights that Dole focuses on growing its core food businesses globally through expansion, joint ventures, and maximizing returns by downsizing non-profitable operations. The report also discusses Dole's efforts in nutrition education to encourage healthy lifestyles and consumption of fruits and vegetables.
The annual report summarizes Dole Food Company's operations and financial performance in 1995. Some key points:
- Dole successfully separated its real estate and resorts business into a new publicly-traded company, Castle & Cooke, enhancing shareholder value.
- Dole's food business saw revenue grow 14% to $3.8 billion in 1995. Operating income increased 40% to $193 million due to improved performance across banana, vegetable, and pineapple operations.
- Dole expanded its value-added salad business in Europe and entered new joint ventures and acquisitions to grow in European markets.
- Financially, Dole paid down over $700 million in debt,
This document summarizes the financial performance of a company for the third quarter and first six months of 2005 compared to the same periods in 2004. It shows that net sales increased 6% for both periods while earnings from continuing operations decreased 38% and 24% respectively due to higher costs. The household products division grew sales and earnings both periods, while other divisions saw mixed results.
- Fluor completed strategic actions in 2001 to exit from non-core businesses and refocus fully on its core competencies of engineering, procurement, construction and maintenance. This allowed Fluor to concentrate resources on increasing opportunities in these areas.
- Earnings from continuing operations increased 23% to $143.0 million in 2001, despite difficult market conditions, indicating Fluor is achieving its goal of sustainable long-term earnings growth.
- While Fluor's stock price experienced volatility in 2001, the company remains well positioned for future growth due to its leading capabilities and experience, strong financial position, and expectation that the market for its services is in an early upcycle that will continue for 3-5 years.
capital oneCapital One Financial Corp. Shareholders Meeting Presentationfinance13
The annual stockholder meeting document discusses Capital One's performance in 2007 and the challenges facing the banking industry. It notes that 2007 was the first year Capital One saw a decline in earnings per share. It also discusses the housing market correction and its prolonged negative impact. Additionally, it provides context on Capital One's deposit size, making it the 13th largest deposit-taking bank in the US.
capital oneLehman Brothers Eleventh Annual Lehman Financial Services Conferen...finance13
- Capital One is a top 10 bank and 14th largest depository institution in the US with $87.6B in deposits as of Q4 2007. It is also the 5th largest credit card issuer.
- Capital One is a diversified bank that is now primarily funded by deposits, with deposits comprising 47% of its managed liabilities as of Q4 2007, compared to other major banks that are more reliant on unsecured debt and securitizations.
- The presentation discusses Capital One's business overview, competitive positioning, and funding sources. Forward-looking statements are provided but subject to various risk factors that could cause actual results to differ materially.
capital oneSanford C. Bernstein & Co. Strategic Decisions Conference Presenta...finance13
This document discusses Capital One's approach to risk management and positioning for economic cycles. It notes that Capital One has transformed into a diversified bank with significant deposit funding. Capital One assumes recessions and degradation in underwriting and saves repricing for safety and soundness rather than assuming good times will continue. The document also discusses how different lending segments such as credit cards have performed relative to others such as auto loans during past economic downturns.
capital one Keefe, Bruyette & Woods, Inc. Diversified Financial Services Conf...finance13
Capital One is a top 10 bank and 5th largest credit card issuer. It has seen weakening credit metrics that reflect the deteriorating US economy. The company increased its loan loss allowance by $310M in Q108 to prepare for expected losses. While credit costs rose, increased revenue margins largely offset the impact. Capital One continues efficiency initiatives and managing its balance sheet to sustain profitability despite credit headwinds.
capital one Q2 2008 Capital One Financial Earnings Conference Call Presentationfinance13
Capital One reported second quarter 2008 results. Diluted EPS from continuing operations was $1.24, down from the prior quarter and year due to higher provision expense and lower revenue. Credit performance was largely in line with expectations, with managed charge-offs at 4.15% and delinquencies at 3.56%. Tighter underwriting led to portfolio contraction. The balance sheet remains strong with increased deposits and liquidity.
capital one Lehman Conference Presentationfinance13
Capital One provides a presentation on its financial performance and positioning. It discusses (1) executing on its vision of national lending and local banking, (2) delivering an operating profit of $463M despite significant credit headwinds, and (3) decisions that position it to navigate cyclical challenges and deliver value over the cycle through resilient businesses, conservative risk management, and lower lending lines.
capital one Q3 2008 Capital One Financial Earnings Conference Call Presentationfinance13
Capital One reported third quarter 2008 results with the following highlights:
1) Diluted EPS from continuing operations was $1.03, down from $1.21 in the third quarter of 2007 driven by higher provision expense.
2) Credit performance was largely in line with expectations, with managed charge-off and delinquency rates up from the previous quarter.
3) The balance sheet and diversified funding remained strong, with available liquidity of $32 billion and deposit growth of $6 billion from the previous quarter.
capital one Capital One Acquisition of Chevy Chase Bankfinance13
Capital One announced the acquisition of Chevy Chase Bank for $520 million. Chevy Chase has $11.6 billion in deposits and is the #1 bank in the Washington D.C. market. The acquisition enhances Capital One's local banking business and deposit funding. It is expected to be financially attractive with an estimated 13% internal rate of return and accretion to earnings per share in 2009 and 2010. Capital One took a $1.75 billion net credit mark on Chevy Chase's loans to mitigate credit risks.
capital one Printer Friendly Version of the Press Releasefinance13
Capital One reported a net loss for 2008 due to a large goodwill impairment in its Auto Finance business. It added $1 billion to loan loss reserves due to expectations of increasing losses. Credit performance deteriorated in the fourth quarter as the recession deepened. Deposits grew over 30% from the previous year and 10% in the last quarter.
capital onePrinter Friendly Version of the Conference Call Presentationfinance13
- Fourth quarter 2008 results showed a loss due to higher provision expense and a goodwill write-down. The losses were driven by deterioration in credit performance as economic conditions worsened.
- Credit losses and delinquency rates increased across all lending segments as unemployment rose. The allowance for loan losses was increased substantially.
- Deposits grew significantly while margins declined due to credit costs and mix shift to lower-yielding assets. Expenses declined due to cost management efforts.
- An impairment charge was taken for goodwill in the Auto Finance segment. The balance sheet and liquidity remain strong despite the difficult environment.
This document is Capital One's 1996 Annual Report. It summarizes that in 1996, Capital One achieved record financial results including net income increasing 23% to $155.3 million and managed loans increasing 23% to $12.8 billion. Capital One's success is driven by its proprietary information-based strategy which allows it to customize products, manage risk conservatively, and continuously innovate. The company added nearly 2,000 employees in 1996 and remains focused on testing new products.
Capital One had a remarkable year in 1997, setting records for financial and operating performance. They added 3.2 million new customers, ending the year with 11.7 million accounts. Capital One's success demonstrates the power of their information-based strategy and innovation. Going forward, they see opportunity for continued growth in the US and internationally by applying their strategy of mass customization.
Capital One Financial Corporation's 1998 Annual Report summarizes the company's strong financial performance in 1998. Capital One saw record growth across key metrics such as earnings per share, revenue, managed loans, and number of customer accounts. The company achieved net income of $275 million, a 45% increase over 1997. Capital One's success is powered by its Information-Based Strategy of using technology, data analysis, and scientific testing to customize financial products for each customer. This strategy has allowed the company to rapidly innovate and gain market share in the credit card industry.
Capital One Financial Corporation's 1999 Annual Report highlights the company's explosive growth over the past 5 years since its IPO, including doubling its customer base to 24 million and increasing revenues 512% between 1994 and 1999. The report discusses Capital One's continued focus on its information-based strategy of testing new ideas, customizing products for customers, and driving innovation to build one of the world's truly great companies with sustained financial performance and customer satisfaction. Key metrics show earnings per share and return on equity growth above 20% for the fifth consecutive year.
This annual report summarizes Capital One's growth and success in 2000. Some key points:
- Capital One has grown rapidly since its IPO in 1994, becoming one of the fastest growing and most profitable companies in the US.
- Through its proprietary information-based strategy (IBS), Capital One has created innovative credit card and loan products tailored to individual customers, reducing risk while delivering value.
- In 2000, Capital One added a record 10 million new customers, conducted over 45,000 tests of new ideas, and invested over $900 million in marketing.
- Capital One aims to continue its strong growth by expanding its product lines and customer base internationally, and by building its brand through advertising and
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Mutual Fund Taxation – How Mutual Funds Are Taxeddhvikdiva
Divadhvik explains Mutual Fund Taxation clearly: Equity funds held over a year are taxed at 10% for gains over ₹1 lakh, while short-term gains are taxed at 15%. Debt funds held over three years are taxed at 20% post-indexation. Short-term gains are taxed as per your income slab.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
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The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
2. The view from United – a letter to owners and employees 2
The view from 14D 6
Fleet facts 24
Route maps 25
Financial review 31
Directors and officers 44
Stockholder information 46
3. UAL CORPORATION 1998
Financial Highlights and Operating Statistics
Year ended December 31
In millions, except per share, rates and aircraft 1998 1997 1996
Financial highlights – Operating revenues $ 17,561 $ 17,378 $ 16,362
generally accepted Operating expenses $ 16,083 $ 16,119 $ 15,239
accounting principles
Earnings from operations $ 1,478 $ 1,259 $ 1,123
basis
Earnings before extraordinary item $ 821 $ 958 $ 600
Net earnings $ 821 $ 949 $ 533
Per share, diluted:
Earnings before preferred stock transactions,
gains on sales and extraordinary item $ 6.83 $ 6.64 $ 6.42
Gains on sales of ATS/Galileo, net(1) – 2.40 –
Preferred stock transactions, net – – (0.57)
Extraordinary loss, net – (0.09) (0.79)
Net earnings $ 6.83 $ 8.95 $ 5.06
Average number of common shares assumed outstanding 105.2 97.4 84.6
Financial highlights – Operating revenues $ 17,561 $ 17,378 $ 16,362
pro forma fully Operating expenses $ 15,254 $ 15,132 $ 14,554
distributed basis(2)
Earnings from operations $ 2,307 $ 2,246 $ 1,808
Earnings before extraordinary item $ 1,308 $ 1,555 $ 1,027
Net earnings $ 1,308 $ 1,546 $ 960
Per share, diluted:
Earnings before preferred stock transactions,
gains on sales and extraordinary item $ 10.24 $ 9.97 $ 7.71
Gains on sales of ATS/Galileo, net(1) – 1.79 –
Preferred stock transactions, net – – (0.37)
Extraordinary loss, net – (0.07) (0.51)
Net earnings $ 10.24 $ 11.69 $ 6.83
Average number of common shares assumed outstanding 126.8 131.4 131.1
United Airlines Revenue passengers 87 84 82
operating statistics Revenue passenger miles 124,609 121,426 116,697
Available seat miles 174,008 169,110 162,843
Passenger load factor – system 71.6% 71.8% 71.7%
Domestic 71.8% 71.2% 70.6%
Pacific 71.5% 71.6% 73.6%
Atlantic 76.3% 78.9% 78.8%
Latin America 60.5% 65.3% 63.7%
Breakeven passenger load factor 64.9% 66.0% 66.0%
Breakeven passenger load factor excluding ESOP charges 61.0% 61.4% 62.6%
Passenger revenue per passenger mile (yield) 12.36¢ 12.55¢ 12.35¢
Operating revenue per available seat mile 10.07¢ 10.25¢ 10.02¢
Operating expenses per available seat mile 9.24¢ 9.53¢ 9.33¢
Operating expenses excluding ESOP charges per available seat mile 8.76¢ 8.94¢ 8.91¢
Revenue ton miles 15,424 15,004 14,057
Cargo ton miles 2,963 2,862 2,387
Available ton miles 26,390 24,940 23,404
Average price per gallon of jet fuel 59.0¢ 69.5¢ 72.2¢
Gallons of jet fuel consumed 3,029 2,964 2,883
Number of aircraft in operating fleet at end of year 577 575 564
Average age of aircraft in years at end of year 9.8 10.8 10.9
See page 40, Note 6, for further details.
(1)
See page 31 for further explanation of the methodology.
(2)
1
4. UAL CORPORATION 1998
The View from United
Jerry Greenwald speaks to owners and employees
I
nicely, but strong markets attract competitors.
t was just five years ago that I joined
We saw more flights and seats come into
United, and we began to rebuild this
the market during the year. Third, the U.S.
company as a majority employee-owned
market remained very solid. However, the
airline. It was a project, some said, that was
continuing threat of the slowdown that never
bound to fail. We didn’t fail.
happened was enough to constrain demand
In fact, our success in most areas has been in the fourth quarter.
spectacular. As I prepare to leave United, I
Still, even in this less-than-ideal environment,
can look back and look ahead – and enjoy
we produced a healthy profit of $1.3 billion
the view from both directions.
and set a new record for earnings per share,
both on a fully distributed basis. Our margins
We have gone from tough times to a place
also held up well. We remained at number
among the top performers in the business.
three out of our 18 global peers, showing that
We are heading into a new millennium of
our cost-containment and productivity efforts
flight under full power.
are working.
1998 was not an easy year, but for
How does a bad environment end up as a
great year? Preparation. There was a time
United, it was a very positive one.
when a year like 1998 would have grounded
our performance. But this time we were ready
Tough year, good year
with a two-point response. We quickly real-
Our strength was evident in our performance
located capacity from weak markets to strong
in 1998. It was not an easy year, but for
ones, and we tightened our cost controls.
United, it was a very positive year. That is
because we are a company that is much
Faced with a dramatic change in key markets,
better able to withstand changes in the envi-
we didn’t have to rebuild the engine. We
ronment than the United of old – a company
shifted gears.
that was weighted down with over-capacity
and caught up in a series of running skir-
Following the Quality Flight Plan
mishes with its own employees.
Because we were able to handle the short
term in 1998, we never took our eyes off the
Three major factors shaped the year.
long term. For five years, we’ve had one goal:
to make United the airline of choice world-
One was the Far East. The much-discussed
wide. And for five years, we’ve been guided
economic problems there hurt revenues –
toward that goal by our Quality Flight Plan.
particularly in the important Japanese
The five-year milestone is a good time for
market. During the year, we also signed a
an update on the four points of that plan:
bilateral agreement with Japan, which should
customer satisfaction, fleet, balance sheet
be a tremendous benefit going forward. But
and United people.
in 1998, it increased competition in an
already weak market.
Customers: The comments from the passengers
in 14D illustrate what a lot of our customers
Another issue was our trans-Atlantic and
are telling us – that they’re starting to see the
Latin American markets. Volume was up
2
5. UAL CORPORATION 1998
a real effort to renew trust. The transition has
results of our more than half-a-billion dollar
been painful at times. But we’ve kept at it,
investment in in-flight comfort, technology,
and I believe we’re succeeding.
food and entertainment. They are also seeing
check-in, baggage claim and other improve-
When our customer service and reservations
ments on the ground.
employees voted this year to be represented
by the International Association of Machinists
Three airlines announced they’ll be joining our
and Aerospace Workers (IAM), we supported
Star Alliance in 1999 – All Nippon Airways,
their decision. We’re working with the IAM
Air New Zealand and Ansett Australia – which
toward completing a new contract on time. We
will give us alliance partners covering all
also made a joint announcement with the Air
regions of the world. From the perspective
Line Pilots Association (ALPA) that we are
of customer convenience and comfort, nine
starting negotiations ahead of schedule on a
airlines now will act in concert. We’ve formed
new contract for our pilots. We’re going into
a shared frequent-flier program with Delta,
the negotiations with a common objective: to
giving our customers one of the most popular
avoid a process that is drawn out, fought in
alliance benefits.
the media and that damages the cooperation
we have achieved to date. The issues will not
We have also been working quietly and effec-
be any easier, but the approach certainly
tively to make sure that we are Year 2000
gives us a running start.
ready. Our readiness program is on schedule,
and our first critical operations test – reserva-
Balance Sheet: Coming out of the early 1990s
tions – came off in February without a hitch.
with a weakened balance sheet, one of our
most important priorities was to strengthen
Fleet: As several of our 14D customers
our financial base. Four years of strong earn-
observed, United has one of the best fleets
ings coupled with successful cost controls –
of aircraft in the industry. Our Retire-and-
helped by declining fuel costs – have built a
Replace program, launched in 1996, is
balance sheet that gives us options. We are
upgrading our equipment without letting our going into 1999 with our strongest balance
assets get ahead of demand. As of year-end sheet in years. During the year, our board of
1998, we have replaced 70 percent of our directors voted to repurchase $500 million
older aircraft and have another 14 percent of our common stock, and we completed the
scheduled for replacement in 1999. The buyback earlier this year. We will continue
beauty of our approach is flexibility. We are to consider share repurchases, depending on
adding capacity when and where we need it. the price of our stock and the strength of our
balance sheet.
People: If you want to understand the differ-
ence between the old United and the new, you
The past five years have been
might look at the relationship between the com-
pany and its employees. Creating a majority
very good for United.
employee-owned airline under the Employee
Stock Ownership Plan (ESOP) did not mean
labor issues evaporated. Reaching the more A long way in five years
effective, more collaborative climate we have The past five years have been very good for
today has taken hard work on both sides of United Airlines – good for the people of this
the bargaining table. It took new attitudes, company, good for our shareholders, and good
new programs to break down old barriers and for our customers.
3
6. UAL CORPORATION 1998
We’ve created a stable employer with excellent Together, we have all created something
prospects for continued growth. We’ve created special here. We are now looking for someone
value for our shareholders with one of the best to succeed me, someone who can take our
stock price performances in the industry. We’ve creation to the next level. Believe me, we will
created an airline that listens to its customers, find exactly the right person – someone who
and then invests the money and commits to knows how to run an airline, but also under-
deliver on what they have told us. We have stands that working at United has come to
more to do on that front – but I believe the mean far more than the sum total of our em-
job is well under way and producing results. ployment policies and management practices.
Working at United means being United –
Guided by our Quality Flight Plan, I believe together creating something new and better
we are on track toward another strong year in every day for our customers and employees.
1999. We are in a position to reap the benefits
if the international economy cooperates, but we I’ll close this letter with a few words of grati-
will continue to adjust if it does not. The U.S. tude, although my thoughts of appreciation
market looks very solid. And our productivity could fill many pages. First, I want to thank
programs and low fuel prices should continue my wife, Glenda, and my family. Their love
to deliver excellent cost containment. and support have given me the freedom to
imagine – and achieve – my dreams.
That’s not to say we don’t have challenges
longer term. The economy is always a question I want to thank the millions of customers
mark. Competitors are always a threat. New who, day after day, trust United with their
negotiations are always looming. And service own families and their own dreams. Without
improvement is always a race with no finish them, none of us would be here today.
line. We also must look ahead to the end of
the ESOP stock allocation period and the I want to thank the board of directors and our
pay-scale changes that will result – along with shareholders. They believed in the promise of
the employees’ decision on whether there will a new kind of airline and backed that belief
be an ESOP II. But I believe the company we with their talents and resources.
have built can meet those issues head on, get
past them, and create new growth and value. And, finally, I want to thank the 95,000
people of United Airlines. It is their talent,
Thank you their spirit and their dedication – to every
As for my personal comment on the past five customer every day in every city we serve –
years – this has been the job of a lifetime. that truly makes United soar.
As I approach my retirement from United, I
know the full meaning of mixed emotions. I It’s been an amazing five years at a truly
feel privileged to have worked with the finest great company. Thanks for the chance to be
group of people in any industry. A real high- a part of it.
light has been the chance to work with a
top-flight leadership team – people like John Sincerely,
Edwardson, who left United in 1998, and Jim
Goodwin, the seasoned industry and United
veteran who replaced him. Our union leader-
ship also is an important part of the team, and
Jerry Greenwald
I appreciate their help in guiding our company
Chairman and Chief Executive Officer
and their willingness to rethink traditional
union-management relationships. March 1, 1999
4
7.
8. TheView from14D
What’s the view really like from seat 14D? Well, that all depends…
Y
ou may have seen our annual report last year. If you did,
you probably noticed that it was different. Not the usual
graphs and tables. Not the usual hyperbole. We took a dif-
ferent approach. We published letters . . . actual letters from our
customers and employees. They told us what they thought about
United. And we responded. We also explained what we’d done
during the year to iron out some of the wrinkles they mentioned
and to build on the things they liked.
This year, instead of waiting for customers to come to us, we went to
them. We wanted to see the travel experience through their eyes.
What the view was like from, say, seat 14D on a Boeing 777.
So we hired an independent interviewer. He did a lot of flying on
United and a lot of listening. He asked our customers just what they
thought of us and how we were doing. We chose seat 14D on the
B777 because it’s in United BusinessSM. And United Business
customers fly us a lot. They know us well.
As we expected, they had a lot to say. You’ll see some of their
comments on the following pages, both the good and the bad. And,
like last year, we’ll let you know what we’ve been doing this past
year and how it all comes together to fit in with our overall
strategic plan.
Yes, our approach is different. It’s frank and it’s open. It involves
our customers. It reflects the new way we’re doing business, what
we call our Customer Satisfaction Philosophy. It’s one of the changes
we’ve made since we became a majority employee-owned company
almost five years ago.
We adopted the Customer Satisfaction Philosophy, or CSP for short,
in 1996 to help us in our vision of making United the airline of
choice worldwide. The CSP is not a short-term cure-all. It’s a
fundamental principle that guides us in all our decisions.
It’s very basic, really. Start with customers. Ask them what makes
an airline great. Listen to their answers. Build on what they say.
Make United an airline customers worldwide will choose. Yes, a
simple concept, but one that takes a lot of work to make fly.
To see if our work is paying off, read on, and get the view from 14D.
6
9. How are we doing? We think pretty well. But what about our customers? What do they think?
Candid feedback from those who know us well:
We decided to find out. We decided to get the perspective on United from, say, seat 14D on one of our B777s. So we boarded a lot of flights, sat
down in 14E and asked the passengers in 14D to tell us what the view was like. They fly us often. They know us well. On the following pages,
you’ll meet some of them and see who they are. You’ll see what they think of us and what some of the others in 14D said, too. See for yourself if
they think we’re making progress. Read on and get the view from 14D . . . and from United.
Our Customer
Satisfaction
Philosophy:
• Candor and
responsibility
• Unsurpassed global
access
• Recognizing and
rewarding loyalty
• A simpler, more
hassle-free travel
experience
• Comfort the
foundation;
enjoyment the ideal
• Warmth and
genuine attentiveness
to each traveler’s
needs
7
10. UAL CORPORATION 1998
passengers on this aircraft can therefore give us
Improving our product
a good idea of how our customers are responding
W
e chose to interview customers flying to our improvements.
in our B777. Why? Because it serves
Quality Flight Plan:
both U.S. domestic and international Improvements such as our upgraded seats. These
Improve our product
q
markets. It flies both short distances – such as new United Business seats, which we rolled out
and service
our Chicago-Dulles service – and longer dis- in 1997, are now in place in 69 of our aircraft.
Upgrade our fleet
q
tances – such as our San Francisco-London As you can see, Mr. Reiman likes the seats –
Empower our people
q
Strengthen our
q
service. And it’s one of our newer aircraft. as do many of our customers – and with good
balance sheet
reason. From the back support system to the
Since its introduction in 1995, the B777 has individual reading lamps to the 12-inch recline,
become one of our customers’ favorite aircraft. the seats make the trip a much more comfortable
It also boasts many of the product enhance- experience. And they make it a more enjoyable
ments we’ve been working on. Feedback from one as well. Our “distributed video system”
gives customers the choice of programming on
10 video channels – and one of these channels
“United has the best seats has our ever-popular moving map, “Air Show.”
Speaking of entertainment, we upgraded the
of all the airlines. This seat entertainment systems on our B777 and B767
international aircraft in 1998 as well. And we’re
does a million things – when planning to add more entertainment and comfort
features to our B747s, too.
you sit on long flights, a Improved seats are not limited to our United
Business cabins. We’re upgrading the seats in all
back massage really helps.” classes on most aircraft and are on track here as
well, with 43 percent of the new seats in place.
Scott Reiman, UA 296
Comfort, however, isn’t just about the seat. The
quality of the cabin air makes a real difference.
That’s why we installed air-conditioning filters
“The food has gotten better in every one of our planes that use recirculated
air – the only commercial airline in the world
on international flights. to do so. These filters meet the “true HEPA”
standard, which is widely recognized as the
United has some Chinese highest possible standard for air quality.
And as for that other part of the inflight experi-
cook trying different ence . . . the food . . . well, we have to admit that
the view from 14D definitely told us that we are
dishes. They’re really pleasing a lot of palates.
good. You don’t think of Together, our onboard improvements represent an
overall investment of $567 million – with $171
million of that spent already. That’s a big invest-
airline food being all that ment. And we think it’s money well invested. Our
customers have told us that comfort matters to
great, but it is.” Scott Reiman, UA 296 them. So it matters to us.
8
11. P.Longbottom,14D
Flight 925, London to Washington D.C.
Penelope Longbottom is Ms. Longbottom was impressed English ties: Born in England, Ms. Longbottom has
“What’s this here for?”:
vice president of when a first-class customer service representative offered to spent most of her life in the United States but now lives
Communications and check in two confused economy passengers. in London. She frequently flies back and forth between
Administration for the two countries.
Lockheed Martin
Intersputnik, an inter-
national global satellite
network consortium.
Though her operation is
based in London, she
often flies to the consor-
tium’s headquarters
near Washington, D.C.
“I haven’t had roast
Almost unbelievably good:
potatoes done this well even in restaurants. These are
An elite member of
roast potatoes like Mother used to make. I’m serious!”
another airline’s
frequent-flier program,
Ms. Longbottom had to
switch to United seven
months ago when she
took a new job. “You
accrue a sense of loyal-
ty to an airline based
on rewards as well as
performance. I didn’t
want to make this tran- My airline is United: “Coming to a new airline is like the tentative beginnings of a new friendship. There’s a cul-
sition, but my experi- ture and an energy about everything in life, and airlines are no exception. I was resistant – I wasn’t sure I wanted
ence at United has to make room in my life for a new friend. I came to United reluctantly.” But Ms. Longbottom is now glad she had
really won me over.” to make the switch –“My experience at United has really won me over.”
“Check-in today was so
smooth I wondered if it
was the right day and
right place. But what
really impressed me was
when two confused
economy passengers
came to the counter
asking, ‘What’s this car-
pet here for?’ ‘This is
first-class check-in,’
replied the agent. When
they started to leave,
she said: ‘But I’d be
happy to help you!’ ”
9
12. S.Micheletti,14D
Flight 145, Chicago to San Francisco
Steve Micheletti is a
Kid-friendly: “I often fly United has won over Mr. Micheletti with the B777. “I make my
Jackpot!
national account man-
with my kids. United’s flights based on the planes. I’d much rather have a 777 than a smaller
ager for Levi Strauss.
flight attendants are nice plane. It has higher ceilings, bigger storage space, bigger seats, and a large
Based in Chicago, he
to them and understand business class section that gives me a better chance to get an upgrade.”
flies frequently to Levi
how kids are.”
Strauss’ headquarters
in San Francisco.
“I came to Chicago
three-and-a-half years
ago. I flew a little bit
on each airline looking
at their service. The
service was much better
on United – from the
person at the gate
checking me in to the
flight attendants on the
plane. I felt like United
Airlines wanted me to
come with them.”
“The Mileage Plus
group is very helpful.
They work to change
flights to better fit my
Thanks to the Mileage Plus desk, Mr. An account manager for Levi Strauss,
Time to play: Jeans bound:
schedule. I’ll call and
Micheletti can spend more time on his soccer coaching. Mr. Micheletti is often winging his way to the
ask them to get me
company’s San Francisco headquarters via United.
home earlier. By the
time I get to the air-
port, it’s done. Getting
on one-and-a-half
hours earlier gives me
one-and-a-half hours
more with my family –
it improves my life. I
can spend a little
extra time on my
soccer coaching.”
“I like that United’s
tied in with Taste of
“Your pilots are organized and alert.
Pilot savvy: Chicago. I feel like
They know what they’re doing.” United is trying to
make a better food
selection – but it’s
often bland.”
10
13. UAL CORPORATION 1998
“I like the plane upgrades –
Satisfying more customers. That’s a big part of
the aim behind our efforts. But it’s not the only
the 777 is a wonderful plane.
thing. Our objectives also are a part of our five-
year strategic plan – the Quality Flight Plan –
that we put into motion in 1995. The new
The more I can fly it the more
seats, our enhanced entertainment options,
our enhanced food service – all work toward
comfortable I am.” Mark Harm, UA 474
improving our product and service, a key
element of the plan.
That’s why our approach is balanced and flexi-
ble – it’s one that makes sure we don’t increase
But we’re not just improving the interior of the
the capacity of our fleet too much and yet allows
cabins. We’re upgrading our fleet of aircraft as
us to take advantage of profitable opportunities.
well – also in line with the Quality Flight Plan.
We’re on track with the “Retire-and-Replace”
We saw opportunities in 1998. Before placing
program we started in 1996. In 1998, we put
any orders, though, we made sure we had all the
39 aircraft out to pasture . . . 28 B737-200s, five
bases covered. The opportunities were there . . .
B747-100s and six DC10-10s. And we added
but could we comfortably grow with new aircraft?
41 brand new aircraft, planes our customers
After extensive analysis, the answer was “yes,”
tell us they prefer to fly – 16 Airbus 319-100s,
so we ordered 75 new aircraft – 23 new wide-
10 A320-200s, five B747-400s, two B757-200s,
bodies and 52 new narrowbodies. And if the
four B767-300s and four B777-200s. So as of the
general economic environment should suddenly
end of 1998, we’ve replaced 78 of the 111 air-
change for the worse, we can handle that by
craft targeted for retirement. And newer, more
retiring some of our older planes, such as the
efficient – and more popular – aircraft are now
B727s, earlier than scheduled.
flying in their stead.
Building on one of our greatest
Planes. Several of our customers in 14D made
it quite clear that the type of aircraft we fly is strengths - our route network
important to them. And as we have seen, much
of their preference for fleet type is based on
W
e wish we could say that we spent
comfort. What they probably don’t appreciate, all of 1998 undisturbed in our quest
though, is the importance of how an airline for service and product improve-
grows and allocates its fleet. ments. But we had a few distractions. Asia, for
one. Most of this diversion was due to the tur-
Our fleet is one of our greatest strengths and big- bulent economic conditions in Japan and the
gest assets – literally. And our Retire-and-Replace rest of Asia that started in the second half of
program works toward keeping it in tip-top shape. 1997. Throughout 1998, the Asian markets
showed little signs of improving.
But staying in shape is not enough. We need to
be able to add aircraft to our fleet as opportuni- With about 20 percent of our total operating
ties arise. At the same time, we know too well revenues coming from our Pacific region early
what happens when the industry gets too excited. in 1998, we decided to take action to soften the
We haven’t forgotten the past when airlines effect of the Asian weakness on our Pacific oper-
overextended themselves, adding too much ca- ations. We were ready. We put our contingency
pacity . . . which eventually put a lot of pressure plan – which we had developed for economic
on the bottom line. We learned from that experi- downturns – into action. The plan involved
ence – and we don’t intend to go there again. reallocating our capacity and tweaking our
11
14. UAL CORPORATION 1998
Especially if there’s a perceived potential for
schedules – moving aircraft around based on
more opportunities. As a result, we’ve seen
the areas affected.
added capacity in these markets . . . and that in
In a nutshell, we reduced our capacity in the turn means more competition. But, because we
Pacific by about 10 percent. We canceled some were well established in the Latin America and
segments, such as our Honolulu-Osaka flights – trans-Atlantic markets before the extra capacity
which we can add back when the economic was added, we’re confident that once the dust
situation improves. We reduced service to settles, we’ll still be in a good position there.
certain markets while increasing service to
others. And in some cases, such as with our The best story for us in 1998 came from the
Seattle-Tokyo service, we added new service. U.S. domestic front, where travel demand
remained strong. Just as our hubs in Chicago,
In making the decisions, we considered three Denver and San Francisco remained strong as
factors: the type of traffic affected – business well. And our efforts to strengthen our Los
or leisure; the potential for profitable service Angeles hub have met with continued success.
in the future; and the best way to position our
overall fleet based on the trends we were seeing We’re building on our strength in Los Angeles.
in the Pacific during the year. At the same time, we are ready to focus on our
East Coast hub at Washington’s Dulles Interna-
The strategy involved a lot of adjustments. Some tional Airport. Earlier this year we announced
of our moves – such as the new Chicago-Osaka the significant expansion – by 44 daily departures
service – did not live up to our expectations. So or 60 percent – of our operations at Dulles. The
we tweaked some more. The changes we made move is timely and strategic on several different
were not easy, but in the long run they helped – fronts. Dulles is the growth airport of the Wash-
we ended the year basically on a breakeven ington area. The surrounding area’s economy is
basis for the Pacific. Pretty good considering flourishing. Our regional partner Atlantic Coast
the circumstances. Airlines, one of our United Express partners, is
®
well established in the area and its fleet contains
Asia by itself presented a big challenge, but
the ever-popular regional jets. And our route
it wasn’t the only one. Latin America and our
network gives us the connections both from with-
trans-Atlantic markets complicated the revenue
in the U.S. and internationally to make Dulles
picture as well. These markets have been more
a stronger hub for us.
profitable for us and other carriers in the past
few years. Profitable markets draw interest.
We’re proud that we provide our customers
streamlined access to places all over the world
they need to go. Our own route network is
“The global alliance is a widely recognized as one of the world’s best.
To complement it, we are partnered with five
great thing. I really like that other airlines around the world – Air Canada,
Lufthansa, SAS, Varig and Thai – in the Star
I can get miles on all these Alliance™. In 1998, we announced the addition
of All Nippon Airways, Ansett Australia and Air
airlines. I can fly around New Zealand, which will join Star in 1999. Once
Ansett Australia and Air New Zealand join in
March, our customers will have access to 714
Thailand and use my destinations worldwide through the alliance.
And in October, when All Nippon Airways
United miles.” comes on board, that number will grow to 752.
Scott Reiman, UA 296
12
15. M.Tolaney,14D
Flight 934, Los Angeles to London
Originally from India, Mr. Tolaney considers safety one of United may not have been able to
Safety first: My card’s gone!
Murli Tolaney travels United’s strengths. “They have a good record.” find Mr. Tolaney’s lost credit card, but the Mileage
155,000 to 160,000 Plus service center impressed him with their efforts.
miles each year–130,000
of that on United. He’s
chairman and CEO of a
half-billion-dollar envi-
ronmental engineering
and construction firm
that designs and builds
pollution control and
water management
facilities – “anything to
do with the environment.”
“One incident impressed
me a lot. On one flight
from L.A. to Singapore,
I bought a few things on
the plane and left my
VISA card somewhere.
I called the 1K number
when I discovered the
loss. I tell you, they
impressed the hell out of
me. They kept calling He’s happy: “I get better treatment at United because
to tell me the status of I have VIP status here, but if I had to compare all
the search. They asked, U.S. airlines, I’d still rate United the best.”
‘Do you need any
1K
money? Do you need
anything else?’ They
didn’t have to do this.
Finally, they advised
“When you buy a car, you look
Inspiring loyalty:
me to cancel the card.
at comfort, safety, all those things. The same is
They care about the
with an airline – all of these things have to be
customer– this is great.”
right. Will customers be loyal to United? – I am.”
United’s strengths?
Working for the environment: As chair of a half-billion dollar environmental engineering and construction
“Safety – they have a
firm, Mr. Tolaney travels around the world in his company’s efforts to improve the environment.
good record. They have
a pretty good – but not
excellent – on-time
+
record. The planes are
comfortable. They do
take care of business
and first-class passen-
gers very well. It’s all
these things.”
13
16. UAL CORPORATION 1998
“United flies the places I want to the flight attendants and pilots on board the
flight – the impression they give our customers
to go – they have the right is important and lasting.
We’ve seen a lot of changes at United over the
routes for me.” John W. Fisher, UA 881 past several years since the company became
majority employee-owned. And with the changes
Our alliances don’t just offer more destinations.
have come some lessons. Not only have we
Results of a recent University of Illinois study
learned our lessons, but we’re using them to
on alliances – based on U.S. Department of
make United an even better place to work.
Transportation data – showed that fares on
alliance flights were dramatically lower for We’ve learned that ownership is not enough.
most international travelers when compared to We’ve learned that we have to make United a
those charged by non-alliance airlines. place where the best people in the industry want
to work . . . and stay. And we’ve learned that to
So our alliances benefit our customers and their do it we need to make some additional changes.
pocketbooks. They benefit us as well – to the
tune of more than $200 million in annual incre- Our midterm wage adjustment process in 1997
mental revenue. Clearly alliances are another taught us that competitive compensation is
move we believe strengthens United. critical to our success. So we introduced Vision
2000 – our plan to provide our employees com-
Our alliances are not exclusively with non-U.S. pensation that’s competitive with the industry
carriers. In April, we announced that we were in 2000, when the current ESOP stock allocation
exploring with Delta Air Lines the possibility of period comes to an end – and when we can make
a code-sharing and marketing alliance. Unfortu- changes to the plan. Consistent with Vision 2000,
nately, the code-sharing side of the proposed we announced improvements to the compensation
alliance did not materialize, but the marketing package for administrative employees hired after
side did – in the form of the joint frequent-flier the ESOP, and that includes benefits that have
program and joint lounge access we initiated with already gone into effect.
Delta in August. Through the frequent-flier link-
up, members of our award-winning Mileage Plus® Better pay and benefits help both in hiring and
program and Delta SkyMiles® program can now retaining good people. But they aren’t everything.
earn and redeem miles gained on both United and We also need to provide our people with the tools
Delta flights in the U.S., Virgin Islands and and skills necessary to provide the best service
Puerto Rico. That’s effectively doubling the ben- to our customers.
efits to our Mileage Plus customers. And at the
same time, our frequent fliers can relax in Delta’s So we’ve stepped up training. To foster better
Crown Room™ clubs throughout the world. working relationships among employees, we’ve
introduced our Roles and Responsibilities Dia-
logue Sessions that encourage open and honest
Making United a better place to work
communication in clarifying roles, responsibili-
O
ties and expectations of team members and
ur passengers in 14D all mentioned one
people working together. And we started Team
aspect of the travel experience that can
Leader training in October to equip our front-
make or break it – our people. From the
line supervisors and up-and-coming leaders with
reservations sales and service representatives
the skills that will help them in their jobs –
who make the reservation, to the customer ser-
relationship building, business issues, problem
vice representatives you meet at check-in, to
solving and issues resolution, to cite a few.
the ramp service agents who load the baggage,
14
17. UAL CORPORATION 1998
But we’re not stopping at teamwork among there and equipping them with more skills lead-
ers need through hands-on training.
employees. When a customer has a problem,
he or she wants it fixed now. Not shuffled off to
One key lesson we’ve learned is that creating
someone else. So we’re continuing our Customer
a new culture is not simply a matter of owning
Problem Resolution training, which is designed
stock or of simply embracing the concept of a
to teach employees how to handle and resolve
new corporate culture. We’ve learned the impor-
problems at their first point of contact. More
tance of listening. Of clarifying expectations. Of
than 37,000 of our employees have completed
respecting one another, and of working with one
the training, and our customers have given it
another to achieve the goals we hold in common.
high marks. A random survey of about 1,000
Mileage Plus members showed that the satisfac-
Together with our union counterparts, we’ve
tion ratings of members who’d experienced the
come to the conclusion that in order to work
results of our CPR training jumped 14 percent.
together more effectively, we need to clarify
our respective assumptions and expectations –
Travel-related problems aren’t the only challenge
and expand on our past successes. We’ve been
our employees – and our customers – face. In
working on that.
an airline like United, with service to 28 coun-
tries, there’s the element of intercultural and
Take, for example, our negotiations with the
language differences as well. With our “Air
Association of Flight Attendants (AFA) last year.
Language” training, which we rolled out in
Our innovative approach resulted not only in a
September, flight attendants can learn basic
landmark 10-year contract, but it also brought
airline language to better assist their Spanish-,
about valuable new developments. Such as our
Portuguese- and Japanese-speaking passengers.
new Qualified Purser position – specially trained
But language alone is not the answer. We’ve also
flight attendants who work to ensure that
introduced intercultural workshops to break
down communication barriers and build more
“The person in front of me in
understanding among both employees and pas-
sengers from different cultures.
the Premier Exec line saw
All of our efforts work toward our philosophy
of providing warm and attentive service to our
some available ticket agents
customers. These efforts help resolve problems.
And at the same time they help our employees
and went over to them. They
perform their jobs better. We think that’s part of
enjoying the job more as well.
told him to go back and then
Better compensation. Training. Learning to work
more effectively with one another. Empowered
turned to each other and
workers and responsive, responsible leadership.
These elements form the basis of our efforts to
started chatting. I thought
make United a better place to work.
this was rude. But the
And in 1999, for the first time, one of our four
corporate objectives is people-centered. We’ve
created an index to measure our employees’
gal I had was great –
overall satisfaction with their jobs and their
confidence in United. We’re starting at the
very efficient.”
operational level – building our leadership Andrew Nygard, UA 1848
15
18. A.Nygard,14D
Flight 1848, San Francisco to Denver
Andrew Nygard is a
“I use my frequent-flier awards to “Flying in and out of Denver, you
Nashville-bound: Getting around:
consultant with Deloitte
fly my family around. My wife recently used an award learn the tricks – you have to.”
& Touche based in the
to go to Nashville.”
San Francisco office.
He’s a Premier Executive
who currently commutes
each week to a project
in Denver.
“Flying in and out of
Denver, you learn the
tricks. For instance, the
main terminal has two
major points of ingress.
The line to get through
the security point for the
United side was 40 peo-
Keep on smiling: “People are tense when they travel.
ple deep; I went to the
It’s good to see the flight crew keeping its sense of other side where there
humor even if the passengers don’t.” were only four and I
went right through.”
“I’ve had extremely
good experiences with
your customer service
representatives. Last
Saturday I booked trips
for the next six weeks.
The last one involved
very tricky connections.
In the middle of this
complicated transaction,
my cell phone hung up
on us. I didn’t know the
Tricky connections: After getting cut off, a United reser-
agent’s name. I called
vations sales and service representative went the extra mile
the Premier line and
to call Mr. Nygard back to finish booking his itinerary.
asked them to find her.
The man said, ‘I can’t
do that.’ But while I was
on the phone, the origi-
nal agent phoned me
back. My phone hung
up on her again. She
then faxed me the
completed reservations.
This was amazing– she
“As a Premier Exec, I can get
Choose your seat:
didn’t have to do that.”
a seat assignment on Shuttle flights – that’s
important. I don’t want the middle seat. I want
the second exit row.”
16
19. UAL CORPORATION 1998
customers receive the highest quality of onboard But enough excuses. We’re committed to better
service. And the complex merging of scheduling on-time performance. Some of the changes we
for our North America and international flight made in 1998 should gain momentum – and that
attendants – which will ensure a consistent, should help. What are these changes? People
seamless standard of service worldwide. changes, such as the extra staff we added in
Los Angeles and San Francisco. Technological
We’ve also formed a new model for collective changes, such as the gate readers we now have
bargaining, one based on joint problem solving. in place at more than 40 airports throughout our
We’re using this approach in the preliminary system. Boarding process changes, such as new
check-in times and earlier cut-off times. And
contract negotiations with the Air Line Pilots
yes, our tightened carry-on baggage policy we
Association (ALPA), which we started ahead of
started putting in place in May. All part of our
schedule. This early start reflects another way both
plan to leave and arrive on-time.
United and our unions are doing things different-
ly. We are working to get the contracts in place
There’s been a lot of publicity about our new
on time – by their amendable date – which, in
carry-on policy – yes, the templates. We installed
the case of our pilots, is April 2000.
the baggage template at security checkpoints in
test airports throughout the United States. When
We’ve been using the same approach in the
customers put their carry-on bags on the belt of
contract negotiations with the International
the security machines, if the bags are too big,
Association of Machinists and Aerospace Workers
they won’t pass through the template – and they
(IAM) for our newly organized passenger service
then have to be checked for the flight.
employees, who voted to join the IAM in July.
And so far, the approach is working well. We
It was a tough move. It addresses two challenging
have pioneered joint labor relations training at issues – delayed departures and cabin safety.
various locations, training that includes both Many flights are delayed when people have to
union stewards and employee supervisors. As search for overhead space because their bags
the negotiations proceed, we feel confident our are too big or the bins are already full of others’
new way of working together will help us reach extra or oversized carry-ons. And overstuffed
a mutually agreeable contract more effectively – overhead bins can be a real safety hazard.
and in a more timely manner.
Our customers in 14D had a lot to say about the
template. In fact, a lot of people had a lot to say
Improving the travel experience
about the template. We weren’t surprised that
T
ime. The entire travel experience
revolves around it. Got to get to the air-
“I couldn’t have been happier
port on time. Get checked in. Get to the
gate . . . and then, sometimes when you get there
when they put in the two-
on time, the airplane doesn’t go anywhere.
bag limit. Before that, one
Late departures. They’re really annoying. They’re
one of the things that make travel such a hassle.
guy could squeeze his whole
That’s why we made on-time departure perfor-
mance one of our top objectives in 1998. And
while we got better, we didn’t reach our goal.
row in coach with huge
El Niño didn’t help. Airport congestion didn’t
help. And the fact that most of our hubs are
carry-ons.”
“weather-challenged” – that didn’t help, either. Steve Micheletti, UA 145
17
20. UAL CORPORATION 1998
“Your ground operations American flights – departure facilitators –
who help make the boarding experience a
don’t work as efficiently as more timely and less-hassled experience.
focusing on the first flights of the days. Logically,
q
they should – it takes a very when our first flights of the day go out late, so
do our other flights for the day. Conversely, if
the first flights go out on time, the rest of the
long time to load a United day’s flights tend to have better departure per-
formance. So we’ve added a STAR goal to our
flight. Getting all these extra overall on-time objective – to “Start The Airline
Right” by getting 71 percent of our first flights
bags checked seems to be of the day out on time.
increasing connection times. Our customers and
q
problematic.” employees suggested this and we listened. In
Andrew Nygard, UA 1848
our key markets, we eased our aggressive con-
nection times by five minutes. Helps connect-
on the whole most of the response was positive.
ing passengers, helps us manage the baggage
And we also weren’t surprised that since we
process better, and helps on-time performance.
introduced the templates, we’ve seen a marked
drop in flight delays due to carry-on issues. It’s
Our on-time efforts involve all of United’s
making a difference.
operations. Including United Shuttle®. Because
it operates on the West Coast, United Shuttle
Well fine and good, but as Mr. Nygard asks, what
is perpetually time-challenged by bad weather
about the checked luggage? What about the on-
and airport congestion. In 1998, United Shuttle
time performance of checked baggage, not to men-
adopted several strategies to circumvent
tion the unmentionable . . . lost or late luggage?
those challenges it cannot change and remedy
We recognize the need to improve our baggage- those it can.
handling process. We’re working on it. We’re up-
grading our bag-tag printers – better-quality bag One of those strategies is a team effort called the
tags mean more bags can be handled automati- Alternative Operations Team. The team – which
cally – which means they get to the right place includes a variety of people associated with
quicker. Another thing we’re doing is testing flight operations – teleconference early every
hand-held luggage scanners . . . to help us get morning to see if there are any major weather
our connecting customers’ bags from one flight problems brewing. If there are, they reroute
to another more quickly. Plus we’re upgrading some of the scheduled Los Angeles or San
our baggage sorting systems at Chicago, Seattle Francisco flights to nearby airports, such as
and Honolulu. These are just a sampling of the Oakland or San Jose.
ways we’re making our baggage process better,
And here’s where the team helps reduce
because unlike Mr. Gonzalez, we don’t consider
customer frustration as well. Say bad weather
two lost bags in 30 flights a good record. We’re
envelopes the San Francisco airport and the
aiming for zero lost bags in 30 flights.
team reroutes a Shuttle flight bound for San
Enforcing the carry-on baggage policy isn’t the Francisco to Oakland. The passengers scheduled
only step we’ve taken to get our flights out on on the rerouted flight get a choice – they can take
time. We’re also: the flight to Oakland or wait for the next avail-
able flight to San Francisco. And so far they tell
adding departure facilitators. In September,
q
us they like the option – and the results.
we introduced a new role on board our North
18
21. F.Gonzalez, Jr.,14D
Flight 881, Washington D.C. to Chicago
Based at Fort Belvoir, “My big problem with flying is my Most of the 100,000 miles
Back support: Traveling for his country:
Faustino Gonzalez, Jr. back. One of the best things about United is their a year Mr. Gonzalez travels for his job with the U.S.
works for the U.S. Army. use of 777s. You can adjust the seats to take the Army is on United Airlines.
pressure off the back and legs.”
“I spend more time in
planes than I do in my
car; it’s the major way of
transportation for me.”
Customer-oriented: United’s “professionalism is reflect-
“I understand United
ed even in the articles in HEMISPHERES magazine. The
Airlines has been voted
articles are geared toward the comfort of the traveler.”
the number-one airline,
and I believe it. Service
has been outstanding.”
“I’ve noticed changes
in the newer 777s that
respond to customer
requests, such as
having your own TV,
and the seats with
lumbar support.”
“United seems to be
very customer-oriented.
It’s a very professional Tick tick tick: “I’ve “They’ve lost my bag twice in the last two years. They crushed
A pretty good record:
organization. That pro- never waited at Dulles one suitcase, and they demolished a garment bag. Losing bags twice in 30 flights
fessionalism is reflected more than 10 minutes is pretty good. And when they did that, they delivered the bag to my house five or six
even in the articles in for check-in.” hours later. When other airlines did this, I went two to three days before I got it back.”
HEMISPHERES magazine
– the articles aren’t just
advertisements for the
airline, but are geared
toward the comfort of
the traveler.”
“United is on the right
track – they’ve come a
very long way. Dollars
used to be more impor-
tant there than custo-
mer satisfaction and
comfort. Business is
business – we all under-
stand that – but it now
is clear that at United,
the customer is first.”
19