UPS Board increases dividend, names Beystehner a director
The Board of Directors of UPS (NYSE:UPS), citing its confidence in the company’s financial position and prospects for growth, today increased the quarterly dividend by nearly 18% from 28-cents per share to 33-cents per share on all outstanding Class A and Class B shares.
The dividend is payable March 9, 2005, to shareholders of record on Feb. 22, 2005.
The Board also announced it had appointed John Beystehner, UPS’s chief operating officer and president of UPS Airlines, to serve as a director. Beystehner will replace UPS Senior Vice President Cal Darden who steps down from the Board on March 31. Beystehner then will stand for election to a regular one-year term at the annual shareowners’ meeting in May.
Darden, the senior vice president for U.S. operations, is retiring next month after a 33-year career. He has directed U.S. operations for the past seven years and has been a member of the UPS Board of Directors since 2001.
“Cal Darden has made outstanding contributions to this company and to this Board and will be greatly missed,” said Mike Eskew, UPS chairman and CEO. “The legacy of his 33 years is one of leadership and operational excellence. It’s also a legacy of friendship, commitment, integrity and high standards. He raised the bar for all of us.”
With the naming of Beystehner and the retirement of Darden, the UPS Board will continue to have three active employees serving as directors. In addition to Eskew and Beystehner, the Board includes Lea Soupata, the senior vice president for Human Resources.
UPS said it believes that as a result of its strong culture of employee ownership, it has always been in the best interest of shareowners to include representation on the Board from its senior leadership. More than 45% of UPS’s outstanding shares are held by UPS employees and retirees.
Beystehner, 53, joined UPS in 1971 as a part-time clerk while attending Boston College. After graduating in 1973 with a bachelor’s degree in finance, he joined UPS full time and then earned a law degree in 1977 from Suffolk University Law School. Beystehner subsequently served in a wide range of positions in package operations as well as in marketing, sales, legal and air operations.
He joined UPS’s Management Committee, which oversees the day-to-day operation of the company, in 1999 when he was named senior vice president for worldwide sales and marketing. Beystehner became the chief operating officer and president of UPS Airlines in 2004.
“It is a testament to the strength and depth of our management team that we have such high-caliber people as John ready to step up and serve our company from a position on the Board of Directors,” said Eskew. “This is a responsibility that I know John will perform well.”
The Board’s decision to increase the quarterly dividend follows a record performance by the company in 2004 – with net income rising 15% to $3.3 billion – and predictions of a strong 2005 with total adjusted earnings per share expected to climb 13-to-17%. The company also expects to continue generating substantial positive cash flow in 2005.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
