Page 7 - annualReport_jmm
P. 7
To Our Stockholders
ChevronTexaco ended its first year following the merger with many
notable achievements but with a clear challenge to improve the
company’s financial performance.
Net income for 2002 was down more than 65 percent compared with the previous year. Likewise, the value of our
company’s stock – as with that of others in the energy industry and the broader market – experienced a sharp
downturn.
We are not satisfied with these results, and we are working aggressively to achieve substantial and sustainable
improvement in the performance of all our businesses. As we improve, we are building on a solid foundation,
including a strong balance sheet and excellent investment opportunities that the merger, completed in late 2001,
provided. Today, we have the size, scope and financial capabilities to create greater value for our stockholders.
The merger also has enabled us to deliver major cost savings. By the end of the first quarter of 2003, the
company will have achieved an annual synergy capture rate of $2.2 billion – far higher than the $1.2 billion we
had estimated at the outset.
5
