Union Pacific Reports Record First Quarter

Diluted Earnings per Share up 13 Percent


First Quarter Records

  • Diluted earnings per share of $2.03 improved 13 percent.
  • Operating revenues totaled $5.3 billion, up 3 percent.
  • Operating income totaled $1.6 billion, up 8 percent.
  • Operating ratio of 69.1 percent improved 1.4 points.
  • Customer satisfaction index reached 94, up 1 point.

Union Pacific Corporation (NYSE: UNP) today reported 2013 first quarter net income of $957 million, or $2.03 per diluted share, compared to $863 million, or $1.79 per diluted share, in the first quarter 2012. 

"Union Pacific achieved record first quarter financial results, leveraging the strengths of our diverse franchise despite significantly weaker coal and grain markets," said Jack Koraleski, Union Pacific chief executive officer.  "We efficiently managed our operations in the face of dynamic volume shifts across the network, as evidenced by our record first quarter operating ratio and customer satisfaction results."

First Quarter Summary

Despite lower carloadings, operating revenue increased 3 percent in the first quarter 2013 to $5.3 billion versus $5.1 billion in the first quarter 2012.  First quarter business volumes, as measured by total revenue carloads, decreased 2 percent compared to 2012.  Volume declines in coal and agricultural products more than offset growth in chemicals, intermodal and automotive shipments.  Volumes for industrial products were flat versus 2012 driven by a reduction in hazardous waste shipments.  In addition:

  • Quarterly freight revenue increased 3 percent compared to the first quarter 2012, mainly driven by core pricing gains.
  • Union Pacific's operating ratio of 69.1 percent was a first quarter record, 1.4 points better than the first quarter 2012. 
  • The average quarterly diesel fuel price of $3.23 per gallon in the first quarter 2013 was flat compared to the first quarter 2012. 
  • The Customer Satisfaction Index of 94 set a first quarter record, 1 point better than the first quarter 2012.
  • Quarterly train speed, as reported to the Association of American Railroads, was 26.4 mph, flat versus the first quarter 2012. 
  • The Company repurchased 2.9 million shares in the first quarter 2013 at an average share price of $136.58 and an aggregate cost of $394 million.

Summary of First Quarter Freight Revenues

  • Chemicals up 14 percent
  • Automotive up 13 percent
  • Intermodal up 9 percent
  • Industrial Products up 6 percent
  • Coal down 6 percent
  • Agricultural down 9 percent

2013 Outlook

"While there is still much uncertainty in the year ahead, our diverse franchise supports our continued focus on profitable growth and business development opportunities," Koraleski said.  "We're committed to providing safe, efficient and reliable service to drive greater customer value and increased shareholder returns in the future."

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