Union Pacific Reports Best-Ever Quarterly Results
Diluted Earnings per Share up 13 Percent
Omaha, Neb., October 17, 2013 Union Pacific Corporation (NYSE: UNP) today reported 2013 third quarter net income of $1.15 billion, or $2.48 per diluted share, compared to $1 billion, or $2.19 per diluted share, in the third quarter 2012.
"Union Pacific achieved all-time record financial results this quarter," said Jack Koraleski, Union Pacific chief executive officer. "Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise. When combined with real core pricing and productivity gains, we more than offset flat volumes to generate a new, best-ever quarterly Operating Ratio of 64.8 percent."
Third Quarter Summary
Operating revenue increased 4 percent in the third quarter 2013 to nearly $5.6 billion versus $5.3 billion in the third quarter 2012. Third quarter business volumes, as measured by total revenue carloads, were flat compared to 2012. Volume growth from industrial products, automotive, and chemical shipments was offset by declines in coal, agricultural products, and intermodal shipments. In addition:
- Quarterly freight revenue increased 5 percent compared to the third quarter 2012, mainly driven by core pricing gains.
- Union Pacific's operating ratio of 64.8 percent was a best-ever quarterly record, 1.8 points better than the third quarter 2012 and 0.9 points better than the previous quarterly record set in the second quarter 2013.
- The average quarterly diesel fuel price of $3.17 per gallon in the third quarter 2013 was down 1 percent compared to the third quarter 2012.
- The Customer Satisfaction Index of 93 was one point lower than the third quarter 2012.
- Quarterly train speed, as reported to the Association of American Railroads, was 26.3 mph, improving 1 percent versus the third quarter 2012.
- Lost revenue and increased costs from the flooding in Colorado negatively impacted operating income by about $10 million.
- The Company repurchased nearly 3.7 million shares in the third quarter 2013 at an average share price of $156.77 and an aggregate cost of $575 million.
Summary of Third Quarter Freight Revenues
- Automotive up 17 percent
- Industrial Products up 11 percent
- Chemicals up 5 percent
- Coal up 2 percent
- Intermodal flat
- Agricultural down 2 percent
"As we move through the fourth quarter, we continue to monitor the economic landscape," Koraleski said. "Supported by our diverse franchise, we remain agile and well positioned for economic recovery. We'll continue to focus on running a safe, efficient, and reliable network that generates greater value for both our customers and shareholders going forward."
About Union Pacific
Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2012, Union Pacific invested $18 billion in its network and operations to support America's transportation infrastructure, including a record $3.7 billion in 2012. The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.
Investor contact is Michelle Gerhardt, (402) 544-4227.
Media contact is Tom Lange, (402) 544-3560.
Supplemental financial information is attached.
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