Union Pacific Reports Record First Quarter

OMAHA, Neb., April 17, 2014 /PRNewswire/ --

First Quarter Records

• Diluted earnings per share of $2.38 improved 17 percent.
• Operating revenues totaled $5.6 billion, up 7 percent.
• Operating income totaled $1.85 billion, up 14 percent.
• Operating ratio of 67.1 percent improved 2.0 points.

Union Pacific Corporation UNP today reported 2014 first quarter net income of $1.1 billion, or $2.38 per diluted share, compared to $957 million, or $2.03 per diluted share, in the first quarter 2013. 

"Union Pacific achieved record first quarter financial results, leveraging the strengths of our diverse franchise in the face of challenging weather conditions," said Jack Koraleski, Union Pacific chief executive officer.  "We're proud of the efforts of the men and women of Union Pacific, who worked tirelessly to serve our customers despite these weather challenges and helped us achieve such a solid start to the year."

First Quarter Summary

Operating revenue increased 7 percent in the first quarter 2014 to $5.6 billion, versus $5.3 billion in the first quarter 2013.  First quarter business volumes, as measured by total revenue carloads, increased 5 percent compared to 2013.  Volume increased in agricultural products, industrial products, coal, intermodal and automotive.  Chemicals volumes were flat versus 2013 as growth in base chemicals was offset by a reduction in crude oil shipments.  In addition:

• Quarterly freight revenue increased 6 percent compared to the first quarter 2013, driven by volume growth and core pricing gains.
• Union Pacific's operating ratio of 67.1 percent was a first quarter record, 2.0 points better than the first quarter 2013. 
• The average quarterly diesel fuel price of $3.12 per gallon in the first quarter 2014 was down 3 percent compared to the first quarter 2013. 
• Quarterly train speed, as reported to the Association of American Railroads, was 24.5 mph, down 7 percent versus the first quarter 2013. 
• The Company repurchased 3.8 million shares in the first quarter 2014 at an average share price of $178.85 and an aggregate cost of $683 million.

Summary of First Quarter Freight Revenues

• Agricultural Products up 16 percent
• Industrial Products up 10 percent
• Intermodal up 4 percent
• Coal up 3 percent
• Chemicals up 2 percent
• Automotive flat

2014 Outlook

"As we look forward, we're watching the economy very closely, as well as the potential impacts of weather, particularly on our coal and grain business," Koraleski said.  "There's still a lot of year ahead of us, but we are seeing signs of gradual economic improvement, and we're encouraged by the opportunities it presents.  With the power and potential of the Union Pacific franchise, we'll leverage these opportunities to drive record financial performance and shareholder returns this year and in the years to come."

About Union Pacific

Union Pacific Railroad is the principal operating company of Union Pacific Corporation UNP. One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2013, Union Pacific invested more than $21.6 billion in its network and operations to support America's transportation infrastructure.  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 Mike Staffenbeal, (402) 544-4227.

Media contact is Stephanie Serkhoshian, (402) 544-0100.

Supplemental financial information is attached.

This press release and related materials contain statements about the Corporation's future that are not statements of historical fact, including specifically the statements regarding the Corporation's expectations with respect to economic conditions and improvement, business opportunities, and its ability to improve financial performance and shareholder returns.  These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements also generally include, without limitation, information or statements regarding:  projections, predictions, expectations, estimates or forecasts as to the Corporation's and its subsidiaries' business, financial, and operational results, and future economic performance;  and management's beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved.  Forward-looking information, including expectations regarding operational and financial improvements and the Corporation's future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement.  Important factors, including risk factors, could affect the Corporation's and its subsidiaries' future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements.  Information regarding risk factors and other cautionary information are available in the Corporation's Annual Report on Form 10-K for 2013, which was filed with the SEC on February 7, 2014.  The Corporation updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).  

Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made.  The Corporation assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.  If the Corporation does update one or more forward-looking statements, no inference should be drawn that the Corporation will make additional updates with respect thereto or with respect to other forward-looking statements.  References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.

 

 

 

 

 

 

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SOURCE Union Pacific Corporation