Union Pacific Reports Second Quarter 2024 Results
Union Pacific (NYSE: UNP) reported strong second quarter 2024 results, with net income of $1.7 billion, or $2.74 per diluted share, up 7% from the same period in 2023. The company's operating income increased by 9% to $2.4 billion, while operating revenue grew 1% to $6.0 billion. Union Pacific's operating ratio improved by 300 basis points to 60.0%.
Key highlights include:
- Freight revenue excluding fuel surcharge grew 2%
- Operating performance improvements in safety and efficiency
- Positive profitability outlook for the second half of 2024
- Share repurchases of ~$1.5 billion planned for 2024
- Capital plan of $3.4 billion maintained
The company's CEO, Jim Vena, expressed confidence in their strategy focusing on safety, service, and operational excellence to drive future success.
Union Pacific (NYSE: UNP) ha riportato risultati robusti nel secondo trimestre del 2024, con un reddito netto di 1,7 miliardi di dollari, ovvero 2,74 dollari per azione diluita, in aumento del 7% rispetto allo stesso periodo del 2023. Il reddito operativo dell'azienda è aumentato del 9% a 2,4 miliardi di dollari, mentre il fatturato operativo è cresciuto dell'1% a 6,0 miliardi di dollari. Il rapporto operativo di Union Pacific è migliorato di 300 punti base, raggiungendo il 60,0%.
I punti salienti includono:
- Il fatturato da trasporto, escluse le sovrattasse sul carburante, è aumentato del 2%
- Miglioramenti delle prestazioni operative in termini di sicurezza ed efficienza
- Previsioni di redditività positive per la seconda metà del 2024
- Riacquisti di azioni per circa 1,5 miliardi di dollari previsti per il 2024
- Piano di capitali mantenuto a 3,4 miliardi di dollari
Il CEO dell'azienda, Jim Vena, ha espresso fiducia nella loro strategia incentrata sulla sicurezza, sul servizio e sull'eccellenza operativa per guidare il successo futuro.
Union Pacific (NYSE: UNP) reportó resultados sólidos en el segundo trimestre de 2024, con un ingreso neto de 1,7 mil millones de dólares, o 2,74 dólares por acción diluida, un aumento del 7% en comparación con el mismo periodo de 2023. El ingreso operativo de la compañía aumentó un 9% a 2,4 mil millones de dólares, mientras que los ingresos operativos crecieron un 1% a 6,0 mil millones de dólares. La relación operativa de Union Pacific mejoró en 300 puntos básicos, alcanzando el 60,0%.
Los puntos destacados incluyen:
- El ingreso por carga excluyendo el recargo por combustible creció un 2%
- Mejoras en el desempeño operativo en seguridad y eficiencia
- Perspectivas positivas de rentabilidad para la segunda mitad de 2024
- Recompras de acciones por aproximadamente 1,5 mil millones de dólares planificadas para 2024
- Mantención del plan de capital de 3,4 mil millones de dólares
El CEO de la compañía, Jim Vena, expresó confianza en su estrategia centrada en la seguridad, el servicio y la excelencia operativa para impulsar el éxito futuro.
유니온 퍼시픽 (NYSE: UNP)은 2024년 2분기에 강력한 실적을 보고하였으며, 순이익은 17억 달러, 희석주당 2.74달러로 2023년 같은 기간 대비 7% 증가하였습니다. 회사의 운영 소득은 9% 증가하여 24억 달러에 달하며, 운영 수익은 1% 증가하여 60억 달러에 이릅니다. 유니온 퍼시픽의 운영 비율은 300 베이시스 포인트 개선되어 60.0%에 도달하였습니다.
주요 하이라이트는 다음과 같습니다:
- 연료 할증료를 제외한 화물 수익이 2% 증가
- 안전성과 효율성 분야의 운영 성과 개선
- 2024년 하반기 긍정적인 수익성 전망
- 2024년 약 15억 달러 규모의 자사주 매입 계획
- 34억 달러의 자본 계획 유지
회사의 CEO인 짐 베나는 미래의 성공을 위해 안전, 서비스 및 운영 우수성에 중점을 둔 전략에 대한 자신감을 표현하였습니다.
Union Pacific (NYSE: UNP) a enregistré de solides résultats pour le deuxième trimestre 2024, avec un revenu net de 1,7 milliard de dollars, soit 2,74 dollars par action diluée, en hausse de 7% par rapport à la même période en 2023. Le revenu opérationnel de l'entreprise a augmenté de 9% pour atteindre 2,4 milliards de dollars, tandis que le chiffre d'affaires opérationnel a crû de 1% pour atteindre 6,0 milliards de dollars. Le ratio opérationnel d'Union Pacific s'est amélioré de 300 points de base pour s'établir à 60,0%.
Les points clés comprennent :
- Les revenus de fret, hors surtaxe carburant, ont augmenté de 2%
- Améliorations des performances opérationnelles en matière de sécurité et d'efficacité
- Perspectives de rentabilité positives pour la seconde moitié de 2024
- Rachats d'actions d'environ 1,5 milliard de dollars prévus pour 2024
- Plan d'investissement maintenu à 3,4 milliards de dollars
Le PDG de l'entreprise, Jim Vena, a exprimé sa confiance dans leur stratégie axée sur la sécurité, le service et l'excellence opérationnelle pour favoriser le succès futur.
Union Pacific (NYSE: UNP) hat starke Ergebnisse im 2. Quartal 2024 bekanntgegeben, mit einem Nettogewinn von 1,7 Milliarden US-Dollar, oder 2,74 US-Dollar pro verwässerter Aktie, was einem Anstieg von 7% im Vergleich zum gleichen Zeitraum im Jahr 2023 entspricht. Der Betriebsertrag des Unternehmens stieg um 9% auf 2,4 Milliarden US-Dollar, während die Betriebseinnahmen um 1% auf 6,0 Milliarden US-Dollar wuchsen. Das Betriebsergebnis von Union Pacific verbesserte sich um 300 Basispunkte auf 60,0%.
Wichtige Highlights sind:
- Frachtumsatz ohne Kraftstoffzuschläge wuchs um 2%
- Verbesserungen der Betriebsleistung in Sicherheit und Effizienz
- Positive Rentabilitätsprognose für die zweite Hälfte 2024
- Aktienrückkäufe von etwa 1,5 Milliarden US-Dollar für 2024 geplant
- Kapitalplan von 3,4 Milliarden US-Dollar bleibt bestehen
Der CEO des Unternehmens, Jim Vena, äußerte Vertrauen in ihre Strategie, die sich auf Sicherheit, Service und operationale Exzellenz konzentriert, um zukünftigen Erfolg zu gewährleisten.
- Net income increased by 7% to $1.7 billion
- Earnings per diluted share grew 7% to $2.74
- Operating income rose 9% to $2.4 billion
- Operating ratio improved by 300 basis points to 60.0%
- Freight revenue excluding fuel surcharge grew 2%
- Locomotive productivity improved 6% to 134 GTMs per horsepower day
- Workforce productivity improved 5% to 1,031 car miles per employee
- Fuel consumption rate improved 1% to 1.080 gallons per thousand GTMs
- Second half volume outlook remains uncertain due to economic indicators and coal demand
- Lower quarterly fuel prices negatively impacted the operating ratio by 10 basis points
- An existing environmental remediation compliance order negatively impacted the operating ratio by 30 basis points
Union Pacific's Q2 2024 results showcase solid financial performance amidst challenging economic conditions. The
The
However, investors should note the cautious outlook for the second half of 2024, with uncertainty around volume growth tied to economic indicators and coal demand. This suggests potential headwinds that could impact future performance. The commitment to
Union Pacific's Q2 results reflect a company successfully navigating the complex landscape of modern rail transportation. The slight
The improvements in safety metrics and operational efficiency are particularly encouraging. The
However, the flat freight car velocity at 201 daily miles per car indicates potential network congestion or operational challenges, possibly related to the mentioned weather issues. The
The uncertain volume outlook for the second half of 2024, particularly regarding coal demand, highlights the ongoing challenges faced by the rail industry in adapting to changing energy landscapes and economic fluctuations. Union Pacific's ability to maintain its pricing strategy while navigating these uncertainties will be important for sustained performance.
-
Second quarter earnings per diluted share of
, up$2.74 7% -
Second quarter operating income up
9% -
Second quarter net income up
7%
“Our second quarter performance demonstrates the team’s ability to deliver strong results,” said Jim Vena, Union Pacific Chief Executive Officer. “This provides further proof that our strategy to be the best in safety, service, and operational excellence will drive success. The entire Union Pacific team is energized behind this strategy and wants to win. As we build on the foundation we’ve laid over the past 12 months, we look forward to demonstrating what’s possible for our great company.”
Second Quarter Summary: 2024 vs. 2023
Financial Results: Solid Operating Income Growth Driven by Core Pricing Gains, Operating Efficiency, and Intermodal Equipment Sale
-
Operating revenue of
was up$6.0 billion 1% driven by core pricing gains and increased volume partially offset by business mix and reduced fuel surcharge. -
Freight revenue excluding fuel surcharge revenue grew
2% as revenue carloads grew slightly. -
Operating ratio was
60.0% , an improvement of 300 basis points. Lower quarterly fuel prices and an existing environmental remediation compliance order negatively impacted the operating ratio 10 and 30 basis points, respectively. A sale of intermodal equipment aided the operating ratio 70 basis points. -
Operating income of
was up$2.4 billion 9% .
Operating Performance: Continued Improvement Across Safety and Operational Excellence as Network Challenged by Weather
- Union Pacific’s year-to-date reportable personal injury and reportable derailment rates both improved.
- Quarterly freight car velocity of 201 daily miles per car was flat.
-
Quarterly locomotive productivity was 134 gross ton-miles (GTMs) per horsepower day, a
6% improvement. -
Average maximum train length was 9,544 feet, a
2% increase. -
Quarterly workforce productivity improved
5% to 1,031 car miles per employee. -
Fuel consumption rate of 1.080, measured in gallons of fuel per thousand GTMs, improved
1% .
2024 Outlook
Updated
- Second half volume outlook remains uncertain based on economic indicators and coal demand
- Profitability outlook continues positive momentum with strong service product, improving network efficiency, and solid pricing
-
Share repurchases of
~ in 2024$1.5 billion
Affirmed
- Pricing dollars in excess of inflation dollars
-
No change to long-term capital allocation strategy
-
Capital plan of
$3.4 billion
-
Capital plan of
Second Quarter 2024 Earnings Conference Call
Union Pacific will webcast its second quarter 2024 earnings release presentation live at https://investor.unionpacific.com and via teleconference on Thursday, July 25, 2024, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
Supplemental financial information is attached.
This news release and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the potential impacts of public health crises, including pandemics, epidemics and the outbreak of other contagious diseases, such as the coronavirus and its variant strains (COVID); the
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 Company’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 Company’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 Company’s Annual Report on Form 10-K for 2023, which was filed with the SEC on February 9, 2024. The Company 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 Company 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 Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to the Company’s 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.
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Millions, Except Per Share Amounts and |
|
2nd Quarter |
|
|
Year-to-Date |
|
|||||||||||||||||
Percentages, For the Periods Ended June 30, |
2024 |
|
|
2023 |
|
|
|
% |
|
2024 |
|
|
2023 |
|
|
% |
|||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues |
|
$ |
5,638 |
|
|
$ |
5,569 |
|
|
|
1 |
% |
|
$ |
11,254 |
|
|
$ |
11,225 |
|
|
- |
% |
Other revenues |
|
|
369 |
|
|
|
394 |
|
|
|
(6 |
) |
|
|
784 |
|
|
|
794 |
|
|
(1 |
) |
Total operating revenues |
|
|
6,007 |
|
|
|
5,963 |
|
|
|
1 |
|
|
|
12,038 |
|
|
|
12,019 |
|
|
- |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
1,187 |
|
|
|
1,269 |
|
|
|
(6 |
) |
|
|
2,410 |
|
|
|
2,448 |
|
|
(2 |
) |
Fuel |
|
|
625 |
|
|
|
664 |
|
|
|
(6 |
) |
|
|
1,283 |
|
|
|
1,430 |
|
|
(10 |
) |
Purchased services and materials |
|
|
644 |
|
|
|
650 |
|
|
|
(1 |
) |
|
|
1,257 |
|
|
|
1,303 |
|
|
(4 |
) |
Depreciation |
|
|
596 |
|
|
|
577 |
|
|
|
3 |
|
|
|
1,190 |
|
|
|
1,149 |
|
|
4 |
|
Equipment and other rents |
|
|
219 |
|
|
|
248 |
|
|
|
(12 |
) |
|
|
435 |
|
|
|
483 |
|
|
(10 |
) |
Other |
|
|
336 |
|
|
|
351 |
|
|
|
(4 |
) |
|
|
691 |
|
|
|
708 |
|
|
(2 |
) |
Total operating expenses |
|
|
3,607 |
|
|
|
3,759 |
|
|
|
(4 |
) |
|
|
7,266 |
|
|
|
7,521 |
|
|
(3 |
) |
Operating Income |
|
|
2,400 |
|
|
|
2,204 |
|
|
|
9 |
|
|
|
4,772 |
|
|
|
4,498 |
|
|
6 |
|
Other income, net |
|
|
103 |
|
|
|
93 |
|
|
|
11 |
|
|
|
195 |
|
|
|
277 |
|
|
(30 |
) |
Interest expense |
|
|
(319 |
) |
|
|
(339 |
) |
|
|
(6 |
) |
|
|
(643 |
) |
|
|
(675 |
) |
|
(5 |
) |
Income before income taxes |
|
|
2,184 |
|
|
|
1,958 |
|
|
|
12 |
|
|
|
4,324 |
|
|
|
4,100 |
|
|
5 |
|
Income tax expense |
|
|
(511 |
) |
|
|
(389 |
) |
|
|
31 |
|
|
|
(1,010 |
) |
|
|
(901 |
) |
|
12 |
|
Net Income |
|
$ |
1,673 |
|
|
$ |
1,569 |
|
|
|
7 |
% |
|
$ |
3,314 |
|
|
$ |
3,199 |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$ |
2.75 |
|
|
$ |
2.58 |
|
|
|
7 |
% |
|
$ |
5.44 |
|
|
$ |
5.25 |
|
|
4 |
% |
Earnings per share - diluted |
|
$ |
2.74 |
|
|
$ |
2.57 |
|
|
|
7 |
|
|
$ |
5.43 |
|
|
$ |
5.24 |
|
|
4 |
|
Weighted average number of shares - basic |
|
609.4 |
|
|
|
608.7 |
|
|
|
- |
|
|
|
609.3 |
|
|
|
609.6 |
|
|
- |
|
|
Weighted average number of shares - diluted |
|
610.3 |
|
|
|
609.5 |
|
|
|
- |
|
|
|
610.3 |
|
|
|
610.5 |
|
|
- |
|
|
Dividends declared per share |
|
$ |
1.30 |
|
|
$ |
1.30 |
|
|
|
- |
|
|
$ |
2.60 |
|
|
$ |
2.60 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratio |
|
|
60.0 |
% |
|
|
63.0 |
% |
|
|
(3.0) |
pts |
|
|
60.4 |
% |
|
|
62.6 |
% |
|
(2.2) |
pts |
Effective Tax Rate |
|
|
23.4 |
% |
|
|
19.9 |
% |
|
|
3.5 |
pts |
|
|
23.4 |
% |
|
|
22.0 |
% |
|
1.4 |
pts |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues Statistics (unaudited) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2nd Quarter |
|
|
Year-to-Date |
|
||||||||||||||||||
For the Periods Ended June 30, |
|
2024 |
|
|
2023 |
|
|
% |
|
|
2024 |
|
|
2023 |
|
|
% |
|
||||||
Freight Revenues (Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain products |
|
$ |
901 |
|
|
$ |
890 |
|
|
|
1 |
% |
|
$ |
1,844 |
|
|
$ |
1,833 |
|
|
|
1 |
% |
Fertilizer |
|
|
203 |
|
|
|
183 |
|
|
|
11 |
|
|
|
404 |
|
|
|
369 |
|
|
|
9 |
|
Food & refrigerated |
|
|
278 |
|
|
|
255 |
|
|
|
9 |
|
|
|
563 |
|
|
|
518 |
|
|
|
9 |
|
Coal & renewables |
|
|
339 |
|
|
|
429 |
|
|
|
(21 |
) |
|
|
727 |
|
|
|
934 |
|
|
|
(22 |
) |
Bulk |
|
|
1,721 |
|
|
|
1,757 |
|
|
|
(2 |
) |
|
|
3,538 |
|
|
|
3,654 |
|
|
|
(3 |
) |
Industrial chemicals & plastics |
|
|
593 |
|
|
|
545 |
|
|
|
9 |
|
|
|
1,165 |
|
|
|
1,081 |
|
|
|
8 |
|
Metals & minerals |
|
|
530 |
|
|
|
562 |
|
|
|
(6 |
) |
|
|
1,045 |
|
|
|
1,098 |
|
|
|
(5 |
) |
Forest products |
|
|
342 |
|
|
|
347 |
|
|
|
(1 |
) |
|
|
680 |
|
|
|
679 |
|
|
|
- |
|
Energy & specialized markets |
|
|
658 |
|
|
|
632 |
|
|
|
4 |
|
|
|
1,337 |
|
|
|
1,245 |
|
|
|
7 |
|
Industrial |
|
|
2,123 |
|
|
|
2,086 |
|
|
|
2 |
|
|
|
4,227 |
|
|
|
4,103 |
|
|
|
3 |
|
Automotive |
|
|
659 |
|
|
|
625 |
|
|
|
5 |
|
|
|
1,270 |
|
|
|
1,212 |
|
|
|
5 |
|
Intermodal |
|
|
1,135 |
|
|
|
1,101 |
|
|
|
3 |
|
|
|
2,219 |
|
|
|
2,256 |
|
|
|
(2 |
) |
Premium |
|
|
1,794 |
|
|
|
1,726 |
|
|
|
4 |
|
|
|
3,489 |
|
|
|
3,468 |
|
|
|
1 |
|
Total |
|
$ |
5,638 |
|
|
$ |
5,569 |
|
|
|
1 |
% |
|
$ |
11,254 |
|
|
|
11,225 |
|
|
|
- |
% |
Revenue Carloads (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain products |
|
|
200 |
|
|
|
197 |
|
|
|
2 |
% |
|
|
410 |
|
|
|
399 |
|
|
|
3 |
% |
Fertilizer |
|
|
62 |
|
|
|
48 |
|
|
|
29 |
|
|
|
109 |
|
|
|
93 |
|
|
|
17 |
|
Food & refrigerated |
|
|
46 |
|
|
|
44 |
|
|
|
5 |
|
|
|
92 |
|
|
|
88 |
|
|
|
5 |
|
Coal & renewables |
|
|
158 |
|
|
|
203 |
|
|
|
(22 |
) |
|
|
335 |
|
|
|
419 |
|
|
|
(20 |
) |
Bulk |
|
|
466 |
|
|
|
492 |
|
|
|
(5 |
) |
|
|
946 |
|
|
|
999 |
|
|
|
(5 |
) |
Industrial chemicals & plastics |
|
|
169 |
|
|
|
164 |
|
|
|
3 |
|
|
|
333 |
|
|
|
321 |
|
|
|
4 |
|
Metals & minerals |
|
|
184 |
|
|
|
210 |
|
|
|
(12 |
) |
|
|
354 |
|
|
|
398 |
|
|
|
(11 |
) |
Forest products |
|
|
55 |
|
|
|
55 |
|
|
|
- |
|
|
|
108 |
|
|
|
107 |
|
|
|
1 |
|
Energy & specialized markets |
|
|
147 |
|
|
|
144 |
|
|
|
2 |
|
|
|
301 |
|
|
|
283 |
|
|
|
6 |
|
Industrial |
|
|
555 |
|
|
|
573 |
|
|
|
(3 |
) |
|
|
1,096 |
|
|
|
1,109 |
|
|
|
(1 |
) |
Automotive |
|
|
218 |
|
|
|
213 |
|
|
|
2 |
|
|
|
425 |
|
|
|
413 |
|
|
|
3 |
|
Intermodal [a] |
|
|
798 |
|
|
|
749 |
|
|
|
7 |
|
|
|
1,537 |
|
|
|
1,483 |
|
|
|
4 |
|
Premium |
|
|
1,016 |
|
|
|
962 |
|
|
|
6 |
|
|
|
1,962 |
|
|
|
1,896 |
|
|
|
3 |
|
Total |
|
|
2,037 |
|
|
|
2,027 |
|
|
|
- |
% |
|
|
4,004 |
|
|
|
4,004 |
|
|
|
- |
% |
Average Revenue per Car |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain products |
|
$ |
4,493 |
|
|
$ |
4,527 |
|
|
|
(1 |
)% |
|
$ |
4,493 |
|
|
$ |
4,598 |
|
|
|
(2 |
)% |
Fertilizer |
|
|
3,311 |
|
|
|
3,830 |
|
|
|
(14 |
) |
|
|
3,727 |
|
|
|
3,978 |
|
|
|
(6 |
) |
Food & refrigerated |
|
|
5,943 |
|
|
|
5,740 |
|
|
|
4 |
|
|
|
6,086 |
|
|
|
5,851 |
|
|
|
4 |
|
Coal & renewables |
|
|
2,156 |
|
|
|
2,107 |
|
|
|
2 |
|
|
|
2,173 |
|
|
|
2,228 |
|
|
|
(2 |
) |
Bulk |
|
|
3,692 |
|
|
|
3,568 |
|
|
|
3 |
|
|
|
3,740 |
|
|
|
3,657 |
|
|
|
2 |
|
Industrial chemicals & plastics |
|
|
3,507 |
|
|
|
3,336 |
|
|
|
5 |
|
|
|
3,497 |
|
|
|
3,368 |
|
|
|
4 |
|
Metals & minerals |
|
|
2,885 |
|
|
|
2,677 |
|
|
|
8 |
|
|
|
2,955 |
|
|
|
2,760 |
|
|
|
7 |
|
Forest products |
|
|
6,249 |
|
|
|
6,337 |
|
|
|
(1 |
) |
|
|
6,272 |
|
|
|
6,360 |
|
|
|
(1 |
) |
Energy & specialized markets |
|
|
4,462 |
|
|
|
4,388 |
|
|
|
2 |
|
|
|
4,439 |
|
|
|
4,398 |
|
|
|
1 |
|
Industrial |
|
|
3,825 |
|
|
|
3,646 |
|
|
|
5 |
|
|
|
3,855 |
|
|
|
3,701 |
|
|
|
4 |
|
Automotive |
|
|
3,033 |
|
|
|
2,928 |
|
|
|
4 |
|
|
|
2,991 |
|
|
|
2,935 |
|
|
|
2 |
|
Intermodal [a] |
|
|
1,421 |
|
|
|
1,471 |
|
|
|
(3 |
) |
|
|
1,444 |
|
|
|
1,521 |
|
|
|
(5 |
) |
Premium |
|
|
1,766 |
|
|
|
1,794 |
|
|
|
(2 |
) |
|
|
1,779 |
|
|
|
1,829 |
|
|
|
(3 |
) |
Average |
|
$ |
2,768 |
|
|
$ |
2,748 |
|
|
|
1 |
% |
|
$ |
2,811 |
|
|
$ |
2,804 |
|
|
|
- |
% |
[a] |
For intermodal shipments each container or trailer equals one carload. |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Financial Position (unaudited) |
||||||||
|
|
|
|
|||||
|
Jun. 30, |
Dec. 31, |
|
|||||
Millions, Except Percentages |
|
2024 |
|
|
2023 |
|
||
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,137 |
|
|
$ |
1,055 |
|
Short-term investments |
|
|
20 |
|
|
|
16 |
|
Other current assets |
|
|
3,341 |
|
|
|
3,077 |
|
Investments |
|
|
2,705 |
|
|
|
2,605 |
|
Properties, net |
|
|
57,835 |
|
|
|
57,398 |
|
Operating lease assets |
|
|
1,386 |
|
|
|
1,643 |
|
Other assets |
|
|
1,393 |
|
|
|
1,338 |
|
Total assets |
|
$ |
67,817 |
|
|
$ |
67,132 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Common Shareholders' Equity |
|
|
|
|
|
|
|
|
Debt due within one year |
|
$ |
727 |
|
|
$ |
1,423 |
|
Other current liabilities |
|
|
3,560 |
|
|
|
3,683 |
|
Debt due after one year |
|
|
31,165 |
|
|
|
31,156 |
|
Operating lease liabilities |
|
|
988 |
|
|
|
1,245 |
|
Deferred income taxes |
|
|
13,166 |
|
|
|
13,123 |
|
Other long-term liabilities |
|
|
1,722 |
|
|
|
1,714 |
|
Total liabilities |
|
|
51,328 |
|
|
|
52,344 |
|
Total common shareholders' equity |
|
|
16,489 |
|
|
|
14,788 |
|
Total liabilities and common shareholders' equity |
|
$ |
67,817 |
|
|
$ |
67,132 |
|
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||
|
|
|
||||
|
Year-to-Date |
|
||||
Millions, for the Periods Ended June 30, |
2024 |
|
2023 |
|
||
Operating Activities |
|
|
|
|
|
|
Net income |
$ |
3,314 |
|
$ |
3,199 |
|
Depreciation |
|
1,190 |
|
|
1,149 |
|
Deferred and other income taxes |
|
43 |
|
|
36 |
|
Other - net |
|
(514 |
) |
|
(526 |
) |
Cash provided by operating activities |
|
4,033 |
|
|
3,858 |
|
Investing Activities |
|
|
|
|
|
|
Capital investments* |
|
(1,699 |
) |
|
(1,607 |
) |
Other - net |
|
107 |
|
|
(67 |
) |
Cash used in investing activities |
|
(1,592 |
) |
|
(1,674 |
) |
Financing Activities |
|
|
|
|
|
|
Debt repaid |
|
(1,807 |
) |
|
(1,664 |
) |
Dividends paid |
|
(1,588 |
) |
|
(1,588 |
) |
Debt issued |
|
800 |
|
|
1,599 |
|
Net issued/(paid) of commercial paper |
|
297 |
|
|
19 |
|
Share repurchase programs |
|
(100 |
) |
|
(705 |
) |
Other - net |
|
30 |
|
|
11 |
|
Cash used in financing activities |
|
(2,368 |
) |
|
(2,328 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
73 |
|
|
(144 |
) |
Cash, cash equivalents, and restricted cash at beginning of year |
|
1,074 |
|
|
987 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
1,147 |
|
$ |
843 |
|
Free Cash Flow** |
|
|
|
|
|
|
Cash provided by operating activities |
$ |
4,033 |
|
$ |
3,858 |
|
Cash used in investing activities |
|
(1,592 |
) |
|
(1,674 |
) |
Dividends paid |
|
(1,588 |
) |
|
(1,588 |
) |
Free cash flow |
$ |
853 |
|
$ |
596 |
|
* |
Capital investments include locomotive and freight car early lease buyouts of |
|
|
** |
Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing. |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Operating and Performance Statistics (unaudited) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
2nd Quarter |
|
|
Year-to-Date |
|
|||||||||||||||||||
For the Periods Ended June 30, |
|
2024 |
|
|
2023 |
|
|
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|||||||
Operating/Performance Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity (daily miles per car)* |
|
|
201 |
|
|
|
202 |
|
|
|
- |
% |
|
|
202 |
|
|
|
199 |
|
|
|
2 |
% |
|
Average train speed (miles per hour)* |
|
|
23.3 |
|
|
|
24.1 |
|
|
|
(3 |
) |
|
|
23.7 |
|
|
|
24.1 |
|
|
|
(2 |
) |
|
Average terminal dwell time (hours)* |
|
|
22.7 |
|
|
|
23.3 |
|
|
|
(3 |
) |
|
|
23.1 |
|
|
|
23.6 |
|
|
|
(2 |
) |
|
Locomotive productivity (GTMs per horsepower day) |
|
|
134 |
|
|
|
126 |
|
|
|
6 |
|
|
|
134 |
|
|
|
125 |
|
|
|
7 |
|
|
Gross ton-miles (GTMs) (millions) |
|
|
206,806 |
|
|
|
207,606 |
|
|
|
- |
|
|
|
412,835 |
|
|
|
414,254 |
|
|
|
- |
|
|
Train length (feet) |
|
|
9,544 |
|
|
|
9,316 |
|
|
|
2 |
|
|
|
9,415 |
|
|
|
9,238 |
|
|
|
2 |
|
|
Intermodal service performance index (%) |
|
|
93 |
|
|
|
89 |
|
|
|
4 |
|
pts |
|
93 |
|
|
|
85 |
|
|
|
8 |
|
pts |
Manifest/Automotive service performance index (%) |
|
|
84 |
|
|
|
84 |
|
|
|
- |
|
pts |
|
85 |
|
|
|
82 |
|
|
|
3 |
|
pts |
Intermodal car trip plan compliance (%)** |
|
|
83 |
|
|
|
79 |
|
|
|
4 |
|
pts |
|
83 |
|
|
|
76 |
|
|
|
7 |
|
pts |
Manifest/Automotive car trip plan compliance (%)** |
|
|
64 |
|
|
|
64 |
|
|
|
- |
|
pts |
|
65 |
|
|
|
63 |
|
|
|
2 |
|
pts |
Workforce productivity (car miles per employee) |
|
|
1,031 |
|
|
|
978 |
|
|
|
5 |
|
|
|
1,015 |
|
|
|
983 |
|
|
|
3 |
|
|
Total employees (average) |
|
|
30,556 |
|
|
|
32,243 |
|
|
|
(5 |
) |
|
|
30,804 |
|
|
|
31,888 |
|
|
|
(3 |
) |
Locomotive Fuel Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per gallon consumed |
|
$ |
2.73 |
|
|
$ |
2.86 |
|
|
|
(5 |
)% |
|
$ |
2.77 |
|
|
$ |
3.04 |
|
|
|
(9 |
)% |
Fuel consumed in gallons (millions) |
|
|
223 |
|
|
|
226 |
|
|
|
(1 |
) |
|
|
453 |
|
|
|
458 |
|
|
|
(1 |
) |
Fuel consumption rate*** |
|
|
1.080 |
|
|
|
1.086 |
|
|
|
(1 |
) |
|
|
1.097 |
|
|
|
1.105 |
|
|
|
(1 |
) |
Revenue Ton-Miles (Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain products |
|
|
19,995 |
|
|
|
18,858 |
|
|
|
6 |
% |
|
|
40,644 |
|
|
|
38,902 |
|
|
|
4 |
% |
Fertilizer |
|
|
3,570 |
|
|
|
2,953 |
|
|
|
21 |
|
|
|
6,857 |
|
|
|
6,089 |
|
|
|
13 |
|
Food & refrigerated |
|
|
4,693 |
|
|
|
4,514 |
|
|
|
4 |
|
|
|
9,610 |
|
|
|
9,057 |
|
|
|
6 |
|
Coal & renewables |
|
|
16,351 |
|
|
|
20,864 |
|
|
|
(22 |
) |
|
|
35,234 |
|
|
|
43,361 |
|
|
|
(19 |
) |
Bulk |
|
|
44,609 |
|
|
|
47,189 |
|
|
|
(5 |
) |
|
|
92,345 |
|
|
|
97,409 |
|
|
|
(5 |
) |
Industrial chemicals & plastics |
|
|
8,069 |
|
|
|
7,214 |
|
|
|
12 |
|
|
|
15,496 |
|
|
|
14,305 |
|
|
|
8 |
|
Metals & minerals |
|
|
8,301 |
|
|
|
9,209 |
|
|
|
(10 |
) |
|
|
16,366 |
|
|
|
18,156 |
|
|
|
(10 |
) |
Forest products |
|
|
5,663 |
|
|
|
5,815 |
|
|
|
(3 |
) |
|
|
11,243 |
|
|
|
11,364 |
|
|
|
(1 |
) |
Energy & specialized markets |
|
|
10,229 |
|
|
|
9,817 |
|
|
|
4 |
|
|
|
20,815 |
|
|
|
19,316 |
|
|
|
8 |
|
Industrial |
|
|
32,262 |
|
|
|
32,055 |
|
|
|
1 |
|
|
|
63,920 |
|
|
|
63,141 |
|
|
|
1 |
|
Automotive |
|
|
4,879 |
|
|
|
4,687 |
|
|
|
4 |
|
|
|
9,415 |
|
|
|
9,087 |
|
|
|
4 |
|
Intermodal |
|
|
18,242 |
|
|
|
17,567 |
|
|
|
4 |
|
|
|
35,577 |
|
|
|
35,687 |
|
|
|
- |
|
Premium |
|
|
23,121 |
|
|
|
22,254 |
|
|
|
4 |
|
|
|
44,992 |
|
|
|
44,774 |
|
|
|
- |
|
Total |
|
|
99,992 |
|
|
|
101,498 |
|
|
|
(1 |
)% |
|
|
201,257 |
|
|
|
205,324 |
|
|
|
(2 |
)% |
* |
Surface Transportation Board (STB) reported performance measures. |
|
|
** |
Methodology used to report is not comparable with the reporting to the STB under docket number EP 770. |
|
|
*** |
Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated Statements of Income (unaudited) |
||||||||||||
|
|
|
|
|||||||||
|
|
2024 |
|
|||||||||
Millions, Except Per Share Amounts and Percentages, |
|
1st Qtr |
|
|
2nd Qtr |
|
|
Year-to-Date |
||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Freight revenues |
|
$ |
5,616 |
|
|
$ |
5,638 |
|
|
$ |
11,254 |
|
Other revenues |
|
|
415 |
|
|
|
369 |
|
|
|
784 |
|
Total operating revenues |
|
|
6,031 |
|
|
|
6,007 |
|
|
|
12,038 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
1,223 |
|
|
|
1,187 |
|
|
|
2,410 |
|
Fuel |
|
|
658 |
|
|
|
625 |
|
|
|
1,283 |
|
Purchased services and materials |
|
|
613 |
|
|
|
644 |
|
|
|
1,257 |
|
Depreciation |
|
|
594 |
|
|
|
596 |
|
|
|
1,190 |
|
Equipment and other rents |
|
|
216 |
|
|
|
219 |
|
|
|
435 |
|
Other |
|
|
355 |
|
|
|
336 |
|
|
|
691 |
|
Total operating expenses |
|
|
3,659 |
|
|
|
3,607 |
|
|
|
7,266 |
|
Operating Income |
|
|
2,372 |
|
|
|
2,400 |
|
|
|
4,772 |
|
Other income, net |
|
|
92 |
|
|
|
103 |
|
|
|
195 |
|
Interest expense |
|
|
(324 |
) |
|
|
(319 |
) |
|
|
(643 |
) |
Income before income taxes |
|
|
2,140 |
|
|
|
2,184 |
|
|
|
4,324 |
|
Income tax expense |
|
|
(499 |
) |
|
|
(511 |
) |
|
|
(1,010 |
) |
Net Income |
|
$ |
1,641 |
|
|
$ |
1,673 |
|
|
$ |
3,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$ |
2.69 |
|
|
$ |
2.75 |
|
|
$ |
5.44 |
|
Earnings per share - diluted |
|
$ |
2.69 |
|
|
$ |
2.74 |
|
|
$ |
5.43 |
|
Weighted average number of shares - basic |
|
|
609.2 |
|
|
|
609.4 |
|
|
|
609.3 |
|
Weighted average number of shares - diluted |
|
|
610.2 |
|
|
|
610.3 |
|
|
|
610.3 |
|
Dividends declared per share |
|
$ |
1.30 |
|
|
$ |
1.30 |
|
|
$ |
2.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratio |
|
|
60.7 |
% |
|
|
60.0 |
% |
|
|
60.4 |
% |
Effective Tax Rate |
|
|
23.3 |
% |
|
|
23.4 |
% |
|
|
23.4 |
% |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Freight Revenue Statistics (unaudited) |
|||||||||
|
|
|
|||||||
|
2024 |
|
|||||||
|
1st Qtr |
|
2nd Qtr |
|
Year-to-Date |
||||
Freight Revenues (Millions) |
|
|
|
|
|
|
|
|
|
Grain & grain products |
$ |
943 |
|
$ |
901 |
|
$ |
1,844 |
|
Fertilizer |
|
201 |
|
|
203 |
|
|
404 |
|
Food & refrigerated |
|
285 |
|
|
278 |
|
|
563 |
|
Coal & renewables |
|
388 |
|
|
339 |
|
|
727 |
|
Bulk |
|
1,817 |
|
|
1,721 |
|
|
3,538 |
|
Industrial chemicals & plastics |
|
572 |
|
|
593 |
|
|
1,165 |
|
Metals & minerals |
|
515 |
|
|
530 |
|
|
1,045 |
|
Forest products |
|
338 |
|
|
342 |
|
|
680 |
|
Energy & specialized markets |
|
679 |
|
|
658 |
|
|
1,337 |
|
Industrial |
|
2,104 |
|
|
2,123 |
|
|
4,227 |
|
Automotive |
|
611 |
|
|
659 |
|
|
1,270 |
|
Intermodal |
|
1,084 |
|
|
1,135 |
|
|
2,219 |
|
Premium |
|
1,695 |
|
|
1,794 |
|
|
3,489 |
|
Total |
$ |
5,616 |
|
$ |
5,638 |
|
$ |
11,254 |
|
Revenue Carloads (Thousands) |
|
|
|
|
|
|
|
|
|
Grain & grain products |
|
210 |
|
|
200 |
|
|
410 |
|
Fertilizer |
|
47 |
|
|
62 |
|
|
109 |
|
Food & refrigerated |
|
46 |
|
|
46 |
|
|
92 |
|
Coal & renewables |
|
177 |
|
|
158 |
|
|
335 |
|
Bulk |
|
480 |
|
|
466 |
|
|
946 |
|
Industrial chemicals & plastics |
|
164 |
|
|
169 |
|
|
333 |
|
Metals & minerals |
|
170 |
|
|
184 |
|
|
354 |
|
Forest products |
|
53 |
|
|
55 |
|
|
108 |
|
Energy & specialized markets |
|
154 |
|
|
147 |
|
|
301 |
|
Industrial |
|
541 |
|
|
555 |
|
|
1,096 |
|
Automotive |
|
207 |
|
|
218 |
|
|
425 |
|
Intermodal [a] |
|
739 |
|
|
798 |
|
|
1,537 |
|
Premium |
|
946 |
|
|
1,016 |
|
|
1,962 |
|
Total |
|
1,967 |
|
|
2,037 |
|
|
4,004 |
|
Average Revenue per Car |
|
|
|
|
|
|
|
|
|
Grain & grain products |
$ |
4,494 |
|
$ |
4,493 |
|
$ |
4,493 |
|
Fertilizer |
|
4,271 |
|
|
3,311 |
|
|
3,727 |
|
Food & refrigerated |
|
6,231 |
|
|
5,943 |
|
|
6,086 |
|
Coal & renewables |
|
2,189 |
|
|
2,156 |
|
|
2,173 |
|
Bulk |
|
3,787 |
|
|
3,692 |
|
|
3,740 |
|
Industrial chemicals & plastics |
|
3,486 |
|
|
3,507 |
|
|
3,497 |
|
Metals & minerals |
|
3,030 |
|
|
2,885 |
|
|
2,955 |
|
Forest products |
|
6,297 |
|
|
6,249 |
|
|
6,272 |
|
Energy & specialized markets |
|
4,416 |
|
|
4,462 |
|
|
4,439 |
|
Industrial |
|
3,886 |
|
|
3,825 |
|
|
3,855 |
|
Automotive |
|
2,947 |
|
|
3,033 |
|
|
2,991 |
|
Intermodal [a] |
|
1,468 |
|
|
1,421 |
|
|
1,444 |
|
Premium |
|
1,792 |
|
|
1,766 |
|
|
1,779 |
|
Average |
$ |
2,855 |
|
$ |
2,768 |
|
$ |
2,811 |
|
[a] |
For intermodal shipments each container or trailer equals one carload. |
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures Reconciliation to GAAP (unaudited) |
||||||||
|
||||||||
Debt / Net Income |
|
|
|
|
|
|
|
|
Millions, Except Ratios |
|
Jun. 30, |
|
|
Dec. 31, |
|
||
for the Trailing Twelve Months Ended [a] |
|
2024 |
|
|
2023 |
|
||
Debt |
|
$ |
31,892 |
|
|
$ |
32,579 |
|
Net income |
|
|
6,494 |
|
|
|
6,379 |
|
Debt / net income |
|
|
4.9 |
|
|
|
5.1 |
|
Adjusted Debt / Adjusted EBITDA* |
|
|
|
|
|
|
|
|
Millions, Except Ratios |
|
Jun. 30, |
|
|
Dec. 31, |
|
||
for the Trailing Twelve Months Ended [a] |
|
2024 |
|
|
2023 |
|
||
Net income |
|
$ |
6,494 |
|
|
$ |
6,379 |
|
Add: |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
1,963 |
|
|
|
1,854 |
|
Depreciation |
|
|
2,359 |
|
|
|
2,318 |
|
Interest expense |
|
|
1,308 |
|
|
|
1,340 |
|
EBITDA |
|
$ |
12,124 |
|
|
$ |
11,891 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Other income, net |
|
|
(409 |
) |
|
|
(491 |
) |
Interest on operating lease liabilities [b] |
|
|
48 |
|
|
|
58 |
|
Adjusted EBITDA |
|
$ |
11,763 |
|
|
$ |
11,458 |
|
Debt |
|
$ |
31,892 |
|
|
$ |
32,579 |
|
Operating lease liabilities |
|
|
1,305 |
|
|
|
1,600 |
|
Adjusted debt |
|
$ |
33,197 |
|
|
$ |
34,179 |
|
Adjusted debt / adjusted EBITDA |
|
|
2.8 |
|
|
|
3.0 |
|
[a] |
The trailing twelve months income statement information ended June 30, 2024, is recalculated by taking the twelve months ended December 31, 2023, subtracting the six months ended June 30, 2023, and adding the six months ended June 30, 2024. |
|
|
[b] |
Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases. |
|
|
* |
Adjusted debt (total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB (other post retirement benefit) obligations) to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on present value of operating leases) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to adjusted EBITDA should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. The most comparable GAAP measure is debt to net income ratio. The tables above provide reconciliations from net income to adjusted EBITDA, debt to adjusted debt, and debt to net income to adjusted debt to adjusted EBITDA. At June 30, 2024, and December 31, 2023, the incremental borrowing rate on operating leases was |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725524681/en/
Union Pacific Investor contact: Brad Stock at 402-544-4227 or bkstock@up.com
Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com
Source: Union Pacific Corporation
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