July 26, 2021 - TRA Newswire -
Union Pacific Corporation's 2021 second quarter net income came in at $1.8 billion, compared to $1.1 billion in the second quarter 2020 when the Covid-19 pandemic raged. Adjusted earnings were $2.72 a share for the second quarter, beating analysts estimates of $2.53 a share. Last year while the pandemic was in the upswing and freight movements plummeted, adjusted earnings came in at $1.67 a share.
"The Union Pacific team leveraged volume growth, core pricing gains, and productivity to produce record quarterly results," said Lance Fritz, Union Pacific chairman, president, and chief executive officer. "Beyond our strong financial performance, we also made progress on our goal to reduce our carbon footprint, which includes a 3% improvement in our fuel consumption rate."
Fritz went on the say "Importantly, these strong results were achieved in a challenging environment as our rail network continues to be impacted by supply chain disruptions, particularly in the Intermodal space. As we move into the second half of 2021, we will continue working with our customers and the broader supply chain to increase fluidity and efficiently handle the strong demand for freight transportation."
While Q2 was upbeat, mother nature and a growing economy have recently hit UP with several blows. Several of its main western lines had been closed down by raging forest fires and one train derailed this past week in a washout from heavy rains in Utah. Meantime the railroad is juggling a cargo surge at ports.
Last week Union Pacific halted movements of containers at Los Angeles and Long Beach ports in California for about a week to help the railroad clear a backlog of cargo at its Chicago area railyards. Too many empty containers in the wrong place has both the railroad and shippers scrambling to move commodities.
Financial Results: Quarterly Records for Operating Ratio, Operating Income, Net Income, and Earnings Per Share
Second Quarter 2021 Compared to Second Quarter 2020
Operating revenue of $5.5 billion was up 30%.
Business volumes, as measured by total revenue carloads, increased 22%.
Union Pacific's 55.1% operating ratio improved 590 basis points. Higher fuel prices negatively impacted the operating ratio by 210 basis points.
Operating Income of $2.5 billion was up 50%.
The company repurchased 12.2 million shares in second quarter 2021 at an aggregate cost of $2.7 billion.
Operating Performance: Quarterly Records for Workforce Productivity and Train Length; Second Quarter Records for Locomotive Productivity and Fuel Consumption Rate
Second Quarter 2021 Compared to Second Quarter 2020
Quarterly freight car velocity was 213 daily miles per car, a 6% decline.
Quarterly locomotive productivity was 140 gross ton-miles per horsepower day, a 3% improvement.
Average maximum train length was 9,410 feet, a 9% increase.
Fuel consumption rate, measured in gallons of fuel per thousand gross ton-miles (GTMs), improved 3%.
Quarterly workforce productivity was 1,060 car miles per employee, a 22% improvement.
Union Pacific's first half reportable personal injury rate deteriorated to 0.95 per 200,000 employee-hours compared to 0.83 for first half 2020.
Union Pacific Corporation's 2021 second quarter net income came in at $1.8 billion, compared to $1.1 billion in the second quarter 2020 when the Covid-19 pandemic raged. Adjusted earnings were $2.72 a share for the second quarter, beating analysts estimates of $2.53 a share. Last year while the pandemic was in the upswing and freight movements plummeted, adjusted earnings came in at $1.67 a share.
"The Union Pacific team leveraged volume growth, core pricing gains, and productivity to produce record quarterly results," said Lance Fritz, Union Pacific chairman, president, and chief executive officer. "Beyond our strong financial performance, we also made progress on our goal to reduce our carbon footprint, which includes a 3% improvement in our fuel consumption rate."
Fritz went on the say "Importantly, these strong results were achieved in a challenging environment as our rail network continues to be impacted by supply chain disruptions, particularly in the Intermodal space. As we move into the second half of 2021, we will continue working with our customers and the broader supply chain to increase fluidity and efficiently handle the strong demand for freight transportation."
While Q2 was upbeat, mother nature and a growing economy have recently hit UP with several blows. Several of its main western lines had been closed down by raging forest fires and one train derailed this past week in a washout from heavy rains in Utah. Meantime the railroad is juggling a cargo surge at ports.
Last week Union Pacific halted movements of containers at Los Angeles and Long Beach ports in California for about a week to help the railroad clear a backlog of cargo at its Chicago area railyards. Too many empty containers in the wrong place has both the railroad and shippers scrambling to move commodities.
Financial Results: Quarterly Records for Operating Ratio, Operating Income, Net Income, and Earnings Per Share
Second Quarter 2021 Compared to Second Quarter 2020
Operating revenue of $5.5 billion was up 30%.
Business volumes, as measured by total revenue carloads, increased 22%.
Union Pacific's 55.1% operating ratio improved 590 basis points. Higher fuel prices negatively impacted the operating ratio by 210 basis points.
Operating Income of $2.5 billion was up 50%.
The company repurchased 12.2 million shares in second quarter 2021 at an aggregate cost of $2.7 billion.
Operating Performance: Quarterly Records for Workforce Productivity and Train Length; Second Quarter Records for Locomotive Productivity and Fuel Consumption Rate
Second Quarter 2021 Compared to Second Quarter 2020
Quarterly freight car velocity was 213 daily miles per car, a 6% decline.
Quarterly locomotive productivity was 140 gross ton-miles per horsepower day, a 3% improvement.
Average maximum train length was 9,410 feet, a 9% increase.
Fuel consumption rate, measured in gallons of fuel per thousand gross ton-miles (GTMs), improved 3%.
Quarterly workforce productivity was 1,060 car miles per employee, a 22% improvement.
Union Pacific's first half reportable personal injury rate deteriorated to 0.95 per 200,000 employee-hours compared to 0.83 for first half 2020.