April 26, 2018 - TRA Newswire -














Union Pacific Corporation (NYSE: UNP) today reported 2018 first quarter net income of $1.3 billion, or a first-quarter record $1.68 per diluted share. This compares to about $1.1 billion, or $1.32 per diluted share, in the first quarter 2017.

First Quarter Results

Diluted earnings per share of $1.68 increased 27 percent.
Operating income totaled $1.9 billion, up 8 percent.
Operating ratio of 64.6 percent, improved 0.6 points (see footnote).


"Our solid first quarter results were a direct reflection of the tremendous effort put forth by our entire workforce, and had it not been for some network congestion it would have been even better," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "I am encouraged by the work we are doing to quickly regain superior levels of service and efficiency."
First Quarter Summary
Operating revenue of $5.5 billion was up 7 percent in the first quarter 2018 compared to the first quarter 2017. First quarter business volumes, as measured by total revenue carloads, increased 2 percent compared to 2017. Volume increases in energy, industrial and premium more than offset a decline in agricultural products. In addition:

Quarterly freight revenue improved 7 percent compared to the first quarter 2017, as volume growth, increased fuel surcharge revenue, core pricing gains and positive mix all contributed to the increase.
Union Pacific's 64.6 percent operating ratio improved 0.6 points (see footnote) compared to the first quarter 2017. Higher fuel prices negatively impacted the operating ratio by about 0.2 points.
The $2.13 per gallon average quarterly diesel fuel price in the first quarter 2018 was 22 percent higher than the first quarter 2017.
Quarterly train speed, as reported to the Association of American Railroads, was 24.8 mph, 4 percent slower than the first quarter 2017.
Union Pacific's reportable personal injury rate of 0.74 per 200,000 employee-hours was a first quarter record, improving 17 percent compared to the first quarter 2017.
The Company repurchased 9.3 million shares in the first quarter 2018 at an aggregate cost of $1.2 billion.
Union Pacific redeemed $155 million of outstanding debentures and mortgage bonds, resulting in an approximate 8 cent reduction to diluted earnings per share.

Summary of First Quarter Freight Revenues

Agricultural Products flat
Industrial up 6 percent
Premium up 7 percent
Energy up 15 percent

2018 Outlook
"We are pleased with the improvement we have seen in recent weeks and are confident in the plan we have in place to continue building on the progress already made," Fritz said. "With the economy favoring a number of our market segments, we are well positioned to benefit from another year of positive volume growth and solid core pricing gains."