July 24, 2018 - TRA Newswire & ProgressiveRailroading.com -
Second Quarter Results for Union Pacific
Diluted earnings per share of $1.98 increased 37 percent
Operating income totaled $2.1 billion, up 5 percent
Operating ratio of 63.0 percent, up 1.1 points
"Looking to the remainder of the year, we expect the strong business environment to continue as we regain our productivity momentum and improve the value proposition for all of our stakeholders," said Lance Fritz, Union Pacific chairman, president and chief executive officer.
Second Quarter Results for Kansas City Southern
Diluted earnings per share were $1.45, up 14 percent, and record adjusted diluted earnings per share of $1.54
Record operating income of $246 million, up 3 percent
Record revenue of $682 million, up 4 percent
Moving into the second half of 2018 and into 2019, the company expects "volume growth to accelerate, benefiting from a strong economy, network capacity investments and commercial opportunities that are unique to the KCS franchise", according to President and Chief Executive Officer Patrick Ottensmeyer.
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Union Pacific Corporation reported 2018 second quarter net income of $1.5 billion, or a second quarter record $1.98 per diluted share. This compares to $1.2 billion, or $1.45 per diluted share, in the second quarter 2017.
"Overall, I am pleased with the effort put forth by the entire Union Pacific team; however, I recognize the results could have been better," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "Network performance improved significantly coming out of the First Quarter, but a tunnel outage and train-crew shortages created a headwind in June. I am confident we have the right plans in place to drive improvement in our operations and a better service experience for our customers."
UP Operating revenue of $5.7 billion was up 8 percent in the second quarter 2018 compared to the second quarter 2017. Second quarter carloads increased 4 percent compared to 2017. Volume increases in industrial and premium more than offset declines in agricultural products and energy. In addition:
Quarterly freight revenue improved 8 percent compared to the second quarter 2017, as volume growth, increased fuel surcharge revenue, and core pricing gains were partially offset by negative mix of traffic.
Union Pacific's 63.0 percent operating ratio increased 1.1 points compared to the second quarter 2017.
The $2.30 per gallon average quarterly diesel fuel price in the second quarter 2018 was 36 percent higher than the second quarter 2017.
Quarterly train speed, as reported to the Association of American Railroads, was 24.7 mph, 3 percent slower than the second quarter 2017.
Union Pacific's first half reportable personal injury rate of 0.76 per 200,000 employee hours was flat compared to the first half of 2017.
The Company repurchased 33.2 million shares in the second quarter 2018, including 19.9 million shares received as part of an accelerated share repurchase program.
Summary of Second Quarter Union Pacific Freight Revenues
Agricultural Products up 5 percent
Energy up 5 percent
Industrial up 8 percent
Premium up 14 percent
Kansas City Southern reported record second-quarter results that topped Wall Street estimates for quarterly profit.
KCS posted record revenue of $682 million, up 4 percent, and record operating income of $246 million, up 3 percent, compared with second-quarter 2017. Diluted earnings per share were $1.45, up 14 percent, and record adjusted diluted earnings per share of $1.54, up 16 percent compared with the same period a year ago, KCS officials said in a press release.
Second-quarter net income rose 11 percent to $149 million from $134 million a year ago. KCS posted operating expenses of $437 million, a 5 percent increase from a year ago, and an operating ratio of 64 percent, or 0.5 points higher than in second-quarter 2017.
Overall, carload volume in the quarter ticked up 1 percent from a year ago. Revenue increased in five commodity groups, led by a 17 percent increase in automotive and a 14 percent increase in chemicals and petroleum. Intermodal and industrial and consumer categories both grew by 3 percent; agricultural and minerals climbed 1 percent.
However, those increases were partially offset by a 20 percent decline in energy, driven primarily by a reduction in utility coal volume due to the closing of a Texas utility in January.
"Supported by the strength and diversity of our franchise, KCS achieved record quarterly financial results," said President and Chief Executive Officer Patrick Ottensmeyer. "We persevered through volume headwinds from utility coal and a challenging FX environment impacting Mexico international intermodal business, to deliver top-line growth from five of six business units, record franchise cross-border revenue and record adjusted diluted earnings per share."
Second Quarter Results for Union Pacific
Diluted earnings per share of $1.98 increased 37 percent
Operating income totaled $2.1 billion, up 5 percent
Operating ratio of 63.0 percent, up 1.1 points
"Looking to the remainder of the year, we expect the strong business environment to continue as we regain our productivity momentum and improve the value proposition for all of our stakeholders," said Lance Fritz, Union Pacific chairman, president and chief executive officer.
Second Quarter Results for Kansas City Southern
Diluted earnings per share were $1.45, up 14 percent, and record adjusted diluted earnings per share of $1.54
Record operating income of $246 million, up 3 percent
Record revenue of $682 million, up 4 percent
Moving into the second half of 2018 and into 2019, the company expects "volume growth to accelerate, benefiting from a strong economy, network capacity investments and commercial opportunities that are unique to the KCS franchise", according to President and Chief Executive Officer Patrick Ottensmeyer.
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Union Pacific Corporation reported 2018 second quarter net income of $1.5 billion, or a second quarter record $1.98 per diluted share. This compares to $1.2 billion, or $1.45 per diluted share, in the second quarter 2017.
"Overall, I am pleased with the effort put forth by the entire Union Pacific team; however, I recognize the results could have been better," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "Network performance improved significantly coming out of the First Quarter, but a tunnel outage and train-crew shortages created a headwind in June. I am confident we have the right plans in place to drive improvement in our operations and a better service experience for our customers."
UP Operating revenue of $5.7 billion was up 8 percent in the second quarter 2018 compared to the second quarter 2017. Second quarter carloads increased 4 percent compared to 2017. Volume increases in industrial and premium more than offset declines in agricultural products and energy. In addition:
Quarterly freight revenue improved 8 percent compared to the second quarter 2017, as volume growth, increased fuel surcharge revenue, and core pricing gains were partially offset by negative mix of traffic.
Union Pacific's 63.0 percent operating ratio increased 1.1 points compared to the second quarter 2017.
The $2.30 per gallon average quarterly diesel fuel price in the second quarter 2018 was 36 percent higher than the second quarter 2017.
Quarterly train speed, as reported to the Association of American Railroads, was 24.7 mph, 3 percent slower than the second quarter 2017.
Union Pacific's first half reportable personal injury rate of 0.76 per 200,000 employee hours was flat compared to the first half of 2017.
The Company repurchased 33.2 million shares in the second quarter 2018, including 19.9 million shares received as part of an accelerated share repurchase program.
Summary of Second Quarter Union Pacific Freight Revenues
Agricultural Products up 5 percent
Energy up 5 percent
Industrial up 8 percent
Premium up 14 percent
Kansas City Southern reported record second-quarter results that topped Wall Street estimates for quarterly profit.
KCS posted record revenue of $682 million, up 4 percent, and record operating income of $246 million, up 3 percent, compared with second-quarter 2017. Diluted earnings per share were $1.45, up 14 percent, and record adjusted diluted earnings per share of $1.54, up 16 percent compared with the same period a year ago, KCS officials said in a press release.
Second-quarter net income rose 11 percent to $149 million from $134 million a year ago. KCS posted operating expenses of $437 million, a 5 percent increase from a year ago, and an operating ratio of 64 percent, or 0.5 points higher than in second-quarter 2017.
Overall, carload volume in the quarter ticked up 1 percent from a year ago. Revenue increased in five commodity groups, led by a 17 percent increase in automotive and a 14 percent increase in chemicals and petroleum. Intermodal and industrial and consumer categories both grew by 3 percent; agricultural and minerals climbed 1 percent.
However, those increases were partially offset by a 20 percent decline in energy, driven primarily by a reduction in utility coal volume due to the closing of a Texas utility in January.
"Supported by the strength and diversity of our franchise, KCS achieved record quarterly financial results," said President and Chief Executive Officer Patrick Ottensmeyer. "We persevered through volume headwinds from utility coal and a challenging FX environment impacting Mexico international intermodal business, to deliver top-line growth from five of six business units, record franchise cross-border revenue and record adjusted diluted earnings per share."