Union Pacific Reports Best-Ever Quarterly Results Union Pacific Reports Best-Ever Quarterly Results
Third Quarter Diluted Earnings per Share Up 18 Percent
Omaha, Neb., October 18, 2012 – Union Pacific Corporation (NYSE: UNP) today reported 2012 third quarter net income of $1 billion, or $2.19 per diluted share, compared to $904 million, or $1.85 per diluted share, in the third quarter 2011.
Third Quarter Records
Diluted earnings per share of $2.19 improved 18 percent.
Operating revenues totaled $5.3 billion, up 5 percent.
Operating income totaled $1.8 billion, up 13 percent.
Operating ratio of 66.6 percent improved 2.5 points.
Customer satisfaction index reached 94, up 3 points.
"Despite a 12 percent decline in coal volumes and significantly weaker steel and scrap metal markets, we generated best-ever financial results across the board," said Jack Koraleski, Union Pacific chief executive officer. "We achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets."
Third Quarter Summary
Third quarter business volumes, as measured by total revenue carloads, were down slightly compared to 2011. Volume growth in chemicals, automotive and intermodal offset declines in shipments of coal, agricultural products and industrial products. Quarterly operating revenue increased 5 percent in the third quarter 2012 to $5.3 billion versus $5.1 billion in the third quarter 2011. In addition:
Quarterly freight revenue increased 4 percent compared to the third quarter 2011, mainly driven by core pricing gains of 5 percent.
Union Pacific's operating ratio of 66.6 percent was an all-time quarterly best, 2.5 points better than the third quarter 2011 and a 0.4 point improvement from the previous record set in the second quarter 2012.
Average quarterly diesel fuel prices were flat at $3.19 per gallon in the third quarter 2012 compared to $3.18 per gallon in the third quarter 2011.
The Customer Satisfaction Index of 94 set an all-time quarterly record and was 3 points better than the third quarter 2011.
Quarterly train speed, as reported to the Association of American Railroads, was 26.1 mph, increasing 6 percent compared to the third quarter 2011. Severe drought conditions in the South negatively impacted train speed in the third quarter of last year.
The Company repurchased 3.1 million shares in the third quarter 2012 at an average share price of $122.13 and an aggregate cost of $378 million.
Summary of Third Quarter Freight Revenues
Chemicals up 17 percent
Automotive up 15 percent
Intermodal up 8 percent
Industrial Products up 2 percent
Agricultural down 4 percent
Coal down 5 percent
2012 Outlook
"As we look out over the next several months, the political and financial challenges in the U.S. and abroad have increased economic uncertainty," Koraleski said. "In this environment, we'll continue to be agile as we were in the third quarter. We'll adapt to changing market conditions and leverage our diverse franchise to provide excellent customer service and generate strong returns for our shareholders."
https://www.uprr.com/newsinfo/releases/financial/2012/1018_3qearnings.shtml
-----------------------------------------
UNP Chart
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=unp&time=6&startdate=1%2F4%2F1999&enddate=1%2F8%2F2012&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=&ma=4&maval=9+15+50&uf=7168&lf=1&lf2=4&lf3=2&type=4&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=0&y=0
Analyst Estimates
https://www.marketwatch.com/investing/stock/unp/analystestimates