Union Pacific Corp UNP

Industrials Railroads

Union Pacific Corporation is a railroad operating company in the United States. The Company operates through its principal operating company, Union Pacific Railroad Company (UPRR). It connects over 23 states in the western two-thirds of the country and maintains coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico. Its Railroad's diversified business mix includes Bulk, Industrial, and Premium. Its Bulk shipments consist of grain and grain products, fertilizer, food and refrigerated, and coal and renewables. Its Industrial shipments consist of several categories, including construction, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases (LPG), soda ash, and sand. Its Premium shipments include finished automobiles, automotive parts, and merchandise in intermodal containers, both domestic and international.

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Union Pacific Corp

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Post by bc4uon Jan 24, 2013 8:20am

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Post# 20882697

UNION PACIFIC REPORTS RECORD FOURTH QUARTER AND FU

UNION PACIFIC REPORTS RECORD FOURTH QUARTER AND FULL YEAR

Fourth Quarter Records
? Diluted earnings per share of $2.19 improved 10 percent.
? Operating revenues totaled $5.25 billion, up 3 percent.
? Operating income totaled $1.7 billion, up 7 percent.
? Operating ratio of 67.1 percent improved 1.2 points.
2012 Full Year Records
? Diluted earnings per share of $8.27 improved 23 percent.
? Operating revenues totaled $20.9 billion, up 7 percent.
? Operating income totaled $6.7 billion, up 18 percent.
? Operating ratio of 67.8 percent improved 2.9 points.
? Customer satisfaction index reached 93, up 1 point.

Omaha, Neb., January 24, 2013 – Union Pacific Corporation (NYSE: UNP) today
reported 2012 fourth quarter net income of $1 billion, or $2.19 per diluted share,
compared to $964 million, or $1.99 per diluted share, in the fourth quarter 2011.
“Our diverse portfolio of business, solid core pricing gains, and efficient network
operations drove these results despite significantly weaker coal and grain markets,”
said Jack Koraleski, Union Pacific chief executive officer. “Although it was a challenging
year on many fronts, 2012 was Union Pacific’s most profitable year in our 150-year
history. It’s a testament to the strength and diversity of our franchise, the dedication and
commitment of our employees, and our unrelenting focus on creating value for our
customers.”

Fourth Quarter Summary
Fourth quarter business volumes, as measured by total revenue carloads, were
down 2 percent compared to 2011. Volume declines in coal and agricultural products
more than offset growth in chemicals, automotive and intermodal shipments. Volumes
for industrial products were flat versus 2011. Quarterly operating revenue increased 3
percent in the fourth quarter 2012 to $5.25 billion versus $5.1 billion in the fourth quarter
2011. In addition:
? Quarterly freight revenue increased 2 percent compared to the fourth quarter
2011, mainly driven by core pricing gains and fuel surcharge recoveries.
? Union Pacific’s operating ratio of 67.1 percent was a fourth quarter record, 1.2
points better than the fourth quarter 2011.
? Average quarterly diesel fuel prices increased 3 percent to $3.25 per gallon in the
fourth quarter 2012 compared to $3.16 per gallon in the fourth quarter 2011.
? The Customer Satisfaction Index of 93 set a fourth quarter record, 1 point better
than the fourth quarter 2011.
? Quarterly train speed, as reported to the Association of American Railroads, was
26.7 mph, up 4 percent from the fourth quarter 2011.
? The Company repurchased 2.0 million shares in the fourth quarter 2012 at an
average share price of $121.81 and an aggregate cost of $248 million.
Summary of Fourth Quarter Freight Revenues
? Chemicals up 15 percent
? Automotive up 14 percent
? Intermodal up 6 percent
? Industrial Products up 3 percent
? Coal down 7 percent
? Agricultural down 8 percent

2012 Full Year Summary
For the full year 2012, Union Pacific reported net income of $3.9 billion or $8.27 per
diluted share. This compares to $3.3 billion or $6.72 per diluted share in 2011, 20 and
23 percent increases, respectively. Operating revenue totaled a record $20.9 billion
versus $19.6 billion in 2011. Operating income increased 18 percent to $6.7 billion, up
from $5.7 billion in 2011.
? Four of the six business groups reported freight revenue and volume growth in
2012. Freight revenue grew 6 percent to $19.7 billion compared to $18.5 billion in
2011. Carloadings were flat versus 2011.
? UP’s operating ratio in 2012 was 67.8 percent, improving 2.9 points compared to
2011.
? Average diesel fuel prices increased 3 percent to $3.22 per gallon in 2012 from
$3.12 per gallon in 2011.
? The Company increased its quarterly dividend per share by 15 percent to $0.69
cents per share. Total dividends declared for the full year 2012 grew 29 percent
compared to the full year 2011.
? The Company repurchased more than 12.8 million shares in 2012 at an average
share price of $115.01, and an aggregate cost of $1.5 billion.
2013 Outlook
“For 2013, we’re expecting to see many of the same challenges we faced last
year,” Koraleski said. “We’ll also be watching to see what happens in Washington and
how it impacts potential economic growth. That said, we successfully navigated through
the complexities of 2012, and we’ll continue to follow that same strategy going forward.
We’ll remain agile and leverage the strengths of our diverse franchise with a focus on
creating value for our customers and generating strong returns for our shareholders
again in 2013.”