Omaha, Neb., April 18, 2019
Union Pacific Corporation (NYSE: UNP) today reported 2019 first quarter net income of $1.4 billion, or $1.93 per diluted share. This compares to $1.3 billion, or $1.68 per diluted share, in the first quarter 2018.
First Quarter Results
- Diluted earnings per share of $1.93 increased 15 percent.
- Operating income totaled $2.0 billion, up 1 percent.
- Operating ratio of 63.6 percent, improved 1.0 point.
Lance Fritz, Union Pacific chairman, president and chief executive officer, said:
“We delivered record first quarter financial results driven by improved operating performance, while dealing with significant weather challenges. “Unified Plan 2020 created a more resilient and robust network, allowing us to quickly return to normal operations.”
First Quarter Summary
Operating revenue of $5.4 billion was down 2 percent in the first quarter 2019 compared to the first quarter 2018. First quarter business volumes, as measured by total revenue carloads, decreased 2 percent compared to 2018. Volume increases in industrial and premium were more than offset by declines in energy and agricultural products.
- Quarterly freight revenue declined 2 percent compared to the first quarter 2018, as increased fuel surcharge revenue and core pricing gains were offset by lower volumes and negative mix.
- Union Pacific’s 63.6 percent operating ratio improved 1.0 point compared to the first quarter 2018.
- The $2.07 per gallon average quarterly diesel fuel price in the first quarter 2019 was 3 percent lower than the first quarter 2018.
- Union Pacific recognized a payroll tax refund of $42 million, along with associated interest income of $27 million in the first quarter 2019.
- Quarterly freight car velocity was 185 daily miles per car, a 7 percent improvement compared to the first quarter 2018.
- Union Pacific’s reportable personal injury rate was 0.90 per 200,000 employee-hours, compared to 0.74 in the first quarter 2018.
- The Company repurchased 18.1 million shares in the first quarter 2019 at an aggregate cost of $3.5 billion.
Summary of First Quarter Freight Revenues
- Energy down 16 percent
- Agricultural Products down 3 percent
- Premium up 3 percent
- Industrial up 5 percent
“We look to build on the momentum we had prior to the weather challenges and provide a consistent, reliable service product for our customers, while at the same time improving our operating efficiency,” . “We remain focused on increasing shareholder returns through appropriate capital investments and returning excess cash to shareholders.”