UNP Union Pacific Corp

OMAHA, Neb., April 27, 2017 /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) today reported 2017 first quarter net income of nearly $1.1 billion, or a first quarter record $1.32 per diluted share.  This compares to about $1.0 billion, or $1.16 per diluted share, in the first quarter 2016.

First Quarter Results

• Diluted earnings per share of $1.32 increased 14 percent.
• Operating income totaled $1.8 billion, up 6 percent.
• Operating ratio of 65.1 percent was flat.

"This is a very solid start to the year, especially given the weather challenges we encountered on the Western part of our network earlier in the quarter," said Lance Fritz, Union Pacific chairman, president and chief executive officer.  "In keeping with our strategic value tracks, our engaged employees worked safely and productively under very difficult circumstances during the quarter.  As a result, operations were restored quickly as we continued to focus on providing an excellent customer experience."

First Quarter Summary

Operating revenue of $5.1 billion was up 6 percent in the first quarter 2017 compared to the first quarter 2016.  First quarter business volumes, as measured by total revenue carloads, increased 2 percent compared to 2016.  Volume increases in coal, agricultural products and industrial products more than offset declines in chemicals and automotive.  Intermodal volume was flat compared to 2016 as increases in international intermodal offset declines in domestic shipments.  In addition:

• Quarterly freight revenue improved 6 percent compared to the first quarter 2016, as volume growth, increased fuel surcharge revenue, core pricing gains and positive mix all contributed to the increase.
• Union Pacific's 65.1 percent operating ratio was flat compared to the first quarter 2016.  Higher fuel prices negatively impacted the operating ratio by about 1.3 points. 
• The $1.75 per gallon average quarterly diesel fuel price in the first quarter 2017 was 40 percent higher than the first quarter 2016.
• Quarterly train speed, as reported to the Association of American Railroads, was 25.7 mph, 6 percent slower than the first quarter 2016.
• Union Pacific's reportable personal injury rate of 0.89 per 200,000 employee-hours increased from the first quarter record of 0.75 achieved in 2016.
• The Company repurchased 7.5 million shares in the first quarter 2017 at an aggregate cost of $802 million.

Summary of First Quarter Freight Revenues

• Automotive down 1 percent
• Chemicals up 1 percent
• Intermodal up 3 percent
• Agricultural Products up 7 percent
• Industrial Products up 9 percent
• Coal up 25 percent

2017 Outlook

"With a solid first quarter performance behind us, we will continue to press ahead with our volume, pricing, and productivity initiatives through the remainder of the year," Fritz said.  "Our six-track value strategy will keep us intensely focused on effectively leveraging volume growth, while providing our customers an excellent experience and our shareholders a solid return on investment."

First Quarter 2017 Earnings Conference Call

Union Pacific will host its first quarter 2017 earnings release presentation live over the Internet and via teleconference on Thursday, April 27, 2017 at 8:45 a.m. Eastern Time.  The presentation will be webcast live over the internet on Union Pacific's website at www.up.com/investor.  Alternatively, the webcast can be accessed directly through the following link.  Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).

ABOUT UNION PACIFIC

Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2016, Union Pacific invested approximately $34 billion in its network and operations to support America's transportation infrastructure.  The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.

Supplemental financial information is attached.

This presentation and related materials contain statements about the Company's future that are not statements of historical fact, including specifically the statements regarding the Company's expectations with respect to economic conditions and demand levels; its ability to generate financial returns, improve network performance and customer service; implementation of corporate strategies; and providing excellent service to its customers and returns to its shareholders.  These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements also generally include, without limitation, information or statements regarding:  projections, predictions, expectations, estimates or forecasts as to the Company's and its subsidiaries' business, financial, and operational results, and future economic performance;  and management's beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved.  Forward-looking information, including expectations regarding operational and financial improvements and the Company's future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement.  Important factors, including risk factors, could affect the Company's and its subsidiaries' future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements.  Information regarding risk factors and other cautionary information are available in the Company's Annual Report on Form 10-K for 2016, which was filed with the SEC on February 3, 2017.  The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).

Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made.  The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.  If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements.  References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/union-pacific-reports-first-quarter-2017-results-300446883.html

SOURCE Union Pacific Corporation