- Third quarter earnings per diluted share of $2.75, up 10%
- Third quarter operating income up 11%
- Third quarter net income up 9%
Union Pacific Corporation (NYSE: UNP) today reported 2024 third
quarter net income of $1.7 billion, or $2.75 per diluted share.
This compares to 2023 third quarter net income of $1.5 billion, or
$2.51 per diluted share.
“Our third quarter results demonstrate the success of our
strategy,” said Union Pacific Chief Executive Officer Jim Vena.
“Improved safety and service performance supported solid revenue
growth that we converted into double-digit improvement in third
quarter operating income and earnings per share. The entire Union
Pacific team is focused on delivering for our customers and
shareholders; and is energized to build on these accomplishments to
drive sustainable long-term success.”
Third Quarter Summary: 2024 vs. 2023
Financial Results: Strong Operating Income Growth Driven by
Increased Revenue, Volume, Core Pricing Gains, and Operating
Efficiency
- Operating revenue of $6.1 billion grew 3% driven by increased
volume and core pricing gains, partially offset by business mix and
reduced fuel surcharge revenue.
- Freight revenue excluding fuel surcharge revenue grew 5% as
revenue carloads grew 6%.
- Operating ratio was 60.3%, an improvement of 310 basis points.
Lower quarterly fuel prices positively impacted the operating ratio
120 basis points.
- Operating income of $2.4 billion increased 11%.
Operating Performance: Solid Service and Operational
Efficiency Gains While Handling Volume Growth; Quarterly Record for
Workforce Productivity
- Union Pacific’s year-to-date reportable personal injury and
reportable derailment rates both improved.
- Quarterly freight car velocity improved 5% to 210 daily miles
per car.
- Quarterly locomotive productivity improved 5% to 135 gross
ton-miles (GTMs) per horsepower day.
- Quarterly workforce productivity improved 12% to 1,102 car
miles per employee.
- Fuel consumption rate increased 1% to 1.058, measured in
gallons of fuel per thousand GTMs.
2024 Outlook
Updated
- Fourth quarter results expected to be consistent sequentially
from third quarter while improving year-over-year versus the fourth
quarter 2023.
Affirmed
- Profitability outlook continues positive momentum with strong
service product, improving network efficiency, and solid
pricing
- Share repurchases of ~$1.5 billion in 2024
- Pricing dollars in excess of inflation dollars
- No change to long-term capital allocation strategy
- Capital plan of $3.4 billion
Third Quarter 2024 Earnings Conference Call
Union Pacific will provide a webcast for its third quarter 2024
earnings release presentation live at
https://investor.unionpacific.com and via teleconference on
Thursday, October 24, 2024, at 8:45 a.m. Eastern Time. Participants
may join the conference call by dialing 877-407-8293 (or for
international participants, 201-689-8349).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and
businesses use every day with safe, reliable, and efficient
service. Operating in 23 western states, the company connects its
customers and communities to the global economy. Trains are the
most environmentally responsible way to move freight, helping Union
Pacific protect future generations. More information about Union
Pacific is available at www.up.com.
Supplemental financial information is attached.
This news release and related materials contain statements about
the Company’s future that are not statements of historical fact,
including specifically the statements regarding the potential
impacts of public health crises, including pandemics, epidemics and
the outbreak of other contagious diseases, such as the coronavirus
and its variant strains (COVID); the Russia-Ukraine and
Israel-Hamas wars and other geopolitical tensions in the middle
east, and any impacts on our business operations, financial
results, liquidity, and financial position, and on the world
economy (including customers, employees, and supply chains),
including as a result of fluctuations in volume and carloadings;
expectations as to general macroeconomic conditions, including
slowdowns and recessions, domestically or internationally, and
volatility in interest rates and fuel prices; closing of customer
manufacturing, distribution, or production facilities; expectations
as to operational or service improvements; expectations as to
hiring challenges; availability of employees; expectations
regarding the effectiveness of steps taken or to be taken to
improve operations, service, infrastructure improvements, and
transportation plan modifications; expectations as to cost savings,
revenue growth, and earnings; the time by which goals, targets, or
objectives will be achieved; projections, predictions,
expectations, estimates, or forecasts as to business, financial,
and operational results, future economic performance, and general
economic conditions; proposed new products and services; estimates
of costs relating to environmental remediation and restoration;
estimates and expectations regarding tax matters; expectations that
claims, litigation, environmental costs, commitments, contingent
liabilities, labor negotiations or agreements, cyberattacks or
other matters. These statements are, or will be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of 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 2023, which was filed with the SEC
on February 9, 2024. 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 the Company’s 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.
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Condensed Consolidated Statements of
Income (unaudited)
Millions, Except Per Share Amounts and
3rd Quarter
Year-to-Date
Percentages, For the Periods Ended
September 30,
2024
2023
%
2024
2023
%
Operating Revenues
Freight revenues
$
5,768
$
5,545
4
%
$
17,022
$
16,770
2
%
Other revenues
323
396
(18
)
1,107
1,190
(7
)
Total operating revenues
6,091
5,941
3
18,129
17,960
1
Operating Expenses
Compensation and benefits
1,228
1,201
2
3,638
3,649
-
Purchased services and materials
644
668
(4
)
1,901
1,971
(4
)
Fuel
610
702
(13
)
1,893
2,132
(11
)
Depreciation
602
580
4
1,792
1,729
4
Equipment and other rents
237
235
1
672
718
(6
)
Other
354
378
(6
)
1,045
1,086
(4
)
Total operating expenses
3,675
3,764
(2
)
10,941
11,285
(3
)
Operating Income
2,416
2,177
11
7,188
6,675
8
Other income, net
87
106
(18
)
282
383
(26
)
Interest expense
(314
)
(334
)
(6
)
(957
)
(1,009
)
(5
)
Income before income taxes
2,189
1,949
12
6,513
6,049
8
Income tax expense
(518
)
(421
)
23
(1,528
)
(1,322
)
16
Net Income
$
1,671
$
1,528
9
%
$
4,985
$
4,727
5
%
Share and Per Share
Earnings per share - basic
$
2.75
$
2.51
10
%
$
8.19
$
7.76
6
%
Earnings per share - diluted
$
2.75
$
2.51
10
$
8.18
$
7.75
6
Weighted average number of shares -
basic
607.6
608.7
-
608.7
609.3
-
Weighted average number of shares -
diluted
608.6
609.8
-
609.7
610.3
-
Dividends declared per share
$
1.34
$
1.30
3
$
3.94
$
3.90
1
Operating Ratio
60.3
%
63.4
%
(3.1
)
pts
60.4
%
62.8
%
(2.4
)
pts
Effective Tax Rate
23.7
%
21.6
%
2.1
pts
23.5
%
21.9
%
1.6
pts
1
UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
Freight Revenues Statistics
(unaudited)
3rd Quarter
Year-to-Date
For the Periods Ended September 30,
2024
2023
%
2024
2023
%
Freight Revenues (Millions)
Grain & grain products
$
923
$
825
12
%
$
2,767
$
2,658
4
%
Fertilizer
208
194
7
612
563
9
Food & refrigerated
269
259
4
832
777
7
Coal & renewables
405
488
(17
)
1,132
1,422
(20
)
Bulk
1,805
1,766
2
5,343
5,420
(1
)
Industrial chemicals & plastics
598
557
7
1,763
1,638
8
Metals & minerals
529
556
(5
)
1,574
1,654
(5
)
Forest products
322
333
(3
)
1,002
1,012
(1
)
Energy & specialized markets
672
611
10
2,009
1,856
8
Industrial
2,121
2,057
3
6,348
6,160
3
Automotive
601
609
(1
)
1,871
1,821
3
Intermodal
1,241
1,113
12
3,460
3,369
3
Premium
1,842
1,722
7
5,331
5,190
3
Total
$
5,768
$
5,545
4
%
$
17,022
16,770
2
%
Revenue Carloads (Thousands)
Grain & grain products
206
183
13
%
616
582
6
%
Fertilizer
53
51
4
162
144
13
Food & refrigerated
45
45
-
137
133
3
Coal & renewables
192
231
(17
)
527
650
(19
)
Bulk
496
510
(3
)
1,442
1,509
(4
)
Industrial chemicals & plastics
169
163
4
502
484
4
Metals & minerals
186
206
(10
)
540
604
(11
)
Forest products
53
54
(2
)
161
161
-
Energy & specialized markets
152
146
4
453
429
6
Industrial
560
569
(2
)
1,656
1,678
(1
)
Automotive
202
210
(4
)
627
623
1
Intermodal [a]
909
763
19
2,446
2,246
9
Premium
1,111
973
14
3,073
2,869
7
Total
2,167
2,052
6
%
6,171
6,056
2
%
Average Revenue per Car
Grain & grain products
$
4,498
$
4,486
-
%
$
4,495
$
4,563
(1
)%
Fertilizer
3,872
3,818
1
3,775
3,921
(4
)
Food & refrigerated
6,099
5,847
4
6,090
5,850
4
Coal & renewables
2,101
2,114
(1
)
2,147
2,187
(2
)
Bulk
3,641
3,465
5
3,706
3,592
3
Industrial chemicals & plastics
3,534
3,406
4
3,509
3,381
4
Metals & minerals
2,847
2,688
6
2,918
2,736
7
Forest products
6,157
6,197
(1
)
6,235
6,305
(1
)
Energy & specialized markets
4,415
4,201
5
4,431
4,331
2
Industrial
3,791
3,612
5
3,833
3,671
4
Automotive
2,968
2,894
3
2,983
2,921
2
Intermodal [a]
1,365
1,459
(6
)
1,414
1,500
(6
)
Premium
1,657
1,769
(6
)
1,735
1,809
(4
)
Average
$
2,662
$
2,702
(1
)%
$
2,758
$
2,769
-
%
[a]
For intermodal shipments each container or
trailer equals one carload.
2
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Condensed Consolidated Statements of
Financial Position (unaudited)
Sep. 30,
Dec. 31,
Millions, Except Percentages
2024
2023
Assets
Cash and cash equivalents
$
947
$
1,055
Short-term investments
20
16
Other current assets
3,182
3,077
Investments
2,649
2,605
Properties, net
58,036
57,398
Operating lease assets
1,345
1,643
Other assets
1,391
1,338
Total assets
$
67,570
$
67,132
Liabilities and Common Shareholders'
Equity
Debt due within one year
$
1,652
$
1,423
Other current liabilities
3,714
3,683
Debt due after one year
29,761
31,156
Operating lease liabilities
934
1,245
Deferred income taxes
13,199
13,123
Other long-term liabilities
1,726
1,714
Total liabilities
50,986
52,344
Total common shareholders' equity
16,584
14,788
Total liabilities and common shareholders'
equity
$
67,570
$
67,132
3
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Cash
Flows (unaudited)
Year-to-Date
Millions, for the Periods Ended September
30,
2024
2023
Operating Activities
Net income
$
4,985
$
4,727
Depreciation
1,792
1,729
Deferred and other income taxes
77
59
Other - net
(170
)
(531
)
Cash provided by operating activities
6,684
5,984
Investing Activities
Capital investments*
(2,530
)
(2,582
)
Other - net
104
(68
)
Cash used in investing activities
(2,426
)
(2,650
)
Financing Activities
Dividends paid
(2,403
)
(2,380
)
Debt repaid
(2,220
)
(2,179
)
Share repurchase programs
(831
)
(705
)
Debt issued
800
1,599
Other - net
279
125
Cash used in financing activities
(4,375
)
(3,540
)
Net change in cash, cash equivalents, and
restricted cash
(117
)
(206
)
Cash, cash equivalents, and restricted
cash at beginning of year
1,074
987
Cash, cash equivalents, and restricted
cash at end of period
$
957
$
781
Free Cash Flow**
Cash provided by operating activities
$
6,684
$
5,984
Cash used in investing activities
(2,426
)
(2,650
)
Dividends paid
(2,403
)
(2,380
)
Free cash flow
$
1,855
$
954
*
Capital investments include locomotive and
freight car early lease buyouts of $96 million in 2024 and $14
million in 2023.
**
Free cash flow is a non-GAAP measure;
however, we believe this measure is important to management and
investors in evaluating our financial performance and measures our
ability to generate cash without additional external financing.
4
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Operating and Performance Statistics
(unaudited)
3rd Quarter
Year-to-Date
For the Periods Ended September 30,
2024
2023
%
2024
2023
%
Operating/Performance
Statistics
Freight car velocity (daily miles per
car)*
210
200
5
%
205
199
3
%
Average train speed (miles per hour)*
23.3
23.6
(1
)
23.5
23.9
(2
)
Average terminal dwell time (hours)*
22.4
23.5
(5
)
22.8
23.6
(3
)
Locomotive productivity (GTMs per
horsepower day)
135
129
5
135
126
7
Gross ton-miles (GTMs) (millions)
215,993
208,678
4
628,828
622,932
1
Train length (feet)
9,580
9,537
-
9,472
9,337
1
Intermodal service performance index
(%)
86
85
1
pts
90
85
5
pts
Manifest/Automotive service performance
index (%)
89
84
5
pts
87
83
4
pts
Intermodal car trip plan compliance
(%)**
76
75
1
pts
80
75
5
pts
Manifest/Automotive car trip plan
compliance (%)**
68
64
4
pts
66
63
3
pts
Workforce productivity (car miles per
employee)
1,102
985
12
1,044
984
6
Total employees (average)
29,946
31,624
(5
)
30,518
31,800
(4
)
Locomotive Fuel Statistics
Average fuel price per gallon consumed
$
2.60
$
3.12
(17
)%
$
2.71
$
3.07
(12
)%
Fuel consumed in gallons (millions)
229
219
5
681
677
1
Fuel consumption rate***
1.058
1.052
1
1.084
1.087
-
Revenue Ton-Miles (Millions)
Grain & grain products
20,451
17,649
16
%
61,095
56,551
8
%
Fertilizer
3,056
2,982
2
9,913
9,071
9
Food & refrigerated
4,624
4,643
-
14,234
13,700
4
Coal & renewables
19,746
23,367
(15
)
54,980
66,728
(18
)
Bulk
47,877
48,641
(2
)
140,222
146,050
(4
)
Industrial chemicals & plastics
7,483
7,492
-
22,979
21,797
5
Metals & minerals
8,414
9,253
(9
)
24,780
27,409
(10
)
Forest products
5,355
5,636
(5
)
16,598
17,000
(2
)
Energy & specialized markets
10,420
9,621
8
31,235
28,937
8
Industrial
31,672
32,002
(1
)
95,592
95,143
-
Automotive
4,558
4,624
(1
)
13,973
13,711
2
Intermodal
19,928
17,765
12
55,505
53,452
4
Premium
24,486
22,389
9
69,478
67,163
3
Total
104,035
103,032
1
%
305,292
308,356
(1
)%
*
Surface Transportation Board (STB)
reported performance measures.
**
Methodology used to report is not
comparable with the reporting to the STB under docket number EP
770.
***
Fuel consumption is computed as follows:
gallons of fuel consumed divided by gross ton-miles in
thousands.
5
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Condensed Consolidated Statements of
Income (unaudited)
2024
Millions, Except Per Share Amounts and
Percentages,
1st Qtr
2nd Qtr
3rd Qtr
Year-to-Date
Operating Revenues
Freight revenues
$
5,616
$
5,638
$
5,768
$
17,022
Other revenues
415
369
323
1,107
Total operating revenues
6,031
6,007
6,091
18,129
Operating Expenses
Compensation and benefits
1,223
1,187
1,228
3,638
Purchased services and materials
613
644
644
1,901
Fuel
658
625
610
1,893
Depreciation
594
596
602
1,792
Equipment and other rents
216
219
237
672
Other
355
336
354
1,045
Total operating expenses
3,659
3,607
3,675
10,941
Operating Income
2,372
2,400
2,416
7,188
Other income, net
92
103
87
282
Interest expense
(324
)
(319
)
(314
)
(957
)
Income before income taxes
2,140
2,184
2,189
6,513
Income tax expense
(499
)
(511
)
(518
)
(1,528
)
Net Income
$
1,641
$
1,673
$
1,671
$
4,985
Share and Per Share
Earnings per share - basic
$
2.69
$
2.75
$
2.75
$
8.19
Earnings per share - diluted
$
2.69
$
2.74
$
2.75
$
8.18
Weighted average number of shares -
basic
609.2
609.4
607.6
608.7
Weighted average number of shares -
diluted
610.2
610.3
608.6
609.7
Dividends declared per share
$
1.30
$
1.30
$
1.34
$
3.94
Operating Ratio
60.7
%
60.0
%
60.3
%
60.4
%
Effective Tax Rate
23.3
%
23.4
%
23.7
%
23.5
%
6
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Freight Revenue Statistics (unaudited)
2024
1st Qtr
2nd Qtr
3rd Qtr
Year-to-Date
Freight Revenues (Millions)
Grain & grain products
$
943
$
901
$
923
$
2,767
Fertilizer
201
203
208
612
Food & refrigerated
285
278
269
832
Coal & renewables
388
339
405
1,132
Bulk
1,817
1,721
1,805
5,343
Industrial chemicals & plastics
572
593
598
1,763
Metals & minerals
515
530
529
1,574
Forest products
338
342
322
1,002
Energy & specialized markets
679
658
672
2,009
Industrial
2,104
2,123
2,121
6,348
Automotive
611
659
601
1,871
Intermodal
1,084
1,135
1,241
3,460
Premium
1,695
1,794
1,842
5,331
Total
$
5,616
$
5,638
$
5,768
$
17,022
Revenue Carloads (Thousands)
Grain & grain products
210
200
206
616
Fertilizer
47
62
53
162
Food & refrigerated
46
46
45
137
Coal & renewables
177
158
192
527
Bulk
480
466
496
1,442
Industrial chemicals & plastics
164
169
169
502
Metals & minerals
170
184
186
540
Forest products
53
55
53
161
Energy & specialized markets
154
147
152
453
Industrial
541
555
560
1,656
Automotive
207
218
202
627
Intermodal [a]
739
798
909
2,446
Premium
946
1,016
1,111
3,073
Total
1,967
2,037
2,167
6,171
Average Revenue per Car
Grain & grain products
$
4,494
$
4,493
$
4,498
$
4,495
Fertilizer
4,271
3,311
3,872
3,775
Food & refrigerated
6,231
5,943
6,099
6,090
Coal & renewables
2,189
2,156
2,101
2,147
Bulk
3,787
3,692
3,641
3,706
Industrial chemicals & plastics
3,486
3,507
3,534
3,509
Metals & minerals
3,030
2,885
2,847
2,918
Forest products
6,297
6,249
6,157
6,235
Energy & specialized markets
4,416
4,462
4,415
4,431
Industrial
3,886
3,825
3,791
3,833
Automotive
2,947
3,033
2,968
2,983
Intermodal [a]
1,468
1,421
1,365
1,414
Premium
1,792
1,766
1,657
1,735
Average
$
2,855
$
2,768
$
2,662
$
2,758
[a]
For intermodal shipments each container or
trailer equals one carload.
7
UNION PACIFIC CORPORATION AND
SUBSIDIARY COMPANIES
Non-GAAP Measures Reconciliation to GAAP
(unaudited)
Debt / Net Income
Millions, Except Ratios
Sep. 30,
Dec. 31,
for the Trailing Twelve Months Ended
[a]
2024
2023
Debt
$
31,413
$
32,579
Net income
6,637
6,379
Debt / net income
4.7
5.1
Adjusted Debt / Adjusted
EBITDA*
Millions, Except Ratios
Sep. 30,
Dec. 31,
for the Trailing Twelve Months Ended
[a]
2024
2023
Net income
$
6,637
$
6,379
Add:
Income tax expense
2,060
1,854
Depreciation
2,381
2,318
Interest expense
1,288
1,340
EBITDA
$
12,366
$
11,891
Adjustments:
Other income, net
(390
)
(491
)
Interest on operating lease liabilities
[b]
47
58
Adjusted EBITDA
$
12,023
$
11,458
Debt
$
31,413
$
32,579
Operating lease liabilities
1,283
1,600
Adjusted debt
$
32,696
$
34,179
Adjusted debt / adjusted EBITDA
2.7
3.0
[a]
The trailing twelve months income
statement information ended September 30, 2024, is recalculated by
taking the twelve months ended December 31, 2023, subtracting the
nine months ended September 30, 2023, and adding the nine months
ended September 30, 2024.
[b]
Represents the hypothetical interest
expense we would incur (using the incremental borrowing rate) if
the property under our operating leases were owned or accounted for
as finance leases.
*
Adjusted debt (total debt plus operating
lease liabilities plus after-tax unfunded pension and OPEB (other
post-retirement benefit) obligations) to adjusted EBITDA (earnings
before interest, taxes, depreciation, amortization, and adjustments
for other income and interest on present value of operating leases)
is considered a non-GAAP financial measure by SEC Regulation G and
Item 10 of SEC Regulation S-K and may not be defined and calculated
by other companies in the same manner. We believe this measure is
important to management and investors in evaluating the Company’s
ability to sustain given debt levels (including leases) with the
cash generated from operations. In addition, a comparable measure
is used by rating agencies when reviewing the Company’s credit
rating. Adjusted debt to adjusted EBITDA should be considered in
addition to, rather than as a substitute for, other information
provided in accordance with GAAP. The most comparable GAAP measure
is debt to net income ratio. The tables above provide
reconciliations from net income to adjusted EBITDA, debt to
adjusted debt, and debt to net income to adjusted debt to adjusted
EBITDA. At September 30, 2024, and December 31, 2023, the
incremental borrowing rate on operating leases was 3.7% and 3.6%,
respectively. Pension and OPEB were funded at September 30, 2024,
and December 31, 2023.
8
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024333210/en/
Union Pacific Investor contact: Brad Stock at
402-544-4227 or bkstock@up.com Union Pacific Media contact:
Clarissa Beyah at 402-957-4793 or cbeyah@up.com
Union Pacific (NYSE:UNP)
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Union Pacific (NYSE:UNP)
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