Union Pacific profit misses estimates, energy shipments fall

As part of its fourth quarter and full year results, Union Pacific Corporation reported it had “leveraged strong productivity” in what it described as “the challenging volume environment”. 

The company’s 2019 fourth quarter net income came in at £1.07 billion, compared to £1.22 billion in the last quarter of 2018. 

Lance Fritz, Union Pacific Chairman, President and Chief Executive Officer, said: “Given the challenging volume environment, we leveraged strong productivity to deliver solid financial results including the third consecutive quarter with an operating ratio below 60 per cent.”

Fourth quarter business volumes, as measured by total revenue carloads, decreased 11 per cent compared to 2018. Industrial volumes were flat compared to 2018, while energy shipments declined, as did premium and agricultural products.

Quarterly freight revenue declined 10 per cent, compared to fourth quarter 2018, as core pricing gains and a positive business mix were offset by lower volumes and decreased fuel surcharge revenue.

Union Pacific’s 59.7 per cent operating ratio represented a fourth quarter record and the third consecutive quarter below 60 per cent, improving 1.9 points compared to fourth quarter 2018.

For the full year 2019, Union Pacific reported net income of £4.51 billion or £6.41 per diluted share, which represents a 1 per cent decrease and 6 per cent increase, respectively, when compared to 2018.

Operating revenue totalled £16.6 billion compared to £17.44 billion in 2018. Operating income totalled £6.58 billion, which was flat compared to 2018.

For more information visit www.up.com

28th January 2020