Union Pacific
Omaha, Neb. - Union Pacific Corporation (NYSE: UNP) today reported 2024 second quarter net income of $1.7 billion, or $2.74 per diluted share. This compares to 2023 second quarter net income of $1.6 billion, or $2.57 per diluted share.
Second Quarter Results
- Second quarter earnings per diluted share of $2.74, up 7%
- Second quarter operating income up 9%
- Second quarter net income up 7%
“Our second quarter performance demonstrates the team’s ability to deliver strong results,” said Jim Vena, Union Pacific Chief Executive Officer. “This provides further proof that our strategy to be the best in safety, service, and operational excellence will drive success. The entire Union Pacific team is energized behind this strategy and wants to win. As we build on the foundation we’ve laid over the past 12 months, we look forward to demonstrating what’s possible for our great company.”
Second Quarter Summary: 2024 vs. 2023
Financial Results: Solid Operating Income Growth Driven by Core Pricing Gains, Operating Efficiency, and Intermodal Equipment Sale
- Operating revenue of $6.0 billion was up 1% driven by core pricing gains and increased volume partially offset by business mix and reduced fuel surcharge.
- Freight revenue excluding fuel surcharge revenue grew 2% as revenue carloads grew slightly.
- Operating ratio was 60.0%, an improvement of 300 basis points. Lower quarterly fuel prices and an existing environmental remediation compliance order negatively impacted the operating ratio 10 and 30 basis points, respectively. A sale of intermodal equipment aided the operating ratio 70 basis points.
- Operating income of $2.4 billion was up 9%.
Operating Performance: Continued Improvement Across Safety and Operational Excellence as Network Challenged by Weather
- Union Pacific’s year-to-date reportable personal injury and reportable derailment rates both improved.
- Quarterly freight car velocity of 201 daily miles per car was flat.
- Quarterly locomotive productivity was 134 gross ton-miles (GTMs) per horsepower day, a 6% improvement.
- Average maximum train length was 9,544 feet, a 2% increase.
- Quarterly workforce productivity improved 5% to 1,031 car miles per employee.
- Fuel consumption rate of 1.080, measured in gallons of fuel per thousand GTMs, improved 1%.
2024 Outlook
Updated
- Second half volume outlook remains uncertain based on economic indicators and coal demand
- Profitability outlook continues positive momentum with strong service product, improving network efficiency, and solid pricing
- Share repurchases of ~$1.5 billion in 2024
Affirmed
- Pricing dollars in excess of inflation dollars
- No change to long-term capital allocation strategyCapital plan of $3.4 billion
- Capital plan of $3.4 billion
Second Quarter 2024 Earnings Conference Call
Union Pacific will webcast its second quarter 2024 earnings release presentation live at https://investor.unionpacific.com and via teleconference on Thursday, July 25, 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.
Union Pacific Investor contact: Brad Stock at 402-544-4227 or [email protected]