Union Pacific Corporation (NYSE: UNP) today reported 2014 first quarter net income of $1.1 billion, or $2.38 per diluted share, compared to $957 million, or $2.03 per diluted share, in the first quarter 2013.
First Quarter Records
- Diluted earnings per share of $2.38 improved 17 percent.
- Operating revenues totaled $5.6 billion, up 7 percent.
- Operating income totaled $1.85 billion, up 14 percent.
- Operating ratio of 67.1 percent improved 2.0 points.
“Union Pacific achieved record first quarter financial results, leveraging the strengths of our diverse franchise in the face of challenging weather conditions,” said Jack Koraleski, Union Pacific chief executive officer. “We’re proud of the efforts of the men and women of Union Pacific, who worked tirelessly to serve our customers despite these weather challenges and helped us achieve such a solid start to the year.”
First Quarter Summary
Operating revenue increased 7 percent in the first quarter 2014 to $5.6 billion, versus $5.3 billion in the first quarter 2013. First quarter business volumes, as measured by total revenue carloads, increased 5 percent compared to 2013. Volume increased in agricultural products, industrial products, coal, intermodal and automotive. Chemicals volumes were flat versus 2013 as growth in base chemicals was offset by a reduction in crude oil shipments. In addition:
- Quarterly freight revenue increased 6 percent compared to the first quarter 2013, driven by volume growth and core pricing gains.
- Union Pacific’s operating ratio of 67.1 percent was a first quarter record, 2.0 points better than the first quarter 2013.
- The average quarterly diesel fuel price of $3.12 per gallon in the first quarter 2014 was down 3 percent compared to the first quarter 2013.
- Quarterly train speed, as reported to the Association of American Railroads, was 24.5 mph, down 7 percent versus the first quarter 2013.
- The Company repurchased 3.8 million shares in the first quarter 2014 at an average share price of $178.85 and an aggregate cost of $683 million.
Summary of First Quarter Freight Revenues
- Agricultural Products up 16 percent
- Industrial Products up 10 percent
- Intermodal up 4 percent
- Coal up 3 percent
- Chemicals up 2 percent
- Automotive flat
“As we look forward, we’re watching the economy very closely, as well as the potential impacts of weather, particularly on our coal and grain business,” Koraleski said. “There’s still a lot of year ahead of us, but we are seeing signs of gradual economic improvement, and we’re encouraged by the opportunities it presents. With the power and potential of the Union Pacific franchise, we’ll leverage these opportunities to drive record financial performance and shareholder returns this year and in the years to come.”