Union Pacific Reports Third Quarter 2023 Results

• Earnings per diluted share of $2.51         
• Operating revenue of $5.9 billion         
• Operating income of $2.2 billion        

Union Pacific Corporation (NYSE: UNP) today reported 2023 third quarter net income of $1.5 billion, or $2.51 per diluted share. This compares to 2022 third quarter net income of $1.9 billion, or $3.05 per diluted share.         

“We faced many challenges in the quarter, including continued inflationary pressures and a drop in carloads,” said Jim Vena, Union Pacific Chief Executive Officer. “Operationally we gained momentum through the quarter, which positions us to provide our customers with great service. Operating and safety metrics are showing solid improvement, as we increase asset utilization. We are aligning the team around our strategy focused on being the best in safety, service, and operational excellence as we drive growth to the railroad. Through our day-to-day actions, we will continue to make improvements as we exit the year.”         

Financial Results: Operating Revenue Reduced by Lower Fuel Surcharge Revenue and Lower Volumes        

Third Quarter 2023 Compared to Third Quarter 2022         

• Operating revenue of $5.9 billion was down 10% driven by reduced fuel surcharge revenue, lower volumes, and business mix, partially offset by core pricing gains.         
• Business volumes, as measured by total revenue carloads, were down 3%.         
• Operating ratio was 63.4%, up 350 basis points. Rising fuel prices during the quarter negatively impacted the operating ratio 170 basis points.          
• Operating income of $2.2 billion declined 17%.         

Operating Performance: Service Strengthening as Resource Utilization Improves          

Third Quarter 2023 Compared to Third Quarter 2022         

• Quarterly freight car velocity was 200 daily miles per car, a 5% improvement.         
• Quarterly locomotive productivity was 129 gross ton-miles (GTMs) per horsepower day, a 4% improvement.         
• Average maximum train length was 9,537 feet, a 1% increase.         
• Quarterly workforce productivity decreased 6% to 985 car miles per employee.         
• Fuel consumption rate of 1.052, measured in gallons of fuel per thousand GTMs, was flat.          
• Union Pacific’s year to date reportable personal injury and derailment rates improved.         

2023 Full Year Outlook Remains Relatively Unchanged         

• Year to date softness in consumer-related volumes likely drive full year volume expectations below Industrial Production (Current forecast: 0.0%)         
• Pricing dollars in excess of inflation dollars         
• 2023 Capital Allocation:
  • Updated capital plan of $3.7 billion          
  • Maintain dividend of $1.30/quarter         
  • No further 2023 share repurchases planned         

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.

Source:  Union Pacific Corporation