OMAHA, Neb., July 21, 2016 /PRNewswire/ -- Union Pacific
Corporation (NYSE: UNP) today reported 2016 second quarter net
income of nearly $1.0 billion, or
$1.17 per diluted share compared to
about $1.2 billion, or $1.38 per diluted share, in the second quarter
2015.
Second Quarter Results
- Diluted earnings per share of $1.17 declined 15 percent.
- Operating income totaled $1.7
billion, down 15 percent.
- Operating ratio of 65.2 percent, up 1.1 points.
"While the second quarter was again challenging from a volume
perspective, we continued focusing on initiatives that are squarely
in our control, such as being productive with our resources,
providing our customers with excellent service, and improving our
safety performance," said Lance
Fritz, Union Pacific chairman, president and chief executive
officer.
Second Quarter Summary
Operating revenue of $4.8 billion
was down 12 percent in the second quarter 2016 compared to the
second quarter 2015. Second quarter business volumes, as
measured by total revenue carloads, declined 11 percent compared to
2015. Volume declines in coal, intermodal, industrial
products, chemicals, and automotive more than offset growth in
agricultural products. In addition:
- Quarterly freight revenue decreased 13 percent compared to the
second quarter 2015, as volume declines and lower fuel surcharge
revenue more than offset core pricing gains.
- Union Pacific's 65.2 percent operating ratio was unfavorable by
1.1 points compared to the second quarter 2015.
- The $1.45 per gallon average
quarterly diesel fuel price in the second quarter 2016 was 27
percent lower than the second quarter 2015.
- Quarterly train speed, as reported to the Association of
American Railroads, was 26.6 mph, 8 percent faster than the second
quarter 2015.
- The Company repurchased 7 million shares in the second quarter
2016 at an aggregate cost of $602
million.
Summary of Second Quarter Freight Revenues
- Agricultural Products down 3 percent
- Chemicals down 5 percent
- Automotive down 13 percent
- Industrial Products down 14 percent
- Intermodal down 16 percent
- Coal down 27 percent
2016 Outlook
"A soft global economy, the negative impact of the strong U.S.
dollar on exports, and relatively weak demand for consumer goods
will continue to pressure volumes through the second half of the
year," Fritz said. "However, we see potential bright spots in
certain segments of our business if key economic drivers continue
to strengthen as they have in recent weeks. Beyond the impact
of the current macro environment, we are implementing a strategy
that will make us a stronger company for the future. In the
months and years ahead we will continue to create competitive
advantages for our customers, enhanced safety and satisfaction for
our employees, strength in our communities, and solid returns for
our shareholders."
Second Quarter 2016 Earnings Conference Call
Union Pacific will host its second quarter 2016 earnings release
presentation live over the Internet and via teleconference on
Thursday, July 21, 2016 at
8:45 a.m. Eastern Time. The
presentation will be webcast live over the internet on Union
Pacific's website at www.up.com/investor. Alternatively, the
webcast can be accessed directly through the following link.
Participants may join the conference call by dialing 877/407-8293
(or for international participants, 201/689-8349).
ABOUT UNION PACIFIC
Union Pacific Railroad is the principal operating company of
Union Pacific Corporation (NYSE: UNP). One of America's most
recognized companies, Union Pacific Railroad connects 23 states in
the western two-thirds of the country by rail, providing a critical
link in the global supply chain. From 2006-2015, Union Pacific
invested approximately $33 billion in
its network and operations to support America's transportation
infrastructure. The railroad's diversified business mix
includes Agricultural Products, Automotive, Chemicals, Coal,
Industrial Products and Intermodal. Union Pacific serves many of
the fastest-growing U.S. population centers, operates from all
major West Coast and Gulf Coast ports to eastern gateways, connects
with Canada's rail systems and is
the only railroad serving all six major Mexico gateways. Union Pacific provides value
to its roughly 10,000 customers by delivering products in a safe,
reliable, fuel-efficient and environmentally responsible
manner.
Supplemental financial information is attached.
This presentation and related materials contain statements
about the Company's future that are not statements of historical
fact, including specifically the statements regarding the Company's
expectations with respect to economic conditions and demand levels;
its ability to generate financial returns, improve network
performance and customer service, resource productivity and cost
efficiency; implementation of corporate strategies; new business
development opportunities; and providing returns to its
shareholders. These statements are, or will be,
forward-looking statements as defined by the Securities Act of 1933
and 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 2015, which was filed with the SEC on February 5, 2016. 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
our 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 Percentages,
|
2nd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended June 30,
|
2016
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,430
|
$
|
5,068
|
(13)
|
%
|
|
$
|
8,932
|
$
|
10,319
|
(13)
|
%
|
Other
revenues
|
|
340
|
|
361
|
(6)
|
|
|
|
667
|
|
724
|
(8)
|
|
Total operating
revenues
|
|
4,770
|
|
5,429
|
(12)
|
|
|
|
9,599
|
|
11,043
|
(13)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
1,160
|
|
1,305
|
(11)
|
|
|
|
2,373
|
|
2,674
|
(11)
|
|
Purchased
services and materials
|
|
570
|
|
600
|
(5)
|
|
|
|
1,139
|
|
1,243
|
(8)
|
|
Depreciation
|
|
504
|
|
497
|
1
|
|
|
|
1,006
|
|
988
|
2
|
|
Fuel
|
|
346
|
|
541
|
(36)
|
|
|
|
666
|
|
1,105
|
(40)
|
|
Equipment
and other rents
|
|
286
|
|
312
|
(8)
|
|
|
|
575
|
|
623
|
(8)
|
|
Other
|
|
244
|
|
225
|
8
|
|
|
|
493
|
|
484
|
2
|
|
Total operating
expenses
|
|
3,110
|
|
3,480
|
(11)
|
|
|
|
6,252
|
|
7,117
|
(12)
|
|
Operating
Income
|
|
1,660
|
|
1,949
|
(15)
|
|
|
|
3,347
|
|
3,926
|
(15)
|
|
Other
income
|
|
77
|
|
142
|
(46)
|
|
|
|
123
|
|
168
|
(27)
|
|
Interest
expense
|
|
(173)
|
|
(153)
|
13
|
|
|
|
(340)
|
|
(301)
|
13
|
|
Income before
income taxes
|
|
1,564
|
|
1,938
|
(19)
|
|
|
|
3,130
|
|
3,793
|
(17)
|
|
Income
taxes
|
|
(585)
|
|
(734)
|
(20)
|
|
|
|
(1,172)
|
|
(1,438)
|
(18)
|
|
Net
Income
|
$
|
979
|
$
|
1,204
|
(19)
|
%
|
|
$
|
1,958
|
$
|
2,355
|
(17)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - basic
|
$
|
1.17
|
$
|
1.38
|
(15)
|
%
|
|
$
|
2.33
|
$
|
2.69
|
(13)
|
%
|
Earnings
per share - diluted
|
$
|
1.17
|
$
|
1.38
|
(15)
|
|
|
$
|
2.32
|
$
|
2.68
|
(13)
|
|
Weighted
average number of shares - basic
|
|
837.4
|
|
872.2
|
(4)
|
|
|
|
840.7
|
|
875.8
|
(4)
|
|
Weighted
average number of shares - diluted
|
|
840.1
|
|
875.2
|
(4)
|
|
|
|
843.4
|
|
879.0
|
(4)
|
|
Dividends
declared per share
|
$
|
0.55
|
$
|
0.55
|
-
|
|
|
$
|
1.10
|
$
|
1.10
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
65.2%
|
|
64.1%
|
1.1
|
pts
|
|
|
65.1%
|
|
64.4%
|
0.7
|
pts
|
Effective
Tax Rate
|
|
37.4%
|
|
37.9%
|
(0.5)
|
pts
|
|
|
37.4%
|
|
37.9%
|
(0.5)
|
pts
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended June 30,
|
2016
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
845
|
$
|
867
|
(3)
|
%
|
|
$
|
1,727
|
$
|
1,806
|
(4)
|
%
|
Automotive
|
|
488
|
|
560
|
(13)
|
|
|
|
998
|
|
1,076
|
(7)
|
|
Chemicals
|
|
864
|
|
905
|
(5)
|
|
|
|
1,742
|
|
1,802
|
(3)
|
|
Coal
|
|
494
|
|
679
|
(27)
|
|
|
|
1,013
|
|
1,594
|
(36)
|
|
Industrial
Products
|
|
830
|
|
970
|
(14)
|
|
|
|
1,664
|
|
1,987
|
(16)
|
|
Intermodal
|
|
909
|
|
1,087
|
(16)
|
|
|
|
1,788
|
|
2,054
|
(13)
|
|
Total
|
$
|
4,430
|
$
|
5,068
|
(13)
|
%
|
|
$
|
8,932
|
$
|
10,319
|
(13)
|
%
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
|
229
|
|
225
|
2
|
%
|
|
|
464
|
|
470
|
(1)
|
%
|
Automotive
|
|
217
|
|
222
|
(2)
|
|
|
|
434
|
|
424
|
2
|
|
Chemicals
|
|
275
|
|
283
|
(3)
|
|
|
|
543
|
|
550
|
(1)
|
|
Coal
|
|
243
|
|
309
|
(21)
|
|
|
|
505
|
|
708
|
(29)
|
|
Industrial
Products
|
|
275
|
|
308
|
(11)
|
|
|
|
549
|
|
614
|
(11)
|
|
Intermodal*
|
|
809
|
|
942
|
(14)
|
|
|
|
1,597
|
|
1,754
|
(9)
|
|
Total
|
|
2,048
|
|
2,289
|
(11)
|
%
|
|
|
4,092
|
|
4,520
|
(9)
|
%
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,692
|
$
|
3,844
|
(4)
|
%
|
|
$
|
3,721
|
$
|
3,840
|
(3)
|
%
|
Automotive
|
|
2,247
|
|
2,528
|
(11)
|
|
|
|
2,298
|
|
2,540
|
(10)
|
|
Chemicals
|
|
3,146
|
|
3,197
|
(2)
|
|
|
|
3,208
|
|
3,277
|
(2)
|
|
Coal
|
|
2,026
|
|
2,197
|
(8)
|
|
|
|
2,005
|
|
2,251
|
(11)
|
|
Industrial
Products
|
|
3,025
|
|
3,144
|
(4)
|
|
|
|
3,033
|
|
3,234
|
(6)
|
|
Intermodal*
|
|
1,124
|
|
1,154
|
(3)
|
|
|
|
1,120
|
|
1,171
|
(4)
|
|
Average
|
$
|
2,163
|
$
|
2,213
|
(2)
|
%
|
|
$
|
2,183
|
$
|
2,283
|
(4)
|
%
|
|
|
*
|
Each intermodal
container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Jun.
30,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Assets
|
|
|
|
|
Cash and
cash equivalents
|
$
|
1,830
|
$
|
1,391
|
Short-term
investments
|
|
330
|
|
-
|
Other
current assets
|
|
2,406
|
|
2,739
|
Investments
|
|
1,408
|
|
1,410
|
Net
properties
|
|
49,461
|
|
48,866
|
Other
assets
|
|
255
|
|
194
|
Total
assets
|
$
|
55,690
|
$
|
54,600
|
|
|
|
|
|
Liabilities
and Common Shareholders' Equity
|
|
|
|
|
Debt due
within one year
|
$
|
409
|
$
|
594
|
Other
current liabilities
|
|
2,686
|
|
2,612
|
Debt due
after one year
|
|
14,777
|
|
13,607
|
Deferred
income taxes
|
|
15,593
|
|
15,241
|
Other
long-term liabilities
|
|
1,803
|
|
1,844
|
Total
liabilities
|
|
35,268
|
|
33,898
|
Total common
shareholders' equity
|
|
20,422
|
|
20,702
|
Total
liabilities and common shareholders' equity
|
$
|
55,690
|
$
|
54,600
|
|
|
|
|
|
Debt to
Capital
|
|
42.6%
|
|
40.7%
|
Adjusted
Debt to Capital*
|
|
47.1%
|
|
45.7%
|
|
|
*
|
Adjusted Debt to
Capital is a non-GAAP measure; however, management believes that it
is an important measure in evaluating our financial performance.
See page 8 for a reconciliation to GAAP.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Millions,
|
Year-to-Date
|
For the
Periods Ended June 30,
|
2016
|
2015
|
Operating
Activities
|
|
|
|
|
Net
income
|
$
|
1,958
|
$
|
2,355
|
Depreciation
|
|
1,006
|
|
988
|
Deferred
income taxes
|
|
349
|
|
237
|
Other -
net
|
|
212
|
|
193
|
Cash provided
by operating activities
|
|
3,525
|
|
3,773
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
investments
|
|
(1,590)
|
|
(2,207)
|
Purchase
of short-term investments
|
|
(330)
|
|
-
|
Other -
net
|
|
82
|
|
71
|
Cash used in
investing activities
|
|
(1,838)
|
|
(2,136)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Debt
issued
|
|
1,428
|
|
2,243
|
Common
shares repurchased
|
|
(1,252)
|
|
(1,605)
|
Dividends
paid*
|
|
(925)
|
|
(1,401)
|
Debt
repaid
|
|
(449)
|
|
(396)
|
Other -
net
|
|
(50)
|
|
(23)
|
Cash used in
financing activities
|
|
(1,248)
|
|
(1,182)
|
|
|
|
|
|
Net Change
in Cash and Cash Equivalents
|
|
439
|
|
455
|
Cash and cash
equivalents at beginning of year
|
|
1,391
|
|
1,586
|
Cash and
Cash Equivalents at End of Period
|
$
|
1,830
|
$
|
2,041
|
|
|
|
|
|
Free Cash
Flow**
|
|
|
|
|
Cash
provided by operating activities
|
$
|
3,525
|
$
|
3,773
|
Cash used
in investing activities
|
|
(1,838)
|
|
(2,136)
|
Dividends
paid
|
|
(925)
|
|
(1,401)
|
Free cash
flow
|
$
|
762
|
$
|
236
|
|
|
*
|
The 2015 dividends
paid amount includes the fourth quarter 2014 dividend of $438
million, which was paid on January 2, 2015, the first quarter 2015
dividend of $484 million, which was paid on March 30, 2015, as well
as the second quarter 2015 dividend of $479 million, which was paid
on June 30, 2015. Beginning in 2015, the timing of the
dividend declaration and payable dates was aligned to occur within
the same quarter.
|
|
**
|
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.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Operating and
Performance Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended June 30,
|
2016
|
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Operating/Performance
Statistics
|
|
|
|
|
|
|
|
|
|
|
Gross
ton-miles (GTMs) (millions)
|
202,943
|
|
227,608
|
(11)
|
%
|
|
408,423
|
464,821
|
(12)
|
%
|
Employees
(average)
|
43,053
|
|
48,992
|
(12)
|
|
|
43,354
|
48,911
|
(11)
|
|
GTMs
(millions) per employee
|
4.71
|
|
4.65
|
1
|
|
|
9.42
|
9.50
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive
Fuel Statistics
|
|
|
|
|
|
|
|
|
|
|
Average
fuel price per gallon consumed
|
$
1.45
|
|
$
1.99
|
(27)
|
%
|
|
$
1.35
|
$
1.97
|
(31)
|
%
|
Fuel
consumed in gallons (millions)
|
232
|
|
264
|
(12)
|
|
|
479
|
546
|
(12)
|
|
Fuel
consumption rate*
|
1.144
|
|
1.163
|
(2)
|
|
|
1.174
|
1.175
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
AAR Reported
Performance Measures
|
|
|
|
|
|
|
|
|
|
|
Average
train speed (miles per hour)
|
26.6
|
|
24.6
|
8
|
%
|
|
27.0
|
24.6
|
10
|
%
|
Average
terminal dwell time (hours)
|
27.1
|
|
28.4
|
(5)
|
|
|
27.8
|
29.5
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Ton-Miles (Millions)
|
|
|
|
|
|
|
|
|
|
|
Agricultural Products
|
21,565
|
|
21,281
|
1
|
%
|
|
43,856
|
44,263
|
(1)
|
%
|
Automotive
|
4,528
|
|
4,749
|
(5)
|
|
|
9,106
|
9,042
|
1
|
|
Chemicals
|
16,841
|
|
18,676
|
(10)
|
|
|
34,113
|
36,885
|
(8)
|
|
Coal
|
23,811
|
|
31,233
|
(24)
|
|
|
48,584
|
72,943
|
(33)
|
|
Industrial
Products
|
16,904
|
|
19,334
|
(13)
|
|
|
33,945
|
39,502
|
(14)
|
|
Intermodal
|
19,226
|
|
20,986
|
(8)
|
|
|
37,934
|
40,034
|
(5)
|
|
Total
|
102,875
|
|
116,259
|
(12)
|
%
|
|
207,538
|
242,669
|
(14)
|
%
|
|
|
*
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Condensed
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
Millions,
Except Per Share Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
Year-to-Date
|
Operating
Revenues
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,502
|
$
|
4,430
|
$
|
8,932
|
Other
revenues
|
|
327
|
|
340
|
|
667
|
Total operating
revenues
|
|
4,829
|
|
4,770
|
|
9,599
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and benefits
|
|
1,213
|
|
1,160
|
|
2,373
|
Purchased
services and materials
|
|
569
|
|
570
|
|
1,139
|
Depreciation
|
|
502
|
|
504
|
|
1,006
|
Fuel
|
|
320
|
|
346
|
|
666
|
Equipment
and other rents
|
|
289
|
|
286
|
|
575
|
Other
|
|
249
|
|
244
|
|
493
|
Total operating
expenses
|
|
3,142
|
|
3,110
|
|
6,252
|
Operating
Income
|
|
1,687
|
|
1,660
|
|
3,347
|
Other
income
|
|
46
|
|
77
|
|
123
|
Interest
expense
|
|
(167)
|
|
(173)
|
|
(340)
|
Income before
income taxes
|
|
1,566
|
|
1,564
|
|
3,130
|
Income
taxes
|
|
(587)
|
|
(585)
|
|
(1,172)
|
Net
Income
|
$
|
979
|
$
|
979
|
$
|
1,958
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
Earnings
per share - basic
|
$
|
1.16
|
$
|
1.17
|
$
|
2.33
|
Earnings
per share - diluted
|
$
|
1.16
|
$
|
1.17
|
$
|
2.32
|
Weighted
average number of shares - basic
|
|
844.0
|
|
837.4
|
|
840.7
|
Weighted
average number of shares - diluted
|
|
846.7
|
|
840.1
|
|
843.4
|
Dividends
declared per share
|
$
|
0.55
|
$
|
0.55
|
$
|
1.10
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
65.1%
|
|
65.2%
|
|
65.1%
|
Effective
Tax Rate
|
|
37.5%
|
|
37.4%
|
|
37.4%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Freight Revenues
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
1st
Qtr
|
2nd
Qtr
|
Year-to-Date
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
882
|
$
|
845
|
$
|
1,727
|
Automotive
|
|
510
|
|
488
|
|
998
|
Chemicals
|
|
878
|
|
864
|
|
1,742
|
Coal
|
|
519
|
|
494
|
|
1,013
|
Industrial
Products
|
|
834
|
|
830
|
|
1,664
|
Intermodal
|
|
879
|
|
909
|
|
1,788
|
Total
|
$
|
4,502
|
$
|
4,430
|
$
|
8,932
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
Agricultural
Products
|
|
235
|
|
229
|
|
464
|
Automotive
|
|
217
|
|
217
|
|
434
|
Chemicals
|
|
268
|
|
275
|
|
543
|
Coal
|
|
262
|
|
243
|
|
505
|
Industrial
Products
|
|
274
|
|
275
|
|
549
|
Intermodal*
|
|
788
|
|
809
|
|
1,597
|
Total
|
|
2,044
|
|
2,048
|
|
4,092
|
Average
Revenue per Car
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,749
|
$
|
3,692
|
$
|
3,721
|
Automotive
|
|
2,350
|
|
2,247
|
|
2,298
|
Chemicals
|
|
3,272
|
|
3,146
|
|
3,208
|
Coal
|
|
1,985
|
|
2,026
|
|
2,005
|
Industrial
Products
|
|
3,041
|
|
3,025
|
|
3,033
|
Intermodal*
|
|
1,116
|
|
1,124
|
|
1,120
|
Average
|
$
|
2,202
|
$
|
2,163
|
$
|
2,183
|
|
|
*
|
Each intermodal
container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
|
Non-GAAP Measures
Reconciliation to GAAP
|
|
|
|
|
|
|
|
|
|
|
Debt to
Capital*
|
|
|
|
|
|
Jun.
30,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Debt
(a)
|
$
|
15,186
|
$
|
14,201
|
Equity
|
|
20,422
|
|
20,702
|
Capital
(b)
|
$
|
35,608
|
$
|
34,903
|
Debt to capital
(a/b)
|
|
42.6%
|
|
40.7%
|
|
|
*
|
Total debt divided by
total debt plus equity. We believe this measure is important to
management and investors in evaluating our balance sheet strength
and is important in managing our credit ratios and financing
relationships.
|
|
|
|
|
|
Adjusted
Debt to Capital, Reconciliation to GAAP*
|
|
|
|
|
|
Jun.
30,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Debt
|
$
|
15,186
|
$
|
14,201
|
Net present
value of operating leases
|
|
2,606
|
|
2,726
|
Unfunded
pension and OPEB
|
|
416
|
|
463
|
Adjusted debt
(a)
|
|
18,208
|
|
17,390
|
Equity
|
|
20,422
|
|
20,702
|
Adjusted
capital (b)
|
$
|
38,630
|
$
|
38,092
|
Adjusted debt
to capital (a/b)
|
|
47.1%
|
|
45.7%
|
|
|
*
|
Total debt plus net
present value of operating leases plus after-tax unfunded pension
and OPEB obligation divided by total debt plus net present value of
operating leases plus after-tax unfunded pension and OPEB
obligation plus equity. Operating leases were discounted using 4.7%
at June 30, 2016, and 4.8% at December 31, 2015. The discount rate
reflects our effective interest rate. We believe this measure is
important to management and investors in evaluating the total
amount of leverage in our capital structure including off-balance
sheet lease obligations.
|
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SOURCE Union Pacific Corporation