OMAHA, Neb., Oct. 22, 2020 /PRNewswire/ -- Union Pacific
Corporation (NYSE: UNP) today reported 2020 third quarter net
income of $1.4 billion, or
$2.01 per diluted share. This
compares to $1.6 billion, or
$2.22 per diluted share, in the third
quarter 2019.
"Our third quarter results represent another step in our
company's transformation. We demonstrated our ability to
efficiently adjust to a sharp rebound in volume, which increased
19% from the second quarter, while operating expenses, excluding
fuel price changes, increased only 11% sequentially," said
Lance Fritz, Union Pacific chairman,
president and chief executive officer. "The strong financial
results and quality service product delivered in the quarter are a
testament to the women and men of Union Pacific as they continue to
exhibit their commitment and resilience through safe
operations."
Third Quarter Summary
Operating revenue of $4.9 billion
was down 11% in third quarter 2020, compared to third quarter 2019.
Third quarter business volumes, as measured by total revenue
carloads, decreased 4% compared to 2019. Premium volumes increased
compared to 2019, while industrial and bulk declined. In
addition:
- Quarterly freight revenue declined 11%, compared to third
quarter 2019, as core pricing gains were more than offset by lower
volumes, a less favorable business mix, and decreased fuel
surcharge revenue.
- Union Pacific's 58.7% operating ratio, an all-time quarterly
record, improved 0.8 points compared to the third quarter
2019. Lower fuel prices positively impacted the operating
ratio by 100 basis points.
- The $1.36 per gallon average
quarterly diesel fuel price in third quarter 2020 was 35% lower
than third quarter 2019.
- Union Pacific's reportable personal injury rate was 0.90 per
200,000 employee-hours for the first three quarters 2020, compared
to 0.82 for the same period 2019.
- Quarterly freight car velocity was 220 daily miles per car, a
3% improvement compared to third quarter 2019.
- Quarterly locomotive productivity was 138 gross ton-miles per
horsepower day, an all-time quarterly record and an 11% improvement
compared to third quarter 2019.
- Quarterly workforce productivity was 998 car miles per
employee, an all-time quarterly record and a 13% improvement
compared to third quarter 2019.
- Average maximum train length was 8,984 feet, a 13% increase
compared to third quarter 2019.
Summary of Third Quarter Freight Revenues
- Bulk down 12%
- Industrial down 18%
- Premium down 1%
2020 Outlook
"The results we are delivering, both operationally and
financially, deepen our conviction that the changes we're making to
transform our railroad are on target and on track," said Fritz. "An
improved customer experience, coupled with a lower cost structure,
is opening up new markets and opportunities to grow our business as
we win with customers and convert more freight to rail."
Third Quarter 2020 Earnings Conference Call
Union Pacific will webcast its third quarter 2020 earnings
release presentation live at www.up.com/investor and via
teleconference on Thursday, October 22,
2020 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.
Supplemental financial information is attached.
****
This news release 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 improve network performance, its
results of operations, and potential impacts of the COVID-19
pandemic. These statements are, or will be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of 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 2019, which was filed with the SEC on February 7, 2020 and the Company's Quarterly
Report on Form 10-Q which was filed with the SEC on July 23, 2020. 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,
|
3rd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended September 30,
|
2020
|
2019
|
%
|
|
|
2020
|
2019
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,596
|
$
|
5,146
|
(11)
|
%
|
|
$
|
13,448
|
$
|
15,392
|
(13)
|
%
|
Other
|
|
323
|
|
370
|
(13)
|
|
|
|
944
|
|
1,104
|
(14)
|
|
Total operating
revenues
|
|
4,919
|
|
5,516
|
(11)
|
|
|
|
14,392
|
|
16,496
|
(13)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,008
|
|
1,134
|
(11)
|
|
|
|
2,972
|
|
3,484
|
(15)
|
|
Depreciation
|
|
555
|
|
557
|
-
|
|
|
|
1,653
|
|
1,657
|
-
|
|
Purchased services and
materials
|
|
508
|
|
574
|
(11)
|
|
|
|
1,470
|
|
1,723
|
(15)
|
|
Fuel
|
|
301
|
|
504
|
(40)
|
|
|
|
982
|
|
1,595
|
(38)
|
|
Equipment and other
rents
|
|
217
|
|
236
|
(8)
|
|
|
|
655
|
|
754
|
(13)
|
|
Other
|
|
299
|
|
277
|
8
|
|
|
|
832
|
|
829
|
-
|
|
Total operating
expenses
|
|
2,888
|
|
3,282
|
(12)
|
|
|
|
8,564
|
|
10,042
|
(15)
|
|
Operating
Income
|
|
2,031
|
|
2,234
|
(9)
|
|
|
|
5,828
|
|
6,454
|
(10)
|
|
Other
income
|
|
37
|
|
53
|
(30)
|
|
|
|
221
|
|
187
|
18
|
|
Interest
expense
|
|
(295)
|
|
(266)
|
11
|
|
|
|
(862)
|
|
(772)
|
12
|
|
Income before
income taxes
|
|
1,773
|
|
2,021
|
(12)
|
|
|
|
5,187
|
|
5,869
|
(12)
|
|
Income
taxes
|
|
(410)
|
|
(466)
|
(12)
|
|
|
|
(1,218)
|
|
(1,353)
|
(10)
|
|
Net
Income
|
$
|
1,363
|
$
|
1,555
|
(12)
|
%
|
|
$
|
3,969
|
$
|
4,516
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
2.02
|
$
|
2.22
|
(9)
|
%
|
|
$
|
5.85
|
$
|
6.39
|
(8)
|
%
|
Earnings per share -
diluted
|
$
|
2.01
|
$
|
2.22
|
(9)
|
|
|
$
|
5.83
|
$
|
6.36
|
(8)
|
|
Weighted average
number of shares - basic
|
|
675.0
|
|
699.3
|
(3)
|
|
|
|
679.0
|
|
707.2
|
(4)
|
|
Weighted average
number of shares - diluted
|
|
676.8
|
|
701.9
|
(4)
|
|
|
|
680.7
|
|
709.8
|
(4)
|
|
Dividends declared per
share
|
$
|
0.97
|
$
|
0.97
|
-
|
|
|
$
|
2.91
|
$
|
2.73
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
58.7%
|
|
59.5%
|
(0.8)
|
pts
|
|
|
59.5%
|
|
60.9%
|
(1.4)
|
pts
|
Effective
Tax Rate
|
|
23.1%
|
|
23.1%
|
-
|
pts
|
|
|
23.5%
|
|
23.1%
|
0.4
|
pts
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Freight Revenues Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended September 30,
|
2020
|
2019
|
%
|
|
|
2020
|
2019
|
%
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
695
|
$
|
704
|
(1)
|
%
|
|
$
|
2,028
|
$
|
2,080
|
(3)
|
%
|
Fertilizer
|
|
157
|
|
161
|
(2)
|
|
|
|
499
|
|
492
|
1
|
|
Food &
refrigerated
|
|
239
|
|
253
|
(6)
|
|
|
|
694
|
|
767
|
(10)
|
|
Coal &
renewables
|
|
387
|
|
564
|
(31)
|
|
|
|
1,177
|
|
1,641
|
(28)
|
|
Bulk
|
|
1,478
|
|
1,682
|
(12)
|
|
|
|
4,398
|
|
4,980
|
(12)
|
|
Industrial chemicals
& plastics
|
|
454
|
|
494
|
(8)
|
|
|
|
1,384
|
|
1,428
|
(3)
|
|
Metals &
minerals
|
|
365
|
|
520
|
(30)
|
|
|
|
1,202
|
|
1,613
|
(25)
|
|
Forest
products
|
|
284
|
|
290
|
(2)
|
|
|
|
853
|
|
878
|
(3)
|
|
Energy &
specialized markets
|
|
464
|
|
598
|
(22)
|
|
|
|
1,522
|
|
1,759
|
(13)
|
|
Industrial
|
|
1,567
|
|
1,902
|
(18)
|
|
|
|
4,961
|
|
5,678
|
(13)
|
|
Automotive
|
|
481
|
|
542
|
(11)
|
|
|
|
1,194
|
|
1,616
|
(26)
|
|
Intermodal
|
|
1,070
|
|
1,020
|
5
|
|
|
|
2,895
|
|
3,118
|
(7)
|
|
Premium
|
|
1,551
|
|
1,562
|
(1)
|
|
|
|
4,089
|
|
4,734
|
(14)
|
|
Total
|
$
|
4,596
|
$
|
5,146
|
(11)
|
%
|
|
$
|
13,448
|
-
|
15,392
|
(13)
|
%
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
187
|
|
181
|
3
|
%
|
|
|
529
|
|
528
|
-
|
%
|
Fertilizer
|
|
50
|
|
48
|
4
|
|
|
|
149
|
|
145
|
3
|
|
Food &
refrigerated
|
|
48
|
|
48
|
-
|
|
|
|
137
|
|
147
|
(7)
|
|
Coal &
renewables
|
|
213
|
|
271
|
(21)
|
|
|
|
607
|
|
771
|
(21)
|
|
Bulk
|
|
498
|
|
548
|
(9)
|
|
|
|
1,422
|
|
1,591
|
(11)
|
|
Industrial chemicals
& plastics
|
|
144
|
|
158
|
(9)
|
|
|
|
439
|
|
463
|
(5)
|
|
Metals &
minerals
|
|
156
|
|
200
|
(22)
|
|
|
|
492
|
|
579
|
(15)
|
|
Forest
products
|
|
55
|
|
55
|
-
|
|
|
|
161
|
|
167
|
(4)
|
|
Energy &
specialized markets
|
|
125
|
|
157
|
(20)
|
|
|
|
402
|
|
460
|
(13)
|
|
Industrial
|
|
480
|
|
570
|
(16)
|
|
|
|
1,494
|
|
1,669
|
(10)
|
|
Automotive
|
|
203
|
|
222
|
(9)
|
|
|
|
490
|
|
650
|
(25)
|
|
Intermodal
[a]
|
|
863
|
|
789
|
9
|
|
|
|
2,296
|
|
2,443
|
(6)
|
|
Premium
|
|
1,066
|
|
1,011
|
5
|
|
|
|
2,786
|
|
3,093
|
(10)
|
|
Total
|
|
2,044
|
|
2,129
|
(4)
|
%
|
|
|
5,702
|
|
6,353
|
(10)
|
%
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
3,705
|
$
|
3,900
|
(5)
|
%
|
|
$
|
3,832
|
$
|
3,939
|
(3)
|
%
|
Fertilizer
|
|
3,172
|
|
3,334
|
(5)
|
|
|
|
3,361
|
|
3,391
|
(1)
|
|
Food &
refrigerated
|
|
4,891
|
|
5,203
|
(6)
|
|
|
|
5,053
|
|
5,211
|
(3)
|
|
Coal &
renewables
|
|
1,820
|
|
2,082
|
(13)
|
|
|
|
1,938
|
|
2,129
|
(9)
|
|
Bulk
|
|
2,964
|
|
3,068
|
(3)
|
|
|
|
3,092
|
|
3,130
|
(1)
|
|
Industrial chemicals
& plastics
|
|
3,154
|
|
3,131
|
1
|
|
|
|
3,150
|
|
3,087
|
2
|
|
Metals &
minerals
|
|
2,337
|
|
2,599
|
(10)
|
|
|
|
2,444
|
|
2,785
|
(12)
|
|
Forest
products
|
|
5,181
|
|
5,275
|
(2)
|
|
|
|
5,300
|
|
5,249
|
1
|
|
Energy &
specialized markets
|
|
3,742
|
|
3,797
|
(1)
|
|
|
|
3,791
|
|
3,822
|
(1)
|
|
Industrial
|
|
3,271
|
|
3,336
|
(2)
|
|
|
|
3,321
|
|
3,402
|
(2)
|
|
Automotive
|
|
2,368
|
|
2,436
|
(3)
|
|
|
|
2,438
|
|
2,485
|
(2)
|
|
Intermodal
[a]
|
|
1,238
|
|
1,294
|
(4)
|
|
|
|
1,261
|
|
1,276
|
(1)
|
|
Premium
|
|
1,454
|
|
1,545
|
(6)
|
|
|
|
1,468
|
|
1,530
|
(4)
|
|
Average
|
$
|
2,248
|
$
|
2,417
|
(7)
|
%
|
|
$
|
2,359
|
$
|
2,423
|
(3)
|
%
|
|
[a] For
intermodal shipments each container or trailer equals one
carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Financial Position
(unaudited)
|
|
|
|
|
|
|
|
Sep.
30,
|
Dec.
31,
|
Millions,
Except Percentages
|
2020
|
2019
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,601
|
$
|
831
|
Short-term
investments
|
|
60
|
|
60
|
Other current
assets
|
|
2,469
|
|
2,568
|
Investments
|
|
2,071
|
|
2,050
|
Net
properties
|
|
54,375
|
|
53,916
|
Operating lease
assets
|
|
1,642
|
|
1,812
|
Other
assets
|
|
496
|
|
436
|
Total
assets
|
$
|
63,714
|
$
|
61,673
|
|
|
|
|
|
Liabilities
and Common Shareholders' Equity
|
|
|
|
|
Debt due within one
year
|
$
|
1,980
|
$
|
1,257
|
Other current
liabilities
|
|
2,861
|
|
3,094
|
Debt due after one
year
|
|
26,080
|
|
23,943
|
Operating lease
liabilities
|
|
1,293
|
|
1,471
|
Deferred income
taxes
|
|
12,328
|
|
11,992
|
Other long-term
liabilities
|
|
1,973
|
|
1,788
|
Total
liabilities
|
|
46,515
|
|
43,545
|
Total common
shareholders' equity
|
|
17,199
|
|
18,128
|
Total
liabilities and common shareholders' equity
|
$
|
63,714
|
$
|
61,673
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
|
|
|
|
Millions,
|
Year-to-Date
|
For the
Periods Ended September 30,
|
2020
|
2019
|
Operating
Activities
|
|
|
|
|
Net income
|
$
|
3,969
|
$
|
4,516
|
Depreciation
|
|
1,653
|
|
1,657
|
Deferred income
taxes
|
|
327
|
|
297
|
Other - net
|
|
44
|
|
(206)
|
Cash provided
by operating activities
|
|
5,993
|
|
6,264
|
Investing
Activities
|
|
|
|
|
Capital
investments
|
|
(2,294)
|
|
(2,495)
|
Maturities of
short-term investments
|
|
106
|
|
120
|
Purchases of
short-term investments
|
|
(106)
|
|
(110)
|
Other - net
|
|
213
|
|
(22)
|
Cash used in
investing activities
|
|
(2,081)
|
|
(2,507)
|
Financing
Activities
|
|
|
|
|
Debt issued
|
|
4,004
|
|
3,986
|
Share repurchase
programs
|
|
(2,956)
|
|
(5,162)
|
Dividends
paid
|
|
(1,974)
|
|
(1,925)
|
Debt repaid
|
|
(832)
|
|
(642)
|
Debt
Exchange
|
|
(327)
|
|
-
|
Net issuance of
commercial paper
|
|
(2)
|
|
(5)
|
Other - net
|
|
(63)
|
|
(34)
|
Cash used in
financing activities
|
|
(2,150)
|
|
(3,782)
|
Net Change
in Cash, Cash Equivalents and Restricted Cash
|
|
1,762
|
|
(25)
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
856
|
|
1,328
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
$
|
2,618
|
$
|
1,303
|
Free Cash
Flow*
|
|
|
|
|
Cash provided by
operating activities
|
$
|
5,993
|
$
|
6,264
|
Cash used in investing
activities
|
|
(2,081)
|
|
(2,507)
|
Dividends
paid
|
|
(1,974)
|
|
(1,925)
|
Free cash
flow
|
$
|
1,938
|
$
|
1,832
|
*
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year-to-Date
|
For the
Periods Ended September 30,
|
2020
|
|
2019
|
%
|
|
|
2020
|
|
2019
|
%
|
|
Operating/Performance
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity
(daily miles per car) [a]
|
220
|
|
214
|
3
|
%
|
|
217
|
|
203
|
7
|
%
|
Average train speed
(miles per hour) [a] *
|
25.3
|
|
25.2
|
-
|
|
|
25.8
|
|
24.8
|
4
|
|
Average terminal dwell
time (hours) [a] *
|
22.8
|
|
23.6
|
(3)
|
|
|
22.8
|
|
25.3
|
(10)
|
|
Locomotive
productivity (GTMs per horsepower day)
|
138
|
|
124
|
11
|
|
|
135
|
|
118
|
14
|
|
Gross ton-miles (GTMs)
(millions)
|
196,998
|
|
215,487
|
(9)
|
|
|
568,921
|
|
645,815
|
(12)
|
|
Train length
(feet)
|
8,984
|
|
7,924
|
13
|
|
|
8,676
|
|
7,618
|
14
|
|
Intermodal car trip
plan compliance (%)
|
77
|
|
81
|
(4)
|
pts
|
|
81
|
|
72
|
9
|
pts
|
Manifest/Automotive
car trip plan compliance (%)
|
72
|
|
67
|
5
|
pts
|
|
70
|
|
63
|
7
|
pts
|
Workforce productivity
(car miles per employee)
|
998
|
|
883
|
13
|
|
|
920
|
|
853
|
8
|
|
Total employees
(average)
|
30,155
|
|
36,659
|
(18)
|
|
|
31,362
|
|
38,456
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive
Fuel Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
$1.36
|
|
$ 2.09
|
(35)
|
%
|
|
$
1.51
|
|
$ 2.13
|
(29)
|
%
|
Fuel consumed in
gallons (millions)
|
213
|
|
232
|
(8)
|
|
|
627
|
|
725
|
(14)
|
|
Fuel consumption
rate**
|
1.084
|
|
1.075
|
1
|
|
|
1.103
|
|
1.122
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Ton-Miles (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
18,035
|
|
16,545
|
9
|
%
|
|
50,388
|
|
49,966
|
1
|
%
|
Fertilizer
|
2,932
|
|
2,737
|
7
|
|
|
9,092
|
|
8,722
|
4
|
|
Food &
refrigerated
|
4,614
|
|
4,679
|
(1)
|
|
|
12,872
|
|
14,037
|
(8)
|
|
Coal &
renewables
|
20,374
|
|
27,516
|
(26)
|
|
|
58,567
|
|
78,700
|
(26)
|
|
Bulk
|
45,955
|
|
51,477
|
(11)
|
|
|
130,919
|
|
151,425
|
(14)
|
|
Industrial chemicals
& plastics
|
7,170
|
|
7,268
|
(1)
|
|
|
20,630
|
|
21,295
|
(3)
|
|
Metals &
minerals
|
6,536
|
|
9,224
|
(29)
|
|
|
21,471
|
|
29,403
|
(27)
|
|
Forest
products
|
5,882
|
|
5,784
|
2
|
|
|
17,321
|
|
17,711
|
(2)
|
|
Energy &
specialized markets
|
8,005
|
|
11,381
|
(30)
|
|
|
27,327
|
|
33,173
|
(18)
|
|
Industrial
|
27,593
|
|
33,657
|
(18)
|
|
|
86,749
|
|
101,582
|
(15)
|
|
Automotive
|
4,269
|
|
4,757
|
(10)
|
|
|
10,498
|
|
13,954
|
(25)
|
|
Intermodal
|
20,096
|
|
18,216
|
10
|
|
|
55,344
|
|
56,540
|
(2)
|
|
Premium
|
24,365
|
|
22,973
|
6
|
|
|
65,842
|
|
70,494
|
(7)
|
|
Total
|
97,913
|
|
108,107
|
(9)
|
%
|
|
283,510
|
|
323,501
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
[a]
|
Prior years have been
realigned to conform to the current year presentation.
|
|
|
*
|
Surface
Transportation Board reported performance
measures.
|
|
|
**
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
Millions,
Except Per Share Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
Year-to-Date
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,880
|
$
|
3,972
|
$
|
4,596
|
$
|
13,448
|
Other
revenues
|
|
349
|
|
272
|
|
323
|
|
944
|
Total operating
revenues
|
|
5,229
|
|
4,244
|
|
4,919
|
|
14,392
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,059
|
|
905
|
|
1,008
|
|
2,972
|
Depreciation
|
|
547
|
|
551
|
|
555
|
|
1,653
|
Purchased services and
materials
|
|
521
|
|
441
|
|
508
|
|
1,470
|
Fuel
|
|
434
|
|
247
|
|
301
|
|
982
|
Equipment and other
rents
|
|
227
|
|
211
|
|
217
|
|
655
|
Other
|
|
298
|
|
235
|
|
299
|
|
832
|
Total operating
expenses
|
|
3,086
|
|
2,590
|
|
2,888
|
|
8,564
|
Operating
Income
|
|
2,143
|
|
1,654
|
|
2,031
|
|
5,828
|
Other
income
|
|
53
|
|
131
|
|
37
|
|
221
|
Interest
expense
|
|
(278)
|
|
(289)
|
|
(295)
|
|
(862)
|
Income before
income taxes
|
|
1,918
|
|
1,496
|
|
1,773
|
|
5,187
|
Income
taxes
|
|
(444)
|
|
(364)
|
|
(410)
|
|
(1,218)
|
Net
Income
|
$
|
1,474
|
$
|
1,132
|
$
|
1,363
|
$
|
3,969
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
2.15
|
$
|
1.67
|
$
|
2.02
|
$
|
5.85
|
Earnings per share -
diluted
|
$
|
2.15
|
$
|
1.67
|
$
|
2.01
|
$
|
5.83
|
Weighted average
number of shares - basic
|
|
684.3
|
|
677.7
|
|
675.0
|
|
679.0
|
Weighted average
number of shares - diluted
|
|
686.2
|
|
679.2
|
|
676.8
|
|
680.7
|
Dividends declared per
share
|
$
|
0.97
|
$
|
0.97
|
$
|
0.97
|
$
|
2.91
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
59.0%
|
|
61.0%
|
|
58.7%
|
|
59.5%
|
Effective
Tax Rate
|
|
23.1%
|
|
24.3%
|
|
23.1%
|
|
23.5%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Freight Revenues Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
Year-to-Date
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
689
|
$
|
644
|
$
|
695
|
$
|
2,028
|
Fertilizer
|
|
174
|
|
168
|
|
157
|
|
499
|
Food &
refrigerated
|
|
250
|
|
205
|
|
239
|
|
694
|
Coal &
renewables
|
|
421
|
|
369
|
|
387
|
|
1,177
|
Bulk
|
|
1,534
|
|
1,386
|
|
1,478
|
|
4,398
|
Industrial chemicals
& plastics
|
|
495
|
|
435
|
|
454
|
|
1,384
|
Metals &
minerals
|
|
469
|
|
368
|
|
365
|
|
1,202
|
Forest
products
|
|
303
|
|
266
|
|
284
|
|
853
|
Energy &
specialized markets
|
|
627
|
|
431
|
|
464
|
|
1,522
|
Industrial
|
|
1,894
|
|
1,500
|
|
1,567
|
|
4,961
|
Automotive
|
|
524
|
|
189
|
|
481
|
|
1,194
|
Intermodal
|
|
928
|
|
897
|
|
1,070
|
|
2,895
|
Premium
|
|
1,452
|
|
1,086
|
|
1,551
|
|
4,089
|
Total
|
$
|
4,880
|
$
|
3,972
|
$
|
4,596
|
$
|
13,448
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
175
|
|
167
|
|
187
|
|
529
|
Fertilizer
|
|
46
|
|
53
|
|
50
|
|
149
|
Food &
refrigerated
|
|
48
|
|
41
|
|
48
|
|
137
|
Coal &
renewables
|
|
208
|
|
186
|
|
213
|
|
607
|
Bulk
|
|
477
|
|
447
|
|
498
|
|
1,422
|
Industrial chemicals
& plastics
|
|
154
|
|
141
|
|
144
|
|
439
|
Metals &
minerals
|
|
174
|
|
162
|
|
156
|
|
492
|
Forest
products
|
|
56
|
|
50
|
|
55
|
|
161
|
Energy &
specialized markets
|
|
162
|
|
115
|
|
125
|
|
402
|
Industrial
|
|
546
|
|
468
|
|
480
|
|
1,494
|
Automotive
|
|
208
|
|
79
|
|
203
|
|
490
|
Intermodal
[a]
|
|
709
|
|
724
|
|
863
|
|
2,296
|
Premium
|
|
917
|
|
803
|
|
1,066
|
|
2,786
|
Total
|
|
1,940
|
|
1,718
|
|
2,044
|
|
5,702
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
$
|
3,940
|
$
|
3,861
|
$
|
3,705
|
$
|
3,832
|
Fertilizer
|
|
3,768
|
|
3,181
|
|
3,172
|
|
3,361
|
Food &
refrigerated
|
|
5,277
|
|
4,986
|
|
4,891
|
|
5,053
|
Coal &
renewables
|
|
2,022
|
|
1,979
|
|
1,820
|
|
1,938
|
Bulk
|
|
3,219
|
|
3,099
|
|
2,964
|
|
3,092
|
Industrial chemicals
& plastics
|
|
3,205
|
|
3,086
|
|
3,154
|
|
3,150
|
Metals &
minerals
|
|
2,697
|
|
2,276
|
|
2,337
|
|
2,444
|
Forest
products
|
|
5,457
|
|
5,256
|
|
5,181
|
|
5,300
|
Energy &
specialized markets
|
|
3,866
|
|
3,739
|
|
3,742
|
|
3,791
|
Industrial
|
|
3,469
|
|
3,201
|
|
3,271
|
|
3,321
|
Automotive
|
|
2,525
|
|
2,388
|
|
2,368
|
|
2,438
|
Intermodal
[a]
|
|
1,307
|
|
1,241
|
|
1,238
|
|
1,261
|
Premium
|
|
1,583
|
|
1,354
|
|
1,454
|
|
1,468
|
Average
|
$
|
2,516
|
$
|
2,312
|
$
|
2,248
|
$
|
2,359
|
|
[a]
For intermodal shipments each container or trailer equals one
carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Non-GAAP Measures Reconciliation to GAAP
|
|
Adjusted Debt /
Adjusted EBITDA*
|
|
|
|
|
Millions, Except
Ratios
|
Sep.
30,
|
Dec.
31,
|
for the Trailing
Twelve Months Ended [a]
|
2020
|
2019
|
Net
income
|
$
|
5,372
|
$
|
5,919
|
Add:
|
|
|
|
|
Income tax
expense
|
|
1,693
|
|
1,828
|
Depreciation
|
|
2,212
|
|
2,216
|
Interest
expense
|
|
1,140
|
|
1,050
|
EBITDA
|
$
|
10,417
|
$
|
11,013
|
Adjustments:
|
|
|
|
Other
income
|
|
(277)
|
|
(243)
|
Interest on
operating lease liabilities**
|
|
59
|
|
68
|
Adjusted
EBITDA
|
$
|
10,199
|
$
|
10,838
|
Debt
|
$
|
28,060
|
$
|
25,200
|
Operating lease
liabilities
|
|
1,601
|
|
1,833
|
Unfunded
pension and OPEB, net of taxes of $107 and $124
|
|
349
|
|
400
|
Adjusted
debt
|
$
|
30,010
|
$
|
27,433
|
Adjusted debt /
Adjusted EBITDA
|
|
2.9
|
|
2.5
|
[a]
|
The trailing twelve
months income statement information ended September 30, 2020 is
recalculated by taking the twelve months ended December 31, 2019,
subtracting the nine months ended September 30, 2019, and adding
the nine months ended September 30, 2020.
|
|
|
*
|
Total debt plus
operating lease liabilities plus after-tax unfunded pension and
OPEB obligation divided by net income plus income tax expense,
depreciation, amortization, interest expense and adjustments for
other income and interest on operating lease liabilities. Adjusted
debt to adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, other income and interest on operating
lease liabilities) is considered a non-GAAP financial measure by
SEC Regulation G and Item 10 of SEC Regulation S-K and may not be
defined and calculated by other companies in the same manner. We
believe this measure is important to management and investors in
evaluating the Company's ability to sustain given debt levels
(including leases) with the cash generated from operations. In
addition, a comparable measure is used by rating agencies when
reviewing the Company's credit rating. Adjusted debt to Adjusted
EBITDA should be considered in addition to, rather than as a
substitute for, net income. The table above provides
reconciliations from net income to adjusted debt to adjusted
EBITDA. At both September 30, 2020 and December 31, 2019, the
incremental borrowing rate on operating lease liabilities was
3.7%.
|
|
|
**
|
Represents the
hypothetical interest expense we would incur (using the incremental
borrowing rate) if the property under our operating leases were
owned or accounted for as finance leases.
|
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SOURCE Union Pacific Corporation