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Union Pacific Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Third Quarter Diluted Earnings per Share down 2 Percent


Third Quarter Results

Diluted earnings per share of $1.50 declined 2 percent.

Operating income totaled $2.2 billion, down 5 percent.

Operating ratio of 60.3 percent, improved 2 points.

– Union Pacific Corporation (NYSE: UNP) today reported 2015 third quarter net income of $1.3 billion, or $1.50 per diluted share, compared to $1.4 billion, or $1.53 per diluted share, in the third quarter 2014.

“Total volumes decreased about 6 percent in the quarter, more than offsetting another quarter of solid core pricing gains,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “On the cost side, we’ve made significant progress aligning our resources to current demand, and I am pleased to report a quarterly record operating ratio of 60.3 percent.”


Third Quarter Summary

Operating revenue of $5.6 billion was down 10 percent in the third quarter 2015 compared to the third quarter 2014. Third quarter business volumes, as measured by total revenue carloads, declined about 6 percent compared to 2014. Volume declined in each of the Company’s business groups with the exception of automotive. In addition:

Quarterly freight revenue decreased 10 percent compared to the third quarter 2014, as volume declines, lower fuel surcharge revenue, and negative business mix more than offset core pricing gains.

Union Pacific’s 60.3 percent operating ratio was an all-time quarterly record, 2 points better than the third quarter 2014 and 1.1 points better than the previous all-time quarterly record set in the fourth quarter 2014. The operating ratio benefited by about 1.5 points from the net impact of lower fuel prices during the quarter.

The $1.81 per gallon average quarterly diesel fuel price in the third quarter 2015 was 40 percent lower than the third quarter 2014.

Quarterly train speed, as reported to the Association of American Railroads, was 25.6 mph, 8 percent faster compared with the third quarter 2014.

The Company repurchased 13.8 million shares in the third quarter 2015 at an aggregate cost of more than $1.2 billion.

Summary of

Quarter Freight Revenues

Automotive flat

Agricultural Products down 4 percent

Chemicals down 6 percent

Intermodal down 11 percent

Industrial Products down 16 percent

Coal down 18 percent

2015 Outlook

“We’ve made great progress in meeting this year’s challenges,” Fritz said. “As we finish 2015 and head toward next year, we continue to face many uncertainties. Energy prices, the consumer economy, grain markets and the strength of the U.S. dollar will all be key to future demand. Over the long term, we are well positioned to safely provide our customers with excellent service, while delivering strong value to our shareholders.”

Third Quarter 2015 Earnings Conference Call

Union Pacific will host its third quarter 2015 earnings release presentation live over the Internet and via teleconference on Thursday, October 22, 2015 at 8:45 a.m. Eastern Time. The presentation will be webcast live over the internet on Union Pacific’s website at

. Alternatively, the webcast can be accessed directly through the following

. Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).


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 2005-2014, Union Pacific invested more than $31 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.

Union Pacific Investor contact

: Mike Staffenbeal at 402-544-4227.

Union Pacific Media contact

: Aaron Hunt at 402-544-0100.

Supplemental financial information is attached.

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