Summary
Union Pacific Corporation (UNP) reported a strong recovery and record performance in 2010 following the economic recession. The company saw significant growth in freight revenues, up 20% to $16.1 billion, driven by a 13% increase in volume across all commodity groups, particularly automotive, intermodal, and industrial products. This volume growth was supported by core pricing gains and higher fuel surcharges. Financially, UNP achieved a record operating ratio of 70.6% and reported net income of $2.8 billion, or $5.53 per diluted share. The company also demonstrated a commitment to shareholder returns by increasing its dividend by 41% and repurchasing nearly $1.25 billion of its stock. Looking ahead, UNP anticipates continued growth, driven by expanding global demand and strategic investments in infrastructure, positioning the company to benefit from increasing freight demand and the shift towards rail transportation.
Financial Highlights
48 data points| Revenue | $16.96B |
| Operating Expenses | $11.98B |
| Operating Income | $4.98B |
| Interest Expense | $602.00M |
| Net Income | $2.78B |
| EPS (Basic) | $2.79 |
| EPS (Diluted) | $2.77 |
| Shares Outstanding (Basic) | 996.40M |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Record operating income of $5.0 billion, a 47% increase from 2009.
- 2Record operating ratio of 70.6%, an improvement from 76.1% in 2009.
- 3Freight revenues increased 20% to $16.1 billion, with overall volume up 13%.
- 4Net income reached $2.8 billion, or $5.53 per diluted share.
- 5The company increased its quarterly dividend by 41% and repurchased approximately $1.25 billion in shares.
- 6Customer satisfaction improved, reaching record highs.
- 7Capital expenditures were $2.5 billion, with $3.2 billion planned for 2011, including $250 million for Positive Train Control (PTC).