Summary
Union Pacific Corporation (UNP) demonstrated strong financial performance in 2013, achieving record earnings per share of $9.42 and an all-time best operating ratio of 66.1%. This was driven by core pricing gains and ongoing efficiency improvements across its diversified freight business, which includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products, and Intermodal. Despite headwinds in the coal market and drought impacts on grain shipments, growth in automotive, chemicals, and industrial products, along with shale-related movements and domestic intermodal traffic, compensated for the declines. The company returned significant value to shareholders through a 19% increase in dividends and a 50% increase in share repurchases compared to 2012. UNP also invested $3.6 billion in its network to enhance safety and reliability, including progress on the federally mandated Positive Train Control (PTC) program. Looking ahead, Union Pacific anticipates continued growth opportunities driven by population increases, resurgent chemical industries, and favorable cross-border trade with Mexico, while maintaining a focus on safety and service excellence.
Financial Highlights
48 data points| Revenue | $21.96B |
| Operating Expenses | $14.52B |
| Operating Income | $7.45B |
| Interest Expense | $526.00M |
| Net Income | $4.39B |
| EPS (Basic) | $4.74 |
| EPS (Diluted) | $4.71 |
| Shares Outstanding (Basic) | 926.50M |
| Shares Outstanding (Diluted) | 931.50M |
Key Highlights
- 1Record earnings per share of $9.42 in 2013.
- 2Achieved an all-time best operating ratio of 66.1% in 2013.
- 3Freight revenues grew 5% to $20.7 billion, driven by price increases and favorable business mix shifts, offsetting flat volumes.
- 4Shareholder returns were strong, with a 19% increase in dividends and a 50% increase in share repurchases year-over-year.
- 5Invested $3.6 billion in capital expenditures for infrastructure, safety, and growth initiatives, including $419 million towards Positive Train Control (PTC).
- 6The company is well-positioned to benefit from growth in automotive, chemicals, industrial products, and cross-border trade with Mexico.
- 7Maintains a strong liquidity position with $1.8 billion in available credit facilities and no outstanding borrowings on its revolving credit facility.