Summary
Union Pacific Corporation (UNP) reported a strong first quarter for 2011, with net income increasing by 23.8% to $639 million, or $1.29 per diluted share, compared to $516 million, or $1.01 per diluted share, in the same period of 2010. This growth was primarily driven by a 13% increase in total operating revenues to $4.49 billion, fueled by a significant rise in freight revenues across all commodity groups, reflecting improved economic conditions and higher volumes. The company demonstrated effective cost management despite increased operating expenses, particularly in fuel, which rose 42% due to higher prices. The operating ratio improved slightly to 74.7%, indicating efficient operations. Union Pacific also continued its commitment to returning capital to shareholders, with share repurchases totaling $248 million and dividend payments increasing. While the company faced challenges from severe winter weather in early February, its operational performance remained resilient, with key metrics like average train speed holding steady despite increased carloads. The company's financial position remains solid, supported by robust cash flow from operations and a manageable debt level, positioning it well for continued growth.
Financial Highlights
48 data points| Revenue | $4.49B |
| Operating Expenses | $3.35B |
| Operating Income | $1.14B |
| Interest Expense | $141.00M |
| Net Income | $639.00M |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 979.20M |
| Shares Outstanding (Diluted) | 988.20M |
Key Highlights
- 1Net income increased by 23.8% to $639 million ($1.29 per diluted share) in Q1 2011, up from $516 million ($1.01 per diluted share) in Q1 2010.
- 2Total operating revenues grew by 13% to $4.49 billion, driven by a 13% increase in freight revenues to $4.25 billion.
- 3Freight revenue growth was broad-based across all six commodity groups, with Industrial Products (+15%) and Intermodal (+15%) showing particularly strong increases.
- 4Operating expenses increased by 13% to $3.35 billion, significantly impacted by a 42% rise in fuel costs ($826 million) due to higher prices.
- 5The operating ratio improved slightly to 74.7% from 75.1% in the prior year's quarter, indicating improved operational efficiency.
- 6Cash provided by operating activities more than doubled to $1.29 billion from $656 million in the prior year's quarter.
- 7The company repurchased $248 million in common stock during the quarter and increased dividends paid to $186 million, demonstrating a commitment to shareholder returns.