Summary
Union Pacific Corporation (UNP) reported a strong second quarter and first half of 2011, with diluted earnings per share of $1.59 and $2.89, respectively. This represents significant year-over-year growth, driven by a 16% increase in operating revenues for the quarter and 15% for the year-to-date period. The company benefited from improved economic conditions leading to higher demand for services across most commodity groups, with freight revenues increasing substantially due to higher fuel surcharges, core pricing gains, and volume growth. Despite operational challenges, including Midwest flooding that added $14 million in operating expenses and impacted coal revenue, Union Pacific demonstrated effective cost management and operational leverage. Operating expenses increased, primarily due to higher fuel costs (up 49% for the quarter) and compensation, but were partially offset by productivity improvements. The company also continued its strong commitment to shareholder returns, repurchasing shares and increasing dividend payouts, while maintaining a solid free cash flow of $900 million for the first half of the year.
Financial Highlights
47 data points| Revenue | $4.86B |
| Operating Expenses | $3.47B |
| Operating Income | $1.39B |
| Interest Expense | $148.00M |
| Net Income | $785.00M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 976.80M |
| Shares Outstanding (Diluted) | 984.80M |
Key Highlights
- 1Diluted EPS of $1.59 for Q2 2011 and $2.89 for H1 2011, up from $1.40 and $2.42 in the prior year periods.
- 2Total operating revenues increased 16% to $4.86 billion in Q2 2011 and 15% to $9.35 billion in H1 2011, driven by strong freight revenue growth.
- 3Freight revenues rose 16% year-over-year in Q2 2011, with notable increases across most commodity groups, reflecting improved economic conditions and higher pricing.
- 4Operating expenses increased 19% in Q2 2011, largely due to a 49% surge in fuel costs, though offset by productivity gains.
- 5Free cash flow remained strong, generating $900 million in the first half of 2011, demonstrating robust cash generation capabilities.
- 6The company refinanced its revolving credit facility, securing $1.8 billion through May 2015, indicating continued access to liquidity on favorable terms.
- 7Shareholder returns were enhanced through active share repurchases ($4.8 billion total since program inception) and increased dividend payments.