Summary
Union Pacific Corporation's (UNP) first quarter 2015 results show a slight decrease in operating revenues, down 0.3% to $5.614 billion from $5.638 billion in the prior year quarter. This was primarily driven by a 1% decline in freight revenues, largely due to lower fuel surcharge revenue and a 2% decrease in overall volume. Despite the revenue dip, the company achieved a first quarter record operating ratio of 64.8%, a 2.3 percentage point improvement, driven by strong core pricing gains and the benefit of lower fuel prices. Net income increased by 5.8% to $1.151 billion, translating to diluted earnings per share of $1.30, up from $1.19 in the prior year period. Key operational challenges included a West Coast port slowdown and declining crude oil prices, which impacted volumes, particularly in international intermodal and coal. In response, UNP adjusted its resources, including furloughing some employees and storing locomotives. The company continues to invest in infrastructure, with capital investments of $1.101 billion in the quarter, including significant spending on Positive Train Control (PTC). The company also returned capital to shareholders through dividends and share repurchases, highlighting a continued focus on shareholder returns amidst a dynamic operating environment.
Financial Highlights
47 data points| Revenue | $5.61B |
| Operating Expenses | $3.64B |
| Operating Income | $1.98B |
| Interest Expense | $148.00M |
| Net Income | $1.15B |
| EPS (Basic) | $1.31 |
| EPS (Diluted) | $1.30 |
| Shares Outstanding (Basic) | 879.30M |
| Shares Outstanding (Diluted) | 882.80M |
Key Highlights
- 1Operating revenues slightly declined by 0.3% to $5.614 billion, primarily due to a 1% decrease in freight revenues driven by lower fuel surcharges and a 2% volume reduction.
- 2Achieved a first quarter record operating ratio of 64.8%, an improvement of 2.3 percentage points, attributed to core pricing gains and lower fuel expenses.
- 3Net income increased by 5.8% to $1.151 billion, with diluted earnings per share rising to $1.30 from $1.19 year-over-year.
- 4Capital investments totaled $1.101 billion for the quarter, a significant increase from $893 million in the prior year, including investments in Positive Train Control (PTC).
- 5The company experienced volume declines in international intermodal, coal, and crude oil, partially offset by growth in domestic intermodal, automotive, and agricultural products.
- 6In response to volume shifts and operational challenges like the West Coast port slowdown, UNP adjusted its workforce and locomotive utilization.
- 7Shareholders received $559 million in dividends and significant capital was returned through share repurchases, reflecting a commitment to capital return.