Summary
Union Pacific Corporation reported solid financial results for the first quarter of 2017, demonstrating revenue growth and operational resilience despite challenging weather conditions. Total operating revenues increased by 6% year-over-year to $5.132 billion, driven primarily by a 6% rise in freight revenues to $4.794 billion. This growth was fueled by a combination of increased shipment volumes, particularly in coal and agricultural products, and higher average revenue per car (ARC), which benefited from increased fuel surcharges and core pricing gains. While operating expenses also rose by 6% to $3.339 billion, largely due to higher fuel prices and weather-related costs, the company maintained its operating ratio at 65.1%, indicating effective cost management. Net income grew by 9.5% to $1.072 billion, leading to a diluted earnings per share of $1.32, up from $1.16 in the prior year's comparable period. The company continued its commitment to shareholder returns through share repurchases and dividend payments, while also managing its debt levels and investing in capital expenditures.
Financial Highlights
46 data points| Revenue | $5.13B |
| Operating Expenses | $3.34B |
| Operating Income | $1.79B |
| Interest Expense | $172.00M |
| Net Income | $1.07B |
| EPS (Basic) | $1.32 |
| EPS (Diluted) | $1.32 |
| Shares Outstanding (Basic) | 811.50M |
| Shares Outstanding (Diluted) | 814.80M |
Key Highlights
- 1Total operating revenues increased by 6% to $5.132 billion for the first quarter of 2017 compared to the same period in 2016.
- 2Freight revenues grew by 6% to $4.794 billion, driven by a 2% increase in volume and a 4% rise in average revenue per car (ARC), attributed to higher fuel surcharges and pricing.
- 3Net income increased by 9.5% to $1.072 billion, resulting in diluted earnings per share of $1.32, up from $1.16 in Q1 2016.
- 4Operating expenses rose by 6% to $3.339 billion, primarily due to increased fuel costs and weather disruptions, though the operating ratio remained stable at 65.1%.
- 5The company repurchased shares totaling $759 million in the first quarter of 2017, demonstrating a continued focus on returning capital to shareholders.
- 6Despite weather challenges that impacted average train speed and terminal dwell time, Union Pacific managed employee levels effectively, decreasing workforce by 4% while volumes grew.
- 7Capital investments for the quarter were $811 million, reflecting ongoing investment in infrastructure and equipment, with a full-year capital plan of approximately $3.1 billion.