Summary
Union Pacific Corporation (UNP) announced updated volume expectations at the 2016 Bank of America Merrill Lynch Transportation Conference. The company now anticipates total volumes to decline in the low double-digit percentage range for the second quarter of 2016 compared to the same period in the prior year. This revised outlook reflects ongoing challenges impacting the company's freight volumes. Despite the increased near-term volume weakness, Union Pacific maintained its full-year volume guidance. The company still expects total volumes for the entire fiscal year 2016 to be down in the mid-single digit range compared to 2015. Investors should monitor ongoing economic and industry trends that could influence the company's ability to meet its full-year projections.
Key Highlights
- 1Union Pacific (UNP) revised its Q2 2016 volume expectations downwards, now anticipating a low double-digit percentage decline year-over-year.
- 2The company's Executive Vice President-Finance and CFO, Robert M. Knight, Jr., provided the updated guidance.
- 3Despite the weaker Q2 outlook, the full-year 2016 volume guidance remains unchanged, with a mid-single digit decline expected.
- 4This disclosure was made at the 2016 Bank of America Merrill Lynch Transportation Conference.
- 5The filing includes standard forward-looking statement disclaimers, advising investors of potential risks and uncertainties that could impact actual results.