8-KRegulation FD

UNION PACIFIC CORP 8-K Report, Regulation FD Disclosure (Jun 9, 2020)

Filed June 9, 2020For Securities:UNP

Summary

Union Pacific Corporation (UNP) filed an 8-K on June 9, 2020, disclosing updates provided by its CFO, Jennifer L. Hamann, at the Deutsche Bank 2020 Global Industrials & Materials Summit. While reaffirming first-quarter guidance, the company indicated that second-quarter volumes were tracking to be down approximately 20%. This significant decline is attributed to the ongoing impact of the COVID-19 pandemic, necessitating operational adjustments. Furthermore, the company does not anticipate an improvement in its second-quarter operating ratio compared to the prior year, signaling continued pressure on profitability amidst the challenging economic environment. Investors should note that the presentation included forward-looking statements subject to inherent risks and uncertainties, particularly those related to the pandemic's evolving impact.

Key Highlights

  • 1CFO reaffirmed first-quarter guidance during the Deutsche Bank Global Industrials & Materials Summit.
  • 2Second-quarter volume to date is expected to be down approximately 20% year-over-year.
  • 3Operational changes have been implemented in response to COVID-19-related volume declines.
  • 4Union Pacific does not expect its second-quarter operating ratio to improve on a year-over-year basis.
  • 5The presentation contained forward-looking statements subject to risks and uncertainties, including the impact of the COVID-19 pandemic.

Frequently Asked Questions

The primary reason for the expected 20% volume decline in the second quarter of 2020 is the ongoing impact of the COVID-19 pandemic on economic activity and demand.

No, the company stated that it does not expect its second-quarter operating ratio to improve on a year-over-year basis, indicating continued pressure on profitability.

The full presentation is available on Union Pacific's website (www.up.com) in the Investor Relations section, under 'Earnings Release and Management Presentations' and 'Analysts Conferences'.

The key risks include the unpredictable impact of the COVID-19 pandemic, government and business responses to the pandemic, and other risk factors detailed in their 2019 Form 10-K and their April 23, 2020 Form 10-Q filing.