8-KRegulation FD

UNION PACIFIC CORP 8-K Report, Regulation FD Disclosure (Jun 8, 2021)

Filed June 8, 2021For Securities:UNP

Summary

Union Pacific Corporation (UNP) filed an 8-K on June 8, 2021, to disclose an update from their CFO, Jennifer L. Hamann, at the 2021 UBS Global Industrials and Transportation Conference. The company reaffirmed its full-year fiscal 2021 guidance. A key financial update provided was the expected reduction of approximately $45 million in deferred state taxes in Q2 2021 due to lower corporate state income tax rates. This reduction in state taxes, combined with a previously announced real estate sale, is projected to boost the Company's second quarter earnings per share (EPS) by an estimated $0.12. The expected impact of these events is a lower effective tax rate for both the second quarter (approximately 22.5%) and the full year (approximately 23%). Investors should note that the filing includes standard forward-looking statements and disclaimers regarding potential risks and uncertainties.

Key Highlights

  • 1Union Pacific reaffirmed its full-year fiscal 2021 guidance.
  • 2A reduction of approximately $45 million in deferred state taxes is expected in Q2 2021 due to lower state income tax rates.
  • 3The company anticipates a Q2 2021 effective tax rate of approximately 22.5%.
  • 4The full-year fiscal 2021 effective tax rate is projected to be around 23%.
  • 5A previously announced real estate sale will also contribute to earnings.
  • 6The combined impact of lower state taxes and the real estate sale is expected to add $0.12 per share to Q2 2021 earnings.

Frequently Asked Questions

The main financial impact is a reduction in expected tax expenses due to lower state income tax rates, which, along with a real estate sale, is projected to add $0.12 to the company's second quarter earnings per share and lower its effective tax rate for the quarter and the full year.

No, the company reaffirmed its full-year fiscal 2021 guidance, meaning the overall earnings forecast remains unchanged despite the specific tax and real estate impacts detailed in the filing.

The company expects its effective tax rate to be approximately 22.5% for the second quarter of 2021 and around 23% for the full fiscal year 2021.

A real estate sale, previously announced on May 27, 2021, is also expected to contribute to the company's second quarter earnings.