Union Pacific reports first quarter 2024 results

Union Pacific Corporation has announced its financial results for the first quarter of 2024, reporting a net income of $1.6 billion, or $2.69 per diluted share. This shows a slight increase from the first quarter of 2023, where the net income was $1.6 billion, or $2.67 per diluted share.

Jim Vena, the chief executive officer of Union Pacific, expressed satisfaction with the performance, stating, “Our team delivered strong financial results in the first quarter as we navigated a challenging freight market and normal winter conditions. These results build on the momentum we established as we exited 2023 and provide further proof of what’s possible as we strive to be the best in safety, service, and operational excellence. This is a great start to the year, but we understand there’s work to be done to achieve our goals and meet our stakeholders’ expectations.”

Key highlights from the first quarter of 2024 compared to the same period in 2023 include:

Operating revenue remained flat at $6.0 billion, with core pricing gains and business mix offsetting reduced fuel surcharge revenue and lower volume.
Freight revenue excluding fuel surcharge revenue grew by 4 percent, despite a 1 percent decline in revenue carloads.
Operating ratio improved by 140 basis points to 60.7 percent, driven by improved operational efficiency.
Operating income increased by 3 percent to $2.4 billion.

In terms of operating performance, Union Pacific saw improvements across safety, service, and operational excellence. Key metrics include:

Improved reportable personal injury and reportable derailment rates.
A 4 percent improvement in quarterly freight car velocity.
A 10 percent improvement in quarterly locomotive productivity.
A 1 percent increase in average maximum train length.
A 1 percent improvement in quarterly workforce productivity.
A 1 percent improvement in the fuel consumption rate.

Looking ahead, Union Pacific provided an updated outlook for 2024:

Profitability outlook is gaining momentum with strong service product, improving network efficiency, and solid pricing.
Share repurchases will restart in the second quarter.
Volume outlook is muted by international intermodal business loss, lower coal demand, and soft economic conditions.
Pricing dollars are expected to exceed inflation dollars.
There is no change to the long-term capital allocation strategy, with a capital plan of $3.4 billion.

Union Pacific remains committed to delivering value to its stakeholders while navigating market challenges and striving for operational excellence.

For more information visit www.up.com

26 April 2024