(Union Pacific issued the following news release on April 20.)
OMAHA, Neb. — Union Pacific Corporation today reported earnings of $1.15 per diluted share, or net income of $311 million. This compares to $0.48 per diluted share, or net income of $128 million in the first quarter of 2005, which included the estimated $34 million net income impact of the January West Coast storm. This was the best first quarter earnings ever posted by the company.
“This quarter was positive for us in many ways,” said Jim Young, president and chief executive officer. “We experienced record growth in our business, moved these volumes more efficiently and improved our bottom-line results. Most importantly, we provided better service to our customers.”
First Quarter Summary
Union Pacific Corporation reported record operating revenue of $3.7 billion in the first quarter of 2006 compared to last year’s $3.2 billion. Operating income in the first quarter of 2006 was $605 million compared to $313 million for the same period in 2005 — a 93 percent improvement.
* First quarter 2006 commodity revenue was an all-time record of $3.5 billion, up 18 percent, compared to $3.0 billion in 2005. Drivers the increase were a 4 percent increase in volumes as well as increased fuel surcharge revenue and yields.
* First quarter 2006 average revenue per car was at an all-time best $1,481, versus $1,306 in the first quarter of 2005.
* The operating ratio improved to 83.7 percent in the first quarter of 2006 from 90.1 percent in the first quarter 2005.
* The Railroad’s 2006 average quarterly fuel price of $1.87 per gallon compares to $1.45 per gallon paid a year ago.
2006 First Quarter Commodity Revenue Summary versus 2005
* Agricultural up 26 percent
* Automotive, Industrial Products and Intermodal each up 23 percent
* Chemicals up 14 percent
* Energy up 5 percent
Looking Forward
“Looking ahead we continue to see solid demand, which should support future volume and yield growth,” Young said. “Our challenge will be to continue to handle that growth more efficiently.
“Although we made progress in the quarter with our operating initiatives, we have a long way to go before we are satisfied with our service, velocity and returns. We will work hard over the weeks and months ahead to make further improvement.”
Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.