(Source: Union Pacific press release, October 24, 2024)
Union Pacific Corporation today reported 2024 third quarter net income of $1.7 billion, or $2.75 per diluted share. This compares to 2023 third quarter net income of $1.5 billion, or $2.51 per diluted share.
Third Quarter Summary: 2024 vs. 2023
Financial Results: Strong Operating Income Growth Driven by Increased Revenue, Volume, Core Pricing Gains, and Operating Efficiency
- Operating revenue of $6.1 billion grew 3% driven by increased volume and core pricing gains, partially offset by business mix and reduced fuel surcharge revenue.
- Freight revenue excluding fuel surcharge revenue grew 5% as revenue carloads grew 6%.
- Operating ratio was 60.3%, an improvement of 310 basis points. Lower quarterly fuel prices positively impacted the operating ratio 120 basis points.
- Operating income of $2.4 billion increased 11%.
Operating Performance: Solid Service and Operational Efficiency Gains While Handling Volume Growth; Quarterly Record for Workforce Productivity
- Union Pacific’s year-to-date reportable personal injury and reportable derailment rates both improved.
- Quarterly freight car velocity improved 5% to 210 daily miles per car.
- Quarterly locomotive productivity improved 5% to 135 gross ton-miles (GTMs) per horsepower day.
- Quarterly workforce productivity improved 12% to 1,102 car miles per employee.
- Fuel consumption rate increased 1% to 1.058, measured in gallons of fuel per thousand GTMs.
2024 Outlook
Updated
- Fourth quarter results expected to be consistent sequentially from third quarter while improving year-over-year versus the fourth quarter 2023.
Affirmed
- Profitability outlook continues positive momentum with strong service product, improving network efficiency, and solid pricing
- Share repurchases of ~$1.5 billion in 2024
- Pricing dollars in excess of inflation dollars
- No change to long-term capital allocation strategy
- Capital plan of $3.4 billion
Full story: Union Pacific