(Source: Union Pacific press release, July 22, 2021)
OMAHA, Neb. — Union Pacific Corporation today reported 2021 second quarter net income of $1.8 billion, or $2.72 per diluted share. This compares to $1.1 billion, or $1.67 per diluted share, in the second quarter 2020.
“The Union Pacific team leveraged volume growth, core pricing gains, and productivity to produce record quarterly results,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “Beyond our strong financial performance, we also made progress on our goal to reduce our carbon footprint, which includes a 3% improvement in our fuel consumption rate. Importantly, these strong results were achieved in a challenging environment as our rail network continues to be impacted by supply chain disruptions, particularly in the Intermodal space. As we move into the second half of 2021, we will continue working with our customers and the broader supply chain to increase fluidity and efficiently handle the strong demand for freight transportation.”
Financial Results: Quarterly Records for Operating Ratio, Operating Income, Net Income, and Earnings Per Share
Second Quarter 2021 Compared to Second Quarter 2020
• Operating revenue of $5.5 billion was up 30%.
• Business volumes, as measured by total revenue carloads, increased 22%.
• Union Pacific’s 55.1% operating ratio improved 590 basis points. Higher fuel prices negatively impacted the operating ratio by 210 basis points.
• Operating Income of $2.5 billion was up 50%.
• The company repurchased 12.2 million shares in second quarter 2021 at an aggregate cost of $2.7 billion.
Operating Performance: Quarterly Records for Workforce Productivity and Train Length; Second Quarter Records for Locomotive Productivity and Fuel Consumption Rate
Second Quarter 2021 Compared to Second Quarter 2020
• Quarterly freight car velocity was 213 daily miles per car, a 6% decline.
• Quarterly locomotive productivity was 140 gross ton-miles per horsepower day, a 3% improvement.
• Average maximum train length was 9,410 feet, a 9% increase.
• Fuel consumption rate, measured in gallons of fuel per thousand gross ton-miles (GTMs), improved 3%.
• Quarterly workforce productivity was 1,060 car miles per employee, a 22% improvement.
• Union Pacific’s first half reportable personal injury rate deteriorated to 0.95 per 200,000 employee-hours compared to 0.83 for first half 2020.