(Source: Union Pacific press release, October 21, 2021)
OMAHA, Neb. — Union Pacific Corporation today reported 2021 third quarter net income of $1.7 billion, or $2.57 per diluted share. This compares to $1.4 billion, or $2.01 per diluted share, in the third quarter 2020.
“The Union Pacific team successfully navigated global supply chain disruptions, a major bridge outage, and additional weather events to produce strong quarterly revenue growth and financial results,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “In the quarter, the team delivered solid core pricing gains, leveraged business development to produce a positive business mix, and generated productivity to offset flat volume. We also set a quarterly record for fuel consumption rate as we continue to make strides towards our goal to reduce our absolute greenhouse gas emissions. As we close out 2021, we are committed to improving our safety performance and service product to support our customers and the broader supply chain to handle the strong demand for freight transportation.”
Financial Results: Third Quarter Records for Operating Income, Operating Ratio, Net Income, and Earnings Per Share
Third Quarter 2021 Compared to Third Quarter 2020
- Operating revenue of $5.6 billion was up 13%.
- Business volumes, as measured by total revenue carloads, were flat.
- Union Pacific’s 56.3% operating ratio improved 240 basis points. Higher fuel prices negatively impacted the operating ratio by 140 basis points.
- Operating Income of $2.4 billion was up 20%.
- The company repurchased 8.6 million shares in third quarter 2021 at an aggregate cost of $1.8 billion.
Operating Performance: Quarterly Record for Fuel Consumption Rate; Third Quarter Record for Workforce Productivity
Third Quarter 2021 Compared to Third Quarter 2020
- Network operations challenged by wildfires and other weather events, reflected in quarterly freight car velocity of 195 daily miles per car, a 13% decline.
- Quarterly locomotive productivity was 127 gross ton-miles (GTMs) per horsepower day, an 8% decline.
- Quarterly workforce productivity was 1,044 car miles per employee, a 5% improvement.
- Average maximum train length was 9,359 feet, a 4% increase.
- Fuel consumption rate, measured in gallons of fuel per thousand GTMs, improved 1%.
- Union Pacific’s year-to-date reportable personal injury rate deteriorated to 1.00 per 200,000 employee-hours compared to 0.90 for year-to-date 2020.
Third Quarter 2021 Earnings Conference Call
Union Pacific will webcast its third quarter 2021 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, October 21, 2021, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).