- Adjusted earnings per diluted share of $3.19
- Operating revenue up 18%
- Adjusted operating income up 13%
OMAHA,
Neb., Oct. 20, 2022 /PRNewswire/ -- Union
Pacific Corporation (NYSE: UNP) today reported 2022 third quarter
net income of $1.9 billion, or
$3.05 per diluted share. These
results include a $114 million charge
for a change to prior period accounting estimates related to new,
tentative and ratified labor agreements. Excluding the
effects of that charge, adjusted third quarter net income was
$2.0 billion, or $3.19 per diluted share. This compares to 2021
third quarter net income of $1.7
billion, or $2.57 per diluted
share.
![Union Pacific. (PRNewsFoto/Union Pacific) (PRNewsfoto/Union Pacific) Union Pacific. (PRNewsFoto/Union Pacific) (PRNewsfoto/Union Pacific)](https://mma.prnewswire.com/media/328197/union_pacific_logo.jpg)
"We made positive strides in the third quarter to increase
network fluidity and better meet customer demand," said
Lance Fritz, Union Pacific chairman,
president, and chief executive officer. "Inflationary pressures and
operational inefficiencies continued to challenge us. We reported
strong revenue and operating income growth in the quarter through
increased fuel surcharge revenue, volume gains, and solid core
pricing. As we close out 2022, we will maintain strong price
discipline while improving efficiency and service to capitalize on
the available demand."
Financial Results: Topline Growth Produces Quarterly Records
for Operating Revenue, Operating Income, Net Income, and Earnings
Per Share
Third Quarter 2022 Compared to Third Quarter
2021
- Operating revenue of $6.6 billion
was up 18% driven by higher fuel surcharge revenue, volume growth,
and core pricing gains.
- Business volumes, as measured by total revenue carloads, were
up 3%.
- Union Pacific's reported operating ratio was 59.9%. Excluding
the charge, the adjusted operating ratio of 58.2% deteriorated by
190 basis points. Lower fuel prices positively impacted the
operating ratio by 70 basis points.
- Adjusted operating income of $2.7
billion was up 13%.
- The company repurchased 9.5 million shares in third quarter
2022 at an aggregate cost of $2.1
billion.
Operating Performance: Service and Efficiency Measures
Improve Sequentially but Lag Prior Year Results; Quarterly Record
for Fuel Consumption Rate
Third Quarter 2022 Compared
to Third Quarter 2021
- Quarterly freight car velocity was 191 daily miles per car, a
2% decline.
- Quarterly locomotive productivity was 124 gross ton-miles
(GTMs) per horsepower day, a 2% decline.
- Average maximum train length increased 1% to 9,483 feet.
- Quarterly workforce productivity of 1,045 car miles per
employee was flat.
- Fuel consumption rate of 1.056, measured in gallons of fuel per
thousand GTMs, improved 1%.
- Union Pacific's year-to-date reportable personal injury rate
improved 20% to 0.80 per 200,000 employee-hours compared to 1.00
for year-to-date 2021.
2022 Guidance: Update Reflects Challenging Year
Updated
- Full year carload growth ~3%
- Full year reported operating ratio around 60%
- Capital spending of $3.4
billion
- Full year share repurchases of $6.5
billion
Affirmed
- Pricing gains in excess of inflation dollars
- Long term dividend payout target of 45% of earnings
Third Quarter 2022 Earnings Conference Call
Union Pacific will webcast its third quarter 2022 earnings
release presentation live at www.up.com/investor and via
teleconference on Thursday, October 20,
2022, 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).
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and
businesses use every day with safe, reliable, and efficient
service. Operating in 23 western states, the company connects its
customers and communities to the global economy. Trains are the
most environmentally responsible way to move freight, helping Union
Pacific protect future generations. More information about Union
Pacific is available at www.up.com.
Supplemental financial information is attached.
****
This news release and related materials contain statements
about the Company's future that are not statements of historical
fact, including specifically the statements regarding the Company's
expectations with respect to economic conditions and demand levels,
its ability to improve network performance (including those in
response to increased traffic), its results of operations, and
potential impacts of the COVID-19 pandemic and the Russian-Ukraine
conflict. These statements are, or will be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements also generally include, without
limitation, information, or statements regarding: projections,
predictions, expectations, estimates, or forecasts as to the
Company's and its subsidiaries' business, financial, and
operational results, and future economic performance; and
management's beliefs, expectations, goals, and objectives and other
similar expressions concerning matters that are not historical
facts.
Forward-looking statements should not be read as a guarantee
of future performance or results, and will not necessarily be
accurate indications of the times that, or by which, such
performance or results will be achieved. Forward-looking
information, including expectations regarding operational and
financial improvements and the Company's future performance or
results are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the statement. Important factors, including risk
factors, could affect the Company's and its subsidiaries' future
results and could cause those results or other outcomes to differ
materially from those expressed or implied in the forward-looking
statements. Information regarding risk factors and other cautionary
information are available in the Company's Annual Report on Form
10-K for 2021, which was filed with the SEC on February 4, 2022. The Company updates information
regarding risk factors if circumstances require such updates in its
periodic reports on Form 10-Q and its subsequent Annual Reports on
Form 10-K (or such other reports that may be filed with the
SEC).
Forward-looking statements speak only as of, and are based
only upon information available on, the date the statements were
made. The Company assumes no obligation to update forward-looking
information to reflect actual results, changes in assumptions, or
changes in other factors affecting forward-looking information. If
the Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
forward-looking statements. References to our website are provided
for convenience and, therefore, information on or available through
the website is not, and should not be deemed to be, incorporated by
reference herein.
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated
Statements of Income (unaudited)
|
|
Millions, Except Per
Share Amounts and
|
|
3rd
Quarter
|
|
|
Year-to-Date
|
|
Percentages, For the
Periods Ended September 30,
|
2022
|
|
|
2021
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
|
$
|
6,109
|
|
|
$
|
5,166
|
|
|
|
18
|
%
|
|
$
|
17,391
|
|
|
$
|
14,947
|
|
|
|
16
|
%
|
Other
revenues
|
|
|
457
|
|
|
|
400
|
|
|
|
14
|
|
|
|
1,304
|
|
|
|
1,124
|
|
|
|
16
|
|
Total operating
revenues
|
|
|
6,566
|
|
|
|
5,566
|
|
|
|
18
|
|
|
|
18,695
|
|
|
|
16,071
|
|
|
|
16
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
1,278
|
|
|
|
1,040
|
|
|
|
23
|
|
|
|
3,471
|
|
|
|
3,088
|
|
|
|
12
|
|
Fuel
|
|
|
932
|
|
|
|
544
|
|
|
|
71
|
|
|
|
2,586
|
|
|
|
1,452
|
|
|
|
78
|
|
Purchased services and
materials
|
|
|
626
|
|
|
|
510
|
|
|
|
23
|
|
|
|
1,809
|
|
|
|
1,478
|
|
|
|
22
|
|
Depreciation
|
|
|
563
|
|
|
|
553
|
|
|
|
2
|
|
|
|
1,677
|
|
|
|
1,652
|
|
|
|
2
|
|
Equipment and other
rents
|
|
|
215
|
|
|
|
217
|
|
|
|
(1)
|
|
|
|
660
|
|
|
|
629
|
|
|
|
5
|
|
Other
|
|
|
319
|
|
|
|
270
|
|
|
|
18
|
|
|
|
987
|
|
|
|
874
|
|
|
|
13
|
|
Total operating
expenses
|
|
|
3,933
|
|
|
|
3,134
|
|
|
|
25
|
|
|
|
11,190
|
|
|
|
9,173
|
|
|
|
22
|
|
Operating
Income
|
|
|
2,633
|
|
|
|
2,432
|
|
|
|
8
|
|
|
|
7,505
|
|
|
|
6,898
|
|
|
|
9
|
|
Other income,
net
|
|
|
124
|
|
|
|
38
|
|
|
F
|
|
|
|
334
|
|
|
|
214
|
|
|
|
56
|
|
Interest
expense
|
|
|
(315)
|
|
|
|
(290)
|
|
|
|
9
|
|
|
|
(938)
|
|
|
|
(862)
|
|
|
|
9
|
|
Income before income
taxes
|
|
|
2,442
|
|
|
|
2,180
|
|
|
|
12
|
|
|
|
6,901
|
|
|
|
6,250
|
|
|
|
10
|
|
Income taxes
|
|
|
(547)
|
|
|
|
(507)
|
|
|
|
8
|
|
|
|
(1,541)
|
|
|
|
(1,438)
|
|
|
|
7
|
|
Net
Income
|
|
$
|
1,895
|
|
|
$
|
1,673
|
|
|
|
13
|
%
|
|
$
|
5,360
|
|
|
$
|
4,812
|
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
3.05
|
|
|
$
|
2.58
|
|
|
|
18
|
%
|
|
$
|
8.56
|
|
|
$
|
7.31
|
|
|
|
17
|
%
|
Earnings per share -
diluted
|
|
$
|
3.05
|
|
|
$
|
2.57
|
|
|
|
19
|
|
|
$
|
8.54
|
|
|
$
|
7.29
|
|
|
|
17
|
|
Weighted average
number of shares - basic
|
|
|
620.4
|
|
|
|
648.7
|
|
|
|
(4)
|
|
|
|
626.1
|
|
|
|
658.3
|
|
|
|
(5)
|
|
Weighted average
number of shares - diluted
|
|
|
621.5
|
|
|
|
650.3
|
|
|
|
(4)
|
|
|
|
627.4
|
|
|
|
659.9
|
|
|
|
(5)
|
|
Dividends declared per
share
|
|
$
|
1.30
|
|
|
$
|
1.07
|
|
|
|
21
|
|
|
$
|
3.78
|
|
|
$
|
3.11
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
|
59.9
|
%
|
|
|
56.3
|
%
|
|
|
3.6
|
pts
|
|
|
59.9
|
%
|
|
|
57.1
|
%
|
|
|
2.8
|
pts
|
Effective Tax
Rate
|
|
|
22.4
|
%
|
|
|
23.3
|
%
|
|
|
(0.9)
|
pts
|
|
|
22.3
|
%
|
|
|
23.0
|
%
|
|
|
(0.7)
|
pts
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
|
3rd
Quarter
|
|
|
Year-to-Date
|
|
For the Periods
Ended September 30,
|
|
2022
|
|
|
2021
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
880
|
|
|
$
|
731
|
|
|
|
20
|
%
|
|
$
|
2,624
|
|
|
$
|
2,292
|
|
|
|
14
|
%
|
Fertilizer
|
|
|
178
|
|
|
|
172
|
|
|
|
3
|
|
|
|
541
|
|
|
|
521
|
|
|
|
4
|
|
Food &
refrigerated
|
|
|
290
|
|
|
|
253
|
|
|
|
15
|
|
|
|
828
|
|
|
|
739
|
|
|
|
12
|
|
Coal &
renewables
|
|
|
611
|
|
|
|
531
|
|
|
|
15
|
|
|
|
1,611
|
|
|
|
1,295
|
|
|
|
24
|
|
Bulk
|
|
|
1,959
|
|
|
|
1,687
|
|
|
|
16
|
|
|
|
5,604
|
|
|
|
4,847
|
|
|
|
16
|
|
Industrial chemicals
& plastics
|
|
|
579
|
|
|
|
503
|
|
|
|
15
|
|
|
|
1,656
|
|
|
|
1,436
|
|
|
|
15
|
|
Metals &
minerals
|
|
|
601
|
|
|
|
488
|
|
|
|
23
|
|
|
|
1,648
|
|
|
|
1,330
|
|
|
|
24
|
|
Forest
products
|
|
|
390
|
|
|
|
342
|
|
|
|
14
|
|
|
|
1,140
|
|
|
|
1,006
|
|
|
|
13
|
|
Energy &
specialized markets
|
|
|
624
|
|
|
|
578
|
|
|
|
8
|
|
|
|
1,762
|
|
|
|
1,654
|
|
|
|
7
|
|
Industrial
|
|
|
2,194
|
|
|
|
1,911
|
|
|
|
15
|
|
|
|
6,206
|
|
|
|
5,426
|
|
|
|
14
|
|
Automotive
|
|
|
601
|
|
|
|
417
|
|
|
|
44
|
|
|
|
1,663
|
|
|
|
1,292
|
|
|
|
29
|
|
Intermodal
|
|
|
1,355
|
|
|
|
1,151
|
|
|
|
18
|
|
|
|
3,918
|
|
|
|
3,382
|
|
|
|
16
|
|
Premium
|
|
|
1,956
|
|
|
|
1,568
|
|
|
|
25
|
|
|
|
5,581
|
|
|
|
4,674
|
|
|
|
19
|
|
Total
|
|
$
|
6,109
|
|
|
$
|
5,166
|
|
|
|
18
|
%
|
|
$
|
17,391
|
|
|
|
14,947
|
|
|
|
16
|
%
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
190
|
|
|
|
185
|
|
|
|
3
|
%
|
|
|
590
|
|
|
|
592
|
|
|
|
-
|
%
|
Fertilizer
|
|
|
51
|
|
|
|
55
|
|
|
|
(7)
|
|
|
|
149
|
|
|
|
153
|
|
|
|
(3)
|
|
Food &
refrigerated
|
|
|
48
|
|
|
|
48
|
|
|
|
-
|
|
|
|
143
|
|
|
|
141
|
|
|
|
1
|
|
Coal &
renewables
|
|
|
243
|
|
|
|
232
|
|
|
|
5
|
|
|
|
670
|
|
|
|
604
|
|
|
|
11
|
|
Bulk
|
|
|
532
|
|
|
|
520
|
|
|
|
2
|
|
|
|
1,552
|
|
|
|
1,490
|
|
|
|
4
|
|
Industrial chemicals
& plastics
|
|
|
165
|
|
|
|
153
|
|
|
|
8
|
|
|
|
486
|
|
|
|
449
|
|
|
|
8
|
|
Metals &
minerals
|
|
|
202
|
|
|
|
188
|
|
|
|
7
|
|
|
|
589
|
|
|
|
516
|
|
|
|
14
|
|
Forest
products
|
|
|
62
|
|
|
|
63
|
|
|
|
(2)
|
|
|
|
189
|
|
|
|
187
|
|
|
|
1
|
|
Energy &
specialized markets
|
|
|
140
|
|
|
|
145
|
|
|
|
(3)
|
|
|
|
412
|
|
|
|
422
|
|
|
|
(2)
|
|
Industrial
|
|
|
569
|
|
|
|
549
|
|
|
|
4
|
|
|
|
1,676
|
|
|
|
1,574
|
|
|
|
6
|
|
Automotive
|
|
|
198
|
|
|
|
166
|
|
|
|
19
|
|
|
|
580
|
|
|
|
519
|
|
|
|
12
|
|
Intermodal
[a]
|
|
|
811
|
|
|
|
809
|
|
|
|
-
|
|
|
|
2,373
|
|
|
|
2,483
|
|
|
|
(4)
|
|
Premium
|
|
|
1,009
|
|
|
|
975
|
|
|
|
3
|
|
|
|
2,953
|
|
|
|
3,002
|
|
|
|
(2)
|
|
Total
|
|
|
2,110
|
|
|
|
2,044
|
|
|
|
3
|
%
|
|
|
6,181
|
|
|
|
6,066
|
|
|
|
2
|
%
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
4,641
|
|
|
$
|
3,937
|
|
|
|
18
|
%
|
|
$
|
4,449
|
|
|
$
|
3,869
|
|
|
|
15
|
%
|
Fertilizer
|
|
|
3,504
|
|
|
|
3,125
|
|
|
|
12
|
|
|
|
3,634
|
|
|
|
3,398
|
|
|
|
7
|
|
Food &
refrigerated
|
|
|
6,017
|
|
|
|
5,246
|
|
|
|
15
|
|
|
|
5,809
|
|
|
|
5,235
|
|
|
|
11
|
|
Coal &
renewables
|
|
|
2,514
|
|
|
|
2,298
|
|
|
|
9
|
|
|
|
2,403
|
|
|
|
2,146
|
|
|
|
12
|
|
Bulk
|
|
|
3,685
|
|
|
|
3,244
|
|
|
|
14
|
|
|
|
3,612
|
|
|
|
3,252
|
|
|
|
11
|
|
Industrial chemicals
& plastics
|
|
|
3,508
|
|
|
|
3,277
|
|
|
|
7
|
|
|
|
3,404
|
|
|
|
3,195
|
|
|
|
7
|
|
Metals &
minerals
|
|
|
2,969
|
|
|
|
2,596
|
|
|
|
14
|
|
|
|
2,799
|
|
|
|
2,577
|
|
|
|
9
|
|
Forest
products
|
|
|
6,347
|
|
|
|
5,457
|
|
|
|
16
|
|
|
|
6,044
|
|
|
|
5,390
|
|
|
|
12
|
|
Energy &
specialized markets
|
|
|
4,434
|
|
|
|
3,996
|
|
|
|
11
|
|
|
|
4,273
|
|
|
|
3,924
|
|
|
|
9
|
|
Industrial
|
|
|
3,852
|
|
|
|
3,482
|
|
|
|
11
|
|
|
|
3,702
|
|
|
|
3,448
|
|
|
|
7
|
|
Automotive
|
|
|
3,030
|
|
|
|
2,500
|
|
|
|
21
|
|
|
|
2,866
|
|
|
|
2,488
|
|
|
|
15
|
|
Intermodal
[a]
|
|
|
1,672
|
|
|
|
1,424
|
|
|
|
17
|
|
|
|
1,651
|
|
|
|
1,362
|
|
|
|
21
|
|
Premium
|
|
|
1,939
|
|
|
|
1,608
|
|
|
|
21
|
|
|
|
1,890
|
|
|
|
1,557
|
|
|
|
21
|
|
Average
|
|
$
|
2,895
|
|
|
$
|
2,528
|
|
|
|
15
|
%
|
|
$
|
2,814
|
|
|
$
|
2,464
|
|
|
|
14
|
%
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
Sep.
30,
|
Dec. 31,
|
|
Millions, Except
Percentages
|
|
2022
|
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,267
|
|
|
$
|
960
|
|
Short-term
investments
|
|
|
46
|
|
|
|
46
|
|
Other current
assets
|
|
|
3,092
|
|
|
|
2,545
|
|
Investments
|
|
|
2,314
|
|
|
|
2,241
|
|
Properties,
net
|
|
|
55,689
|
|
|
|
54,871
|
|
Operating lease
assets
|
|
|
1,703
|
|
|
|
1,787
|
|
Other
assets
|
|
|
1,232
|
|
|
|
1,075
|
|
Total assets
|
|
$
|
65,343
|
|
|
$
|
63,525
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Common Shareholders' Equity
|
|
|
|
|
|
|
|
|
Debt due within one
year
|
|
$
|
1,678
|
|
|
$
|
2,166
|
|
Other current
liabilities
|
|
|
4,034
|
|
|
|
3,578
|
|
Debt due after one
year
|
|
|
31,744
|
|
|
|
27,563
|
|
Operating lease
liabilities
|
|
|
1,303
|
|
|
|
1,429
|
|
Deferred income
taxes
|
|
|
12,868
|
|
|
|
12,675
|
|
Other long-term
liabilities
|
|
|
1,973
|
|
|
|
1,953
|
|
Total
liabilities
|
|
|
53,600
|
|
|
|
49,364
|
|
Total common
shareholders' equity
|
|
|
11,743
|
|
|
|
14,161
|
|
Total liabilities and
common shareholders' equity
|
|
$
|
65,343
|
|
|
$
|
63,525
|
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolidated
Statements of Cash Flows (unaudited)
|
|
Millions,
|
|
Year-to-Date
|
|
for the Periods
Ended September 30,
|
|
2022
|
|
|
2021
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,360
|
|
|
$
|
4,812
|
|
Depreciation
|
|
|
1,677
|
|
|
|
1,652
|
|
Deferred income
taxes
|
|
|
180
|
|
|
|
189
|
|
Other - net
|
|
|
(147)
|
|
|
|
(150)
|
|
Cash provided by
operating activities
|
|
|
7,070
|
|
|
|
6,503
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
investments*
|
|
|
(2,690)
|
|
|
|
(1,945)
|
|
Maturities of
short-term investments
|
|
|
46
|
|
|
|
64
|
|
Purchases of
short-term investments
|
|
|
(46)
|
|
|
|
(40)
|
|
Other - net
|
|
|
131
|
|
|
|
129
|
|
Cash used in investing
activities
|
|
|
(2,559)
|
|
|
|
(1,792)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Debt issued
|
|
|
6,080
|
|
|
|
3,901
|
|
Share repurchase
programs
|
|
|
(5,497)
|
|
|
|
(5,846)
|
|
Dividends
paid
|
|
|
(2,362)
|
|
|
|
(2,045)
|
|
Debt repaid
|
|
|
(2,185)
|
|
|
|
(1,120)
|
|
Net issued/(paid) of
commercial paper
|
|
|
(203)
|
|
|
|
125
|
|
Debt
exchange
|
|
|
-
|
|
|
|
(270)
|
|
Other - net
|
|
|
(43)
|
|
|
|
(36)
|
|
Cash used in financing
activities
|
|
|
(4,210)
|
|
|
|
(5,291)
|
|
Net Change in Cash,
Cash Equivalents and Restricted Cash
|
|
|
301
|
|
|
|
(580)
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
|
983
|
|
|
|
1,818
|
|
Cash, cash equivalents,
and restricted cash at end of period
|
|
$
|
1,284
|
|
|
$
|
1,238
|
|
Free Cash
Flow**
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
$
|
7,070
|
|
|
$
|
6,503
|
|
Cash used in investing
activities
|
|
|
(2,559)
|
|
|
|
(1,792)
|
|
Dividends
paid
|
|
|
(2,362)
|
|
|
|
(2,045)
|
|
Free cash
flow
|
|
$
|
2,149
|
|
|
$
|
2,666
|
|
|
|
*
|
Capital investments
include locomotive and freight car early lease buyouts of $55
million in 2022 and $34 million in 2021.
|
**
|
Free cash flow is a
non-GAAP measure; however, we believe this measure is important to
management and investors in evaluating our financial performance
and measures our ability to generate cash without additional
external financing.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Operating and
Performance Statistics (unaudited)
|
|
|
|
3rd
Quarter
|
|
|
Year-to-Date
|
|
For the Periods
Ended September 30,
|
|
2022
|
|
|
2021
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
|
%
|
|
Operating/Performance Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight car velocity
(daily miles per car)
|
|
|
191
|
|
|
|
195
|
|
|
|
(2)
|
%
|
|
|
192
|
|
|
|
205
|
|
|
|
(6)
|
%
|
Average train speed
(miles per hour) *
|
|
|
23.7
|
|
|
|
24.2
|
|
|
|
(2)
|
|
|
|
23.8
|
|
|
|
24.8
|
|
|
|
(4)
|
|
Average terminal dwell
time (hours) *
|
|
|
24.4
|
|
|
|
24.0
|
|
|
|
2
|
|
|
|
24.3
|
|
|
|
23.5
|
|
|
|
3
|
|
Locomotive
productivity (GTMs per horsepower day)
|
|
|
124
|
|
|
|
127
|
|
|
|
(2)
|
|
|
|
126
|
|
|
|
135
|
|
|
|
(7)
|
|
Gross ton-miles (GTMs)
(millions)
|
|
|
214,999
|
|
|
|
207,059
|
|
|
|
4
|
|
|
|
634,494
|
|
|
|
607,949
|
|
|
|
4
|
|
Train length
(feet)
|
|
|
9,483
|
|
|
|
9,359
|
|
|
|
1
|
|
|
|
9,376
|
|
|
|
9,340
|
|
|
|
-
|
|
Intermodal car trip
plan compliance (%)**
|
|
|
62
|
|
|
|
66
|
|
|
|
(4)
|
pts
|
|
|
65
|
|
|
|
72
|
|
|
|
(7)
|
pts
|
Manifest/Automotive
car trip plan compliance (%)**
|
|
|
58
|
|
|
|
60
|
|
|
|
(2)
|
pts
|
|
|
59
|
|
|
|
65
|
|
|
|
(6)
|
pts
|
Workforce productivity
(car miles per employee)
|
|
|
1,045
|
|
|
|
1,044
|
|
|
|
-
|
|
|
|
1,045
|
|
|
|
1,036
|
|
|
|
1
|
|
Total employees
(average)
|
|
|
30,841
|
|
|
|
29,810
|
|
|
|
3
|
|
|
|
30,582
|
|
|
|
29,877
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive Fuel
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
|
$
|
3.96
|
|
|
$
|
2.37
|
|
|
|
67
|
%
|
|
$
|
3.64
|
|
|
$
|
2.13
|
|
|
|
71
|
%
|
Fuel consumed in
gallons (millions)
|
|
|
227
|
|
|
|
221
|
|
|
|
3
|
|
|
|
687
|
|
|
|
660
|
|
|
|
4
|
|
Fuel consumption
rate***
|
|
|
1.056
|
|
|
|
1.068
|
|
|
|
(1)
|
|
|
|
1.083
|
|
|
|
1.085
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Ton-Miles
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
18,554
|
|
|
|
17,326
|
|
|
|
7
|
%
|
|
|
59,042
|
|
|
|
57,864
|
|
|
|
2
|
%
|
Fertilizer
|
|
|
2,802
|
|
|
|
3,038
|
|
|
|
(8)
|
|
|
|
9,068
|
|
|
|
9,202
|
|
|
|
(1)
|
|
Food &
refrigerated
|
|
|
4,430
|
|
|
|
4,685
|
|
|
|
(5)
|
|
|
|
13,389
|
|
|
|
13,824
|
|
|
|
(3)
|
|
Coal &
renewables
|
|
|
25,169
|
|
|
|
24,539
|
|
|
|
3
|
|
|
|
69,977
|
|
|
|
62,791
|
|
|
|
11
|
|
Bulk
|
|
|
50,955
|
|
|
|
49,588
|
|
|
|
3
|
|
|
|
151,476
|
|
|
|
143,681
|
|
|
|
5
|
|
Industrial chemicals
& plastics
|
|
|
7,702
|
|
|
|
7,746
|
|
|
|
(1)
|
|
|
|
22,946
|
|
|
|
22,791
|
|
|
|
1
|
|
Metals &
minerals
|
|
|
10,053
|
|
|
|
8,922
|
|
|
|
13
|
|
|
|
28,460
|
|
|
|
24,382
|
|
|
|
17
|
|
Forest
products
|
|
|
6,573
|
|
|
|
6,381
|
|
|
|
3
|
|
|
|
19,892
|
|
|
|
19,405
|
|
|
|
3
|
|
Energy &
specialized markets
|
|
|
9,322
|
|
|
|
9,780
|
|
|
|
(5)
|
|
|
|
27,493
|
|
|
|
28,482
|
|
|
|
(3)
|
|
Industrial
|
|
|
33,650
|
|
|
|
32,829
|
|
|
|
3
|
|
|
|
98,791
|
|
|
|
95,060
|
|
|
|
4
|
|
Automotive
|
|
|
4,347
|
|
|
|
3,507
|
|
|
|
24
|
|
|
|
12,634
|
|
|
|
11,049
|
|
|
|
14
|
|
Intermodal
|
|
|
18,296
|
|
|
|
18,390
|
|
|
|
(1)
|
|
|
|
54,924
|
|
|
|
56,643
|
|
|
|
(3)
|
|
Premium
|
|
|
22,643
|
|
|
|
21,897
|
|
|
|
3
|
|
|
|
67,558
|
|
|
|
67,692
|
|
|
|
-
|
|
Total
|
|
|
107,248
|
|
|
|
104,314
|
|
|
|
3
|
%
|
|
|
317,825
|
|
|
|
306,433
|
|
|
|
4
|
%
|
|
|
*
|
Surface Transportation
Board (STB) reported performance measures.
|
**
|
Methodology used to
report is not comparable with the reporting to the STB under
docket number EP 770.
|
***
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Income (unaudited)
|
|
|
|
2022
|
|
Millions, Except Per
Share Amounts and Percentages,
|
|
1st
Qtr
|
|
|
2nd
Qtr
|
|
|
3rd
Qtr
|
Year-to-Date
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
|
$
|
5,440
|
|
|
$
|
5,842
|
|
|
$
|
6,109
|
|
|
$
|
17,391
|
|
Other
revenues
|
|
|
420
|
|
|
|
427
|
|
|
|
457
|
|
|
|
1,304
|
|
Total operating
revenues
|
|
|
5,860
|
|
|
|
6,269
|
|
|
|
6,566
|
|
|
|
18,695
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
1,101
|
|
|
|
1,092
|
|
|
|
1,278
|
|
|
|
3,471
|
|
Fuel
|
|
|
714
|
|
|
|
940
|
|
|
|
932
|
|
|
|
2,586
|
|
Purchased services and
materials
|
|
|
561
|
|
|
|
622
|
|
|
|
626
|
|
|
|
1,809
|
|
Depreciation
|
|
|
555
|
|
|
|
559
|
|
|
|
563
|
|
|
|
1,677
|
|
Equipment and other
rents
|
|
|
215
|
|
|
|
230
|
|
|
|
215
|
|
|
|
660
|
|
Other
|
|
|
337
|
|
|
|
331
|
|
|
|
319
|
|
|
|
987
|
|
Total operating
expenses
|
|
|
3,483
|
|
|
|
3,774
|
|
|
|
3,933
|
|
|
|
11,190
|
|
Operating
Income
|
|
|
2,377
|
|
|
|
2,495
|
|
|
|
2,633
|
|
|
|
7,505
|
|
Other income,
net
|
|
|
47
|
|
|
|
163
|
|
|
|
124
|
|
|
|
334
|
|
Interest
expense
|
|
|
(307)
|
|
|
|
(316)
|
|
|
|
(315)
|
|
|
|
(938)
|
|
Income before income
taxes
|
|
|
2,117
|
|
|
|
2,342
|
|
|
|
2,442
|
|
|
|
6,901
|
|
Income taxes
|
|
|
(487)
|
|
|
|
(507)
|
|
|
|
(547)
|
|
|
|
(1,541)
|
|
Net
Income
|
|
$
|
1,630
|
|
|
$
|
1,835
|
|
|
$
|
1,895
|
|
|
$
|
5,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
2.58
|
|
|
$
|
2.93
|
|
|
$
|
3.05
|
|
|
$
|
8.56
|
|
Earnings per share -
diluted
|
|
$
|
2.57
|
|
|
$
|
2.93
|
|
|
$
|
3.05
|
|
|
$
|
8.54
|
|
Weighted average
number of shares - basic
|
|
|
632.2
|
|
|
|
625.6
|
|
|
|
620.4
|
|
|
|
626.1
|
|
Weighted average
number of shares - diluted
|
|
|
633.6
|
|
|
|
626.8
|
|
|
|
621.5
|
|
|
|
627.4
|
|
Dividends declared per
share
|
|
$
|
1.18
|
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
$
|
3.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
|
59.4
|
%
|
|
|
60.2
|
%
|
|
|
59.9
|
%
|
|
|
59.9
|
%
|
Effective Tax
Rate
|
|
|
23.0
|
%
|
|
|
21.6
|
%
|
|
|
22.4
|
%
|
|
|
22.3
|
%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
|
2022
|
|
|
|
1st
Qtr
|
|
|
2nd
Qtr
|
|
|
3rd
Qtr
|
Year-to-Date
|
|
Freight Revenues
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
877
|
|
|
$
|
867
|
|
|
$
|
880
|
|
|
$
|
2,624
|
|
Fertilizer
|
|
|
180
|
|
|
|
183
|
|
|
|
178
|
|
|
|
541
|
|
Food &
refrigerated
|
|
|
267
|
|
|
|
271
|
|
|
|
290
|
|
|
|
828
|
|
Coal &
renewables
|
|
|
508
|
|
|
|
492
|
|
|
|
611
|
|
|
|
1,611
|
|
Bulk
|
|
|
1,832
|
|
|
|
1,813
|
|
|
|
1,959
|
|
|
|
5,604
|
|
Industrial chemicals
& plastics
|
|
|
520
|
|
|
|
557
|
|
|
|
579
|
|
|
|
1,656
|
|
Metals &
minerals
|
|
|
485
|
|
|
|
562
|
|
|
|
601
|
|
|
|
1,648
|
|
Forest
products
|
|
|
364
|
|
|
|
386
|
|
|
|
390
|
|
|
|
1,140
|
|
Energy &
specialized markets
|
|
|
552
|
|
|
|
586
|
|
|
|
624
|
|
|
|
1,762
|
|
Industrial
|
|
|
1,921
|
|
|
|
2,091
|
|
|
|
2,194
|
|
|
|
6,206
|
|
Automotive
|
|
|
501
|
|
|
|
561
|
|
|
|
601
|
|
|
|
1,663
|
|
Intermodal
|
|
|
1,186
|
|
|
|
1,377
|
|
|
|
1,355
|
|
|
|
3,918
|
|
Premium
|
|
|
1,687
|
|
|
|
1,938
|
|
|
|
1,956
|
|
|
|
5,581
|
|
Total
|
|
$
|
5,440
|
|
|
$
|
5,842
|
|
|
$
|
6,109
|
|
|
$
|
17,391
|
|
Revenue Carloads
(Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
|
205
|
|
|
|
195
|
|
|
|
190
|
|
|
|
590
|
|
Fertilizer
|
|
|
45
|
|
|
|
53
|
|
|
|
51
|
|
|
|
149
|
|
Food &
refrigerated
|
|
|
47
|
|
|
|
48
|
|
|
|
48
|
|
|
|
143
|
|
Coal &
renewables
|
|
|
225
|
|
|
|
202
|
|
|
|
243
|
|
|
|
670
|
|
Bulk
|
|
|
522
|
|
|
|
498
|
|
|
|
532
|
|
|
|
1,552
|
|
Industrial chemicals
& plastics
|
|
|
160
|
|
|
|
161
|
|
|
|
165
|
|
|
|
486
|
|
Metals &
minerals
|
|
|
182
|
|
|
|
205
|
|
|
|
202
|
|
|
|
589
|
|
Forest
products
|
|
|
64
|
|
|
|
63
|
|
|
|
62
|
|
|
|
189
|
|
Energy &
specialized markets
|
|
|
131
|
|
|
|
141
|
|
|
|
140
|
|
|
|
412
|
|
Industrial
|
|
|
537
|
|
|
|
570
|
|
|
|
569
|
|
|
|
1,676
|
|
Automotive
|
|
|
190
|
|
|
|
192
|
|
|
|
198
|
|
|
|
580
|
|
Intermodal
[a]
|
|
|
757
|
|
|
|
805
|
|
|
|
811
|
|
|
|
2,373
|
|
Premium
|
|
|
947
|
|
|
|
997
|
|
|
|
1,009
|
|
|
|
2,953
|
|
Total
|
|
|
2,006
|
|
|
|
2,065
|
|
|
|
2,110
|
|
|
|
6,181
|
|
Average Revenue
per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain & grain
products
|
|
$
|
4,269
|
|
|
$
|
4,451
|
|
|
$
|
4,641
|
|
|
$
|
4,449
|
|
Fertilizer
|
|
|
4,016
|
|
|
|
3,437
|
|
|
|
3,504
|
|
|
|
3,634
|
|
Food &
refrigerated
|
|
|
5,637
|
|
|
|
5,770
|
|
|
|
6,017
|
|
|
|
5,809
|
|
Coal &
renewables
|
|
|
2,262
|
|
|
|
2,426
|
|
|
|
2,514
|
|
|
|
2,403
|
|
Bulk
|
|
|
3,508
|
|
|
|
3,642
|
|
|
|
3,685
|
|
|
|
3,612
|
|
Industrial chemicals
& plastics
|
|
|
3,247
|
|
|
|
3,455
|
|
|
|
3,508
|
|
|
|
3,404
|
|
Metals &
minerals
|
|
|
2,660
|
|
|
|
2,755
|
|
|
|
2,969
|
|
|
|
2,799
|
|
Forest
products
|
|
|
5,672
|
|
|
|
6,128
|
|
|
|
6,347
|
|
|
|
6,044
|
|
Energy &
specialized markets
|
|
|
4,219
|
|
|
|
4,161
|
|
|
|
4,434
|
|
|
|
4,273
|
|
Industrial
|
|
|
3,574
|
|
|
|
3,674
|
|
|
|
3,852
|
|
|
|
3,702
|
|
Automotive
|
|
|
2,640
|
|
|
|
2,919
|
|
|
|
3,030
|
|
|
|
2,866
|
|
Intermodal
[a]
|
|
|
1,566
|
|
|
|
1,711
|
|
|
|
1,672
|
|
|
|
1,651
|
|
Premium
|
|
|
1,782
|
|
|
|
1,943
|
|
|
|
1,939
|
|
|
|
1,890
|
|
Average
|
|
$
|
2,711
|
|
|
$
|
2,830
|
|
|
$
|
2,895
|
|
|
$
|
2,814
|
|
|
|
[a]
|
For intermodal
shipments each container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Non-GAAP Measures Reconciliation to GAAP
|
|
|
|
Adjusted Debt /
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Millions, Except
Ratios
|
|
Sep.
30,
|
|
|
Dec.
31,
|
|
for the Trailing
Twelve Months Ended [a]
|
|
2022
|
|
|
2021
|
|
Net income
|
|
$
|
7,071
|
|
|
$
|
6,523
|
|
Add:
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,058
|
|
|
|
1,955
|
|
Depreciation
|
|
|
2,233
|
|
|
|
2,208
|
|
Interest
expense
|
|
|
1,233
|
|
|
|
1,157
|
|
EBITDA
|
|
$
|
12,595
|
|
|
$
|
11,843
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
(417)
|
|
|
|
(297)
|
|
Interest on operating
lease liabilities [b]
|
|
|
52
|
|
|
|
56
|
|
Adjusted
EBITDA
|
|
$
|
12,230
|
|
|
$
|
11,602
|
|
Debt
|
|
$
|
33,422
|
|
|
$
|
29,729
|
|
Operating lease
liabilities
|
|
|
1,629
|
|
|
|
1,759
|
|
Unfunded/(funded)
pension and OPEB, net of tax cost/(benefit) of ($40) and
($21)
|
|
|
(139)
|
|
|
|
(72)
|
|
Adjusted
debt
|
|
$
|
34,912
|
|
|
$
|
31,416
|
|
Adjusted debt /
adjusted EBITDA
|
|
|
2.9
|
|
|
|
2.7
|
|
|
|
[a]
|
The trailing twelve
months income statement information ended September 30, 2022, is
recalculated by taking the twelve months ended December 31, 2021,
subtracting the nine months ended September 30, 2021, and adding
the nine months ended September 30, 2022.
|
[b]
|
Represents the
hypothetical interest expense we would incur (using the incremental
borrowing rate) if the property under our operating leases were
owned or accounted for as finance leases.
|
|
|
*
|
Total debt plus
operating lease liabilities plus after-tax unfunded pension and
OPEB (other postretirement benefit) obligations divided by net
income plus income tax expense, depreciation, amortization,
interest expense, and adjustments for other income and interest on
operating lease liabilities. Adjusted debt to adjusted EBITDA
(earnings before interest, taxes, depreciation, amortization, and
adjustments for other income and interest on operating lease
liabilities) is considered a non-GAAP financial measure
by SEC Regulation G and Item 10 of SEC Regulation S-K and may not
be defined and calculated by other companies in the same manner. We
believe this measure is important to management and
investors in evaluating the Company's ability to sustain given debt
levels (including leases) with the cash generated from operations.
In addition, a comparable measure is used by rating agencies when
reviewing the Company's credit rating. Adjusted debt to adjusted
EBITDA should be considered in addition to, rather than as a
substitute for, net income. The table above provides a
reconciliation from net income to adjusted debt to adjusted
EBITDA. At both September 30, 2022, and December
31, 2021, the incremental borrowing rate on operating lease
liabilities was 3.2%.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES
Non-GAAP Measures Reconciliation to GAAP
|
|
Financial
Performance*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions, Except Per
Share Amounts
|
Reported
results
|
|
Labor
accrual
|
|
Adjusted
results
|
|
For the Three Months
Ended September 30, 2022
|
(GAAP)
|
|
adjustment
|
|
(non-GAAP)
|
|
Operating
income
|
|
$
|
2,633
|
|
|
$
|
114
|
|
|
|
$
|
2,747
|
|
Net income
|
|
|
1,895
|
|
|
|
86
|
|
|
|
|
1,981
|
|
Diluted EPS
|
|
$
|
3.05
|
|
|
$
|
0.14
|
|
|
|
$
|
3.19
|
|
Operating
ratio
|
|
|
59.9
|
%
|
|
|
(1.7)
|
|
pts
|
|
|
58.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions, Except Per
Share Amounts
|
Reported
results
|
|
Labor
accrual
|
|
Adjusted
results
|
|
For the Nine Months
Ended September 30, 2022
|
(GAAP)
|
|
adjustment
|
|
(non-GAAP)
|
|
Operating
income
|
|
$
|
7,505
|
|
|
$
|
114
|
|
|
|
$
|
7,619
|
|
Net income
|
|
|
5,360
|
|
|
|
86
|
|
|
|
|
5,446
|
|
Diluted EPS
|
|
$
|
8.54
|
|
|
$
|
0.14
|
|
|
|
$
|
8.68
|
|
Operating
ratio
|
|
|
59.9
|
%
|
|
|
(0.7)
|
|
pts
|
|
|
59.2
|
%
|
|
|
*
|
The above tables
reconcile our results for the three and nine months ended September
30, 2022, to adjust results that exclude the impact of certain
items identified as affecting comparability. We use adjusted
operating income, adjusted net income, adjusted diluted earnings
per share (EPS), and adjusted operating ratio, as applicable, among
other measures, to evaluate our actual operating performance. We
believe these non-GAAP financial measures provide valuable
information regarding earnings and business trends by excluding
specific items that we believe are not indicative of our ongoing
operating results of our business, providing a useful way for
investors to make a comparison of our performance over time and
against other companies in our industry. Since these are not
measures of performance calculated in accordance with GAAP, they
should be considered in addition to, rather than as a substitute
for, operating income, net income, diluted EPS, and operating ratio
as indicators of operating performance.
|
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SOURCE Union Pacific Corporation