Union Pacific Corporation and Subsidiary Companies

Statement of Consolidated Income
For the Three Months Ended March 31
Dollars in Millions Except Per Share Amounts
(Unaudited)

	1998		1997		% Chg
Operating Revenues	$ 2,586		$ 2,810		-	8
Operating Expenses (a)	2,527		2,465		+	3
Operating Income	59	(b)	345		-	83
Other Income - Net	23		38		-	39
Interest Expense	(161)		(150)		+	7
Corporate Expenses	(26)		(28)		-	7
Income Before Income Taxes	(105)		205			U
Income Taxes	43		(77)			F
Net Income	($62)		$128			U
Earnings Per Share:
Basic	($0.25)		$0.52			U
Diluted	($0.25)	(c)	$0.52			U
Average Basic Shares Outstanding (MM)	246.0		245.5			--
Average Diluted Shares Outstanding (MM)	247.7		247.8			--

(a) Includes one-time merger expenses of $29 million pre-tax ($18 million after-tax or $.07 per diluted share) in 1998, $15 million pre-tax ($9 million after-tax or $.04 per diluted share) in 1997. Merger expenses include severance, relocation and certain other costs related to Union Pacific employees affected by the merger.

(b) Includes $419 million pre-tax ($260 million after-tax or $1.05 per diluted share) impact of rail congestion.

(c) Accounting regulations do not allow inclusion of common stock equivalents in a loss period since they are anti-dilutive.

Union Pacific Corporation and Subsidiary Companies

Supplemental Schedules by Operating Unit
For the Three Months Ended March 31
Dollars in Millions
(Unaudited)

	1998		1997		% Chg
Revenues:
Union Pacific Railroad Overnite Transportation Corporate Services and Other    Total	$ 2,284 257 45 $ 2,586		$ 2,563 214 33 $ 2,810		- + + -	11 20 36 8
Operating Income:
Union Pacific Railroad (a) Overnite Transportation Corporate Services and Other (incl. goodwill)    Total	$ 53 13 (7) $ 59		$ 353 - (8) $ 345		- - -	85 F 12 83
Other Income:
Real Estate Sales Interest and Other    Total	$ 15 8 $ 23		$ 23 15 $ 38		- - -	35 47 39
Net Income:
Union Pacific Railroad (a) Overnite Transportation Corporate Services and Other (incl.goodwill)    Total	($32) 10 (40) ($62)		$170 1 (43) $128		-	U F 7 U

(a) Includes $419 million pre-tax impact of rail congestion and $29 million in pre-tax merger expenses.

Union Pacific Railroad
Supplemental Data Sheet
For the Three Months Ended March 31
(Unaudited)

	1998		1997		% Chg
Commodity Revenue (000):
Energy Chemicals Agricultural Products Industrial Products Intermodal Automotive    Total	$ 496,988 389,773 315,786 435,709 357,506 230,464 $ 2,226,226		$ 512,195 433,492 403,196 476,211 414,430 237,437 $ 2,476,961		- - - - - - -	3 10 22 9 14 3 10
Revenue Carloads:
Energy Chemicals Agricultural Products Industrial Products Intermodal Automotive    Total	$ 442,094 222,798 203,177 320,602 590,115 159,400 $ 1,938,186		$ 456,504 237,218 247,303 354,471 673,932 157,472 $ 2,126,900		- - - - - + -	3 6 18 10 12 1 9
Average Revenue Per Car:
Energy Chemicals Agricultural Products Industrial Products Intermodal Automotive    Total	$ 1,124 1,749 1,554 1,359 606 1,446 $ 1,149		$ 1,122 1,827 1,630 1,343 615 1,508 $ 1,165		- - + - - -	-- 4 5 1 1 4 1

Union Pacific Railroad

Supplemental Data Sheet
For the Three Months Ended March 31
Dollars in Millions Except Operating Statistics
(Unaudited)

	1998		1997		% Chg
Operating Revenues	$ 2,284		$ 2,563		-	11
Operating Expenses: (a)
Salaries and Benefits Depreciation and Retirements Materials and Supplies Fuel and Utilities Rent Expense Other    Total Operating Income (b)	$ 884 246 132 208 356 405 $ 2,231 $ 53		$ 855 240 148 281 314 372 $ 2,210 $ 353		+ + - - + + + -	3 2 11 26 13 9 1 85
Operating Statistics:
Revenue Carloads (Thousands) Revenue Ton-Miles (Millions) Revenue/RTM Average Commodity Revenue Per Car Average Headcount for the Period Average Fuel Cost Per Gallon Fuel Consumed in Gallons (MM) Operating Ratio (%)	1,938.2 106,395 2.09 $ 1,149 52,124 64 283 97.7	¢ ¢	2,126.9 118,814 2.09 $ 1,165 52,209 75 326 86.2	¢ ¢	- - - - - +	9 10 -- 1 -- 15 13 11.5	pts.
Merger Expenses ($MM) (a)	29		15
Merger Benefits ($MM)	82		34

(a) Includes merger expenses (severance, relocation and certain other costs) related to Union Pacific employees by the merger.

(b) Includes $419 million pre-tax impact of rail congestion.

Union Pacific Railroad

Estimated Impact of Congestion
For the Three Months Ended March 31
Dollars in Millions
(Unaudited)

	1998		1997		% Chg
Operating Revenues	$ 257		$ 214		+	20
Operating Expenses:
Salaries and Benefits Depreciation and Retirements Materials and Supplies Fuel and Utilities Rent and Purchased Transportation Other    Total Operating Income (a)	$ 154 11 11 12 22 34 $ 244 $ 13		$ 136 11 9 13 14 31 $ 214 $ 0		+ + - + + +	14 -- 18 8 54 10 14 F
Operating Statistics:
Millions of Pounds Hauled - LTL Millions of Pounds Hauled - TL Millions of Pounds Hauled - Combined Revenue/CWT - LTL Revenue/CWT - TL Revenue/CWT - Combined Average Headcount for the Period Average Fuel Price Per Gallon Fuel Consumed in Gallons (Thousands) Operating Ratio (%)	2,004 116 2,120 $ 12.24 $   5.50 $ 11.87 11,443 58 13,774 94.9	¢	1,745 135 1,880 $ 11.58 $   5.00 $ 11.11 11,150 69 12,502 99.9	¢	+ - + + + + + - + -	15 14 13 6 10 7 3 15 10 5.0	pts.

(a) excludes goodwill amortization

		March 31, 1998		December 31, 1997
Assets:
	Current Assets Investments Properties - Net Intangible and Other Assets    Total	$   1,384 682 26,233 779 $ 29,078		$   1,415 624 25,977 748 $ 28,764
Liabilities and Stockholders' Equity:
	Current Portion of Long Term Debt Other Current Liabilities Debt Due After One Year Deferred Income Taxes Other Liabilities Common Stockholders' Equity    Total	$     132 2,676 9,258 6,224 2,670 8,118 $ 29,078		$     233 3,014 8,285 6,252 2,755 8,225 $ 28,764

		1998		1997
Cash From Operations:
	Net Income Depreciation and Amortization Deferred Income Taxes Other Cash From Operations	($62) 263 (29) (289) (117)		$ 128 258 35 (170) 251
Investing Activities		(553)		(434)
Financing Activities:
	Dividends Paid Debt Repaid Financings and Other - Net Total Cash Provided (Used) by Financing Activities	(106) (888) 1,765 771		(105) (348) 539 86
Net Change in Cash and Temporary Investments		$101		($97)

	1998				1997
	Pre-tax		After-tax		Pre-tax		After-tax
Union Pacific Railroad
Merger Implementation Expenses    Weather-related matters       (snow, flooding, etc.)    Sale of Escanaba line    Total	($ 29)		($ 18) ($ 18)		($ 15) (18) 20		($ 9) (11) 13 ($ 7)

(Many of the comments we have made this morning contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking information is based on information available at this time, and is subject to risks and uncertainties that could cause actual results to differ materially from those expressed herein. Important factors that could cause such differences include, but are not limited to, whether Union Pacific Railroad is fully successful in overcoming its congestion-related problems and implementing its Service Recovery Plan, industry competition, regulatory developments, natural events such as severe weather, floods and earthquakes, the effects of adverse general economic conditions, fuel prices, labor strikes, the impact of the year 2000 systems problems and the ultimate outcome of shipper claims related to congestion, environmental investigations or proceedings and other types of claims and litigation.)

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