News Releases


Union Pacific Reports First Quarter 2016 Results

First Quarter Operating Ratio of 65.1 percent

Omaha, Neb., April 21, 2016

Union Pacific Corporation (NYSE: UNP) today reported 2016 first quarter net income of nearly $1.0 billion, or $1.16 per diluted share compared to about $1.2 billion, or $1.30 per diluted share, in the first quarter 2015.

First Quarter Results

  • Diluted earnings per share of $1.16 declined 11 percent.
  • Operating income totaled $1.7 billion, down 15 percent.
  • Operating ratio of 65.1 percent, up 0.3 points.

"In this challenging volume environment, we have continued our intense focus on operating safely and efficiently, managing our resources, and improving our customer experience," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "As a result, the quarterly operating ratio came in at 65.1 percent, up only 0.3 points from last year, as solid core pricing and productivity improvements helped to offset an 8 percent decline in total volumes."

First Quarter Summary

Operating revenue of $4.8 billion was down 14 percent in the first quarter 2016 compared to the first quarter 2015. First quarter business volumes, as measured by total revenue carloads, declined 8 percent compared to 2015. Volume declines in coal, industrial products, agricultural products, and intermodal more than offset growth in automotive. Chemicals volume was flat compared to 2015 as declines in crude oil and fertilizer carloads offset growth in other chemicals shipments. In addition:

  • Quarterly freight revenue decreased 14 percent compared to the first quarter 2015, as volume declines, lower fuel surcharge revenue, and negative business mix more than offset core pricing gains.
  • Union Pacific's 65.1 percent operating ratio was unfavorable by 0.3 points compared to the first quarter 2015. The net impact of lower fuel prices during the quarter negatively impacted the operating ratio by about 0.5 points.
  • The $1.25 per gallon average quarterly diesel fuel price in the first quarter 2016 was 36 percent lower than the first quarter 2015.
  • Quarterly train speed, as reported to the Association of American Railroads, was 27.3 mph, 11 percent faster than the first quarter 2015.
  • Union Pacific's reportable personal injury rate of 0.75 per 200,000 employee-hours was a first quarter record, improving 12 percent compared to the first quarter 2015.
  • The Company repurchased 9.3 million shares in the first quarter 2016 at an aggregate cost of $713 million.

Summary of First Quarter Freight Revenues

  • Automotive down 1 percent
  • Chemicals down 2 percent
  • Agricultural Products down 6 percent
  • Intermodal down 9 percent
  • Industrial Products down 18 percent
  • Coal down 43 percent

2016 Outlook

"This year has brought a continuation of many of the same trends we experienced throughout most of 2015," Fritz said. "An energy market recession, low commodity prices, the strength of the U.S. dollar in a soft global economy, and muted domestic retail demand all contributed to market weakness across many of our business lines. Despite the current challenges, we will continue to adapt to new business environments, drive productivity and innovation, and improve our industry leading safety performance as we work toward our ultimate goal of zero incidents. At the same time, we will leverage the strength and diversity of the Union Pacific franchise to develop new business opportunities, provide an excellent customer experience, and generate strong long-term value for our shareholders."

First Quarter 2016 Earnings Conference Call

Union Pacific will host its first quarter 2016 earnings release presentation live over the Internet and via teleconference on Thursday, April 21, 2016 at 8:45 a.m. Eastern Time. The presentation will be webcast live over the internet on Union Pacific's website at Alternatively, the webcast can be accessed directly through the following link. Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).


Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2006-2015, Union Pacific invested approximately $33 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.

Union Pacific Investor contact: Mike Staffenbeal at 402-544-4227.

  • Supplemental financial information is attached.


This presentation 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 generate financial returns, improve network performance, productivity and cost efficiency; capital spending plans; new business development opportunities; and providing returns to its shareholders. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and 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 2015, which was filed with the SEC on February 5, 2016. 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.

The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.

Media Contact

Aaron Hunt