Union Pacific Reports Second Quarter 2021 Results
Omaha, Neb., July 22, 2021
Union Pacific Corporation (NYSE: UNP) 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.
Second Quarter 2021 Earnings Conference Call
Union Pacific will webcast its second quarter 2021 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, July 22, 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).
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.
Union Pacific Investor contact: Brad Stock at 402-544-4227 or firstname.lastname@example.org
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, its results of operations, and potential impacts of the COVID-19 pandemic. 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.
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