July 26, 2024 - TRA Newswire -

"Our second quarter performance demonstrates the team's ability to deliver strong results". The words of Jim Vena, Union Pacific Chief Executive Officer. 

UP grew it's Q2 profit by seven percent even while the number of shipments it hauled remained flat. Company officials attributed the quarter's strong performance to making the railroad run more efficiently.

"This provides further proof that our strategy to be the best in safety, service and operational excellence will drive success", according to Vena. " The entire Union Pacific team is energized behind this strategy and wants to win. As we build on the foundation we've laid over the past 12 months, we look forward to demonstrating what's possible for our great company."

The railroad reported second quarter 2024 net income of $1.7 billion ($2.74 per diluted share) compared to 2023's second quarter net of $1.6 billion ($2.57 per diluted share).

Vena served as Union Pacific chief operating officer from 2019-2020, He served as senior advisor to the chairman in 2021 and returned to Union Pacific as CEO in August 2023 after a hedge fund began to pressure the railroad over profitability issues.

Significant strides were made in Union Pacific's operating ratio which improved 300 base points to 60.0%. 

Operating revenue of $6.0 billion was up 1%, driven by core pricing gains and increased volume partially offset by business mix and reduced fuel surcharges.

Freight revenue, minus fuel surcharge revenue, grew 2% as carloads grew slightly.

Operating income of $2.4 billion was up 9%.

Other interesting facts from Union Pacific's second quarter report:

• The average freight car moved 201 daily miles.  That number was flat.
• Locomotive productivity was up 6%, 134 gross ton-miles (GTM)
• Average maximum train length was 9,522 feet, a 2% increase
• Workforce productivity improved 5%, to 1,031 miles per employee
• Year-to-date reportable injury and derailment rates both improved

Photo credit: Union Pacific