July 21, 2016 - TRA Newswire
Union Pacific Corporation (NYSE: UNP) today reported 2016 second quarter net income of nearly $1.0 billion, or $1.17 per diluted share compared to about $1.2 billion, or $1.38 per diluted share, in the second quarter 2015.
Second Quarter Results
Diluted earnings per share of $1.17 declined 15 percent.
Operating income totaled $1.7 billion, down 15 percent.
Operating ratio of 65.2 percent, up 1.1 points.
"While the second quarter was again challenging from a volume perspective, we continued focusing on initiatives that are squarely in our control, such as being productive with our resources, providing our customers with excellent service, and improving our safety performance," said Lance Fritz,Union Pacific chairman, president and chief executive officer.
Second Quarter Summary
Operating revenue of $4.8 billion was down 12 percent in the second quarter 2016 compared to the second quarter 2015. Second quarter business volumes, as measured by total revenue carloads, declined 11 percent compared to 2015. Volume declines in coal, intermodal, industrial products, chemicals, and automotive more than offset growth in agricultural products. In addition:
Quarterly freight revenue decreased 13 percent compared to the second quarter 2015, as volume declines and lower fuel surcharge revenue more than offset core pricing gains.
Union Pacific's 65.2 percent operating ratio was unfavorable by 1.1 points compared to the second quarter 2015.
The $1.45 per gallon average quarterly diesel fuel price in the second quarter 2016 was 27 percent lower than the second quarter 2015.
Quarterly train speed, as reported to the Association of American Railroads, was 26.6 mph, 8 percent faster than the second quarter 2015.
The Company repurchased 7 million shares in the second quarter 2016 at an aggregate cost of $602 million.
Summary of Second Quarter Freight Revenues
Agricultural Products down 3 percent
Chemicals down 5 percent
Automotive down 13 percent
Industrial Products down 14 percent
Intermodal down 16 percent
Coal down 27 percent
2016 Outlook
"A soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year," Fritz said. "However, we see potential bright spots in certain segments of our business if key economic drivers continue to strengthen as they have in recent weeks. Beyond the impact of the current macro environment, we are implementing a strategy that will make us a stronger company for the future. In the months and years ahead we will continue to create competitive advantages for our customers, enhanced safety and satisfaction for our employees, strength in our communities, and solid returns for our shareholders."
Union Pacific Corporation (NYSE: UNP) today reported 2016 second quarter net income of nearly $1.0 billion, or $1.17 per diluted share compared to about $1.2 billion, or $1.38 per diluted share, in the second quarter 2015.
Second Quarter Results
Diluted earnings per share of $1.17 declined 15 percent.
Operating income totaled $1.7 billion, down 15 percent.
Operating ratio of 65.2 percent, up 1.1 points.
"While the second quarter was again challenging from a volume perspective, we continued focusing on initiatives that are squarely in our control, such as being productive with our resources, providing our customers with excellent service, and improving our safety performance," said Lance Fritz,Union Pacific chairman, president and chief executive officer.
Second Quarter Summary
Operating revenue of $4.8 billion was down 12 percent in the second quarter 2016 compared to the second quarter 2015. Second quarter business volumes, as measured by total revenue carloads, declined 11 percent compared to 2015. Volume declines in coal, intermodal, industrial products, chemicals, and automotive more than offset growth in agricultural products. In addition:
Quarterly freight revenue decreased 13 percent compared to the second quarter 2015, as volume declines and lower fuel surcharge revenue more than offset core pricing gains.
Union Pacific's 65.2 percent operating ratio was unfavorable by 1.1 points compared to the second quarter 2015.
The $1.45 per gallon average quarterly diesel fuel price in the second quarter 2016 was 27 percent lower than the second quarter 2015.
Quarterly train speed, as reported to the Association of American Railroads, was 26.6 mph, 8 percent faster than the second quarter 2015.
The Company repurchased 7 million shares in the second quarter 2016 at an aggregate cost of $602 million.
Summary of Second Quarter Freight Revenues
Agricultural Products down 3 percent
Chemicals down 5 percent
Automotive down 13 percent
Industrial Products down 14 percent
Intermodal down 16 percent
Coal down 27 percent
2016 Outlook
"A soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year," Fritz said. "However, we see potential bright spots in certain segments of our business if key economic drivers continue to strengthen as they have in recent weeks. Beyond the impact of the current macro environment, we are implementing a strategy that will make us a stronger company for the future. In the months and years ahead we will continue to create competitive advantages for our customers, enhanced safety and satisfaction for our employees, strength in our communities, and solid returns for our shareholders."