October 25, 2024 - TRA Newswire -

Third quarter net income at Union Pacific rose from $1.5 billion in 2023 to $1.7 billion in the period just ended this year.

• Operating revenue of $6.1 billion grew 3% driven by increased volume and core pricing gains, partially offset by business mix and reduced fuel surcharge revenue
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• Freight revenue excluding fuel surcharge revenue grew 5% as revenue carloads grew 6%
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• Operating ratio was 60.3%, an improvement of 310 basis points. Lower quarterly fuel prices positively impacted the operating ratio 120 basis points
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• Operating income of $2.4 billion increased 11%

 “Our third quarter results demonstrate the success of our strategy,” said Union Pacific Chief Executive Officer Jim Vena. “Improved safety and service performance supported solid revenue growth that we converted into double-digit improvement in third quarter operating income and earnings per share. The entire Union Pacific team is focused on delivering for our customers and shareholders; and is energized to build on these accomplishments to drive sustainable long-term success.”

The outlook for the 4th quarter this year looks to be a repeat of the last three months as UP continues to streamline its operations and boost freight deliveries. 

Union Pacific is investing $3.4 billion in capital improvements this year throughout its entire 23 state rail network. 

• Union Pacific’s year-to-date reportable personal injury and reportable derailment rates both improved
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• Quarterly freight car velocity improved 5% to 210 daily miles per car
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• Quarterly locomotive productivity improved 5% to 135 gross ton-miles (GTMs) per horsepower day
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• Quarterly workforce productivity improved 12% to 1,102 car miles per employee
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• Fuel consumption rate increased 1% to 1.058, measured in gallons of fuel per thousand GTMs