UP produces 'record' quarterly results

Union Pacific Railroad today reported 2021 second-quarter net income of $1.8 billion, or $2.72 per diluted share, compared to $1.1 billion, or $1.67 per diluted share, a year ago.

The Class I leveraged volume growth, core pricing gains and productivity to produce record quarterly results, UP Chairman, President and Chief Executive Officer Lance Fritz said in a press release.

Compared with Q2 2020 results, UP's operating revenue of $5.5 billion jumped 30%; business volumes, as measured by total revenue carloads, at 2 million units climbed 22%; and operating income of $2.5 billion soared 50%.

UP's operating ratio improved to 55.1% during the quarter from 61% a year ago. Higher fuel prices negatively impacted the operating ratio by 210 basis points, UP officials said.

Also during Q2, UP’s freight car velocity was 213 daily miles per car, a 6% decline; locomotive productivity was 140 gross ton-miles per horsepower day, a 3% improvement; average maximum train length was 9,410 feet, a 9% increase; and fuel consumption rate (measured in gallons of fuel per thousand gross ton-miles) improved 3%.

"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," said Fritz. "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."