This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
10/19/2023
Union Pacific Corp. today reported third-quarter 2023 net income fell 19% to $1.5 billion, or $2.51 per diluted share, compared with $1.9 billion, or $3.05 per diluted share, in the same period a year ago.
Total operating revenue slipped 10% to $5.9 billion from $6.6 billion a year ago. The decrease was driven primarily by lower fuel-surcharge revenue and lower volumes, UP officials said in a press release.
"We faced many challenges in the quarter, including continued inflationary pressures and a drop in carloads," UP CEO Jim Vena said. "Operationally we gained momentum through the quarter, which positions us to provide our customers with great service. Operating and safety metrics are showing solid improvement, as we increase asset utilization."
Business volume, as measured by total revenue carloads, decreased 3%. Q3 operating income plunged 17% to $2.2 billion.
UP's operating ratio climbed to 63.4% in the quarter from 59.9% a year ago.
Service strengthened during Q3 as resource utilization improved. During the quarter:• Freight-car velocity rose 5% to 200 daily miles per car;• Locomotive productivity increased 4% to 129 gross ton-miles per horsepower day;• Average maximum train length grew 1% to 9,537 feet;• Quarterly workforce productivity decreased 6% to 985 car miles per employee;• Fuel consumption rate was flat at 1.052, measured in gallons of fuel per thousand gross ton-miles; and• Year-to-date reportable personal injury and derailment rates improved.
The Class I is focused on its strategy of "being the best in safety, service and operational excellence as we drive growth to the railroad," Vena said.
"Through our day-to-day actions, we will continue to make improvements as we exit the year," he added.
The company's 2023 full-year outlook remains relatively unchanged, UP officials said. A softening in consumer-related volumes are likely to drive full-year volume expectations below industrial production (current forecast is 0.0%). Also, UP's updated capital plan for 2023 is $3.7 billion.