Vena: UP delivered 'strong' results in Q1

Union Pacific Railroad today reported first-quarter 2024 net income of $1.6 billion, or $2.69 per diluted share, compared to $1.6 billion, or $2.67 per diluted share, in first-quarter 2023.

The Class I's operating revenue of $6 billion was flat compared to a year ago, driven by core pricing gains and business mix offset by reduced fuel surcharge revenue and lower volume, according to a UP press release.

Freight revenue, excluding fuel surcharge revenue, grew 4% as revenue carloads declined 1%. Operating income of $2.4 billion rose 3% versus last year's level.

UP posted an operating ratio of 60.7% in the quarter, down from 62.1% a year ago.

"Our team delivered strong financial results in the first quarter as we navigated a challenging freight market and normal winter conditions," said UP CEO Jim Vena in a press release.

"These results build on the momentum we established as we exited 2023 and provide further proof of what’s possible as we strive to be the best in safety, service, and operational excellence," Vena added. "This is a great start to the year, but we understand there’s work to be done to achieve our goals and meet our stakeholders’ expectations."

Also in Q1 2024 versus Q1 2023:
• the reportable personal injury and reportable derailment rates both improved;
• freight-car velocity was 203 daily miles per car, a 4% improvement;
• locomotive productivity was 135 gross ton-miles (GTMs) per horsepower day, a 10% improvement;
• average maximum train length was 9,287 feet, up 1%;
• workforce productivity improved 1% to 1,000 car miles per employee; and
•  fuel consumption rate of 1.115, measured in gallons of fuel per thousand GTMs, improved 1%. 

In an update, UP stated its 2024 profitability outlook is "gaining momentum with strong service product, improving network efficiency and solid pricing."

The company affirmed that its 2024 volume outlook is muted by an international intermodal business loss, lower coal demand and soft economic conditions. UP also affirmed a $3.4 billion capital plan for 2024.