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Union Pacific Corporation today reported 2019 third quarter net income of $1.6 billion, or $2.22 per diluted share. This compares to $1.6 billion, or $2.15 per diluted share, in the third quarter 2018.
Third Quarter Results
Diluted earnings per share of $2.22 increased 3 percent.
Operating ratio of 59.5 percent improved 2.2 points.
Operating income of $2.2 billion was down 2 percent.
“Given the challenging volume environment we delivered solid third quarter financial results, including an all-time best quarterly operating ratio of 59.5 percent,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “The work our employees are doing as part of Unified Plan 2020 is foundational to the company’s success and I am confident there are additional improvement opportunities going forward for our customers and shareholders.”
Third Quarter Summary
Operating revenue of $5.5 billion was down 7 percent in third quarter 2019, compared to third quarter 2018. Third quarter business volumes, as measured by total revenue carloads, decreased 8 percent compared to 2018. Growth in industrial volumes was more than offset by declines in agricultural products, premium and energy shipments. In addition:
>Quarterly freight revenue declined 7 percent, compared to third quarter 2018, as core pricing gains were offset by lower volumes, decreased fuel surcharge revenue and negative mix. >Union Pacific’s 59.5 percent operating ratio was an all-time best and improved 2.2 points, compared to third quarter 2018. >The $2.09 per gallon average quarterly diesel fuel price in the third quarter 2019 was 12 percent lower than third quarter 2018. >Quarterly freight car velocity was 213 daily miles per car, a 10 percent improvement compared to the third quarter 2018. >Terminal dwell was 23.4 hours, a 20 percent improvement compared to third quarter 2018. >Union Pacific’s reportable personal injury rate was 0.82 per 200,000 employee-hours for the first three quarters 2019, compared to 0.77 for the same period 2018. >The Company repurchased 6.4 million shares in the third quarter 2019 at an aggregate cost of $1.1 billion. Union Pacific also received 3.2 million shares to complete a $2.5 billion Accelerated Share Repurchase program initiated in February 2019.
Summary of Third Quarter Freight Revenues
>Agricultural Products down 1 percent >Industrial down 1 percent >Premium down 9 percent >Energy down 20 percent
“We look forward to building on our Unified Plan 2020 successes as we provide a highly consistent and reliable service product for our customers,” Fritz said. “We remain squarely focused on driving long-term shareholder value by appropriately investing in the railroad and returning excess cash to our shareholders.”
A Union Pacific Corporation news release. up.com.
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