Union Pacific Corp

UNP

Equity

ISIN US9078181081 / Valor 979840

New York Stock Exchange, Inc (2024-12-24)

USD 229.75+1.15%

Union Pacific Corp
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About company

Union Pacific Corporation, trading under the ticker NYSE: UNP, is a cornerstone of the American transportation infrastructure, operating primarily through its principal company, Union Pacific Railroad. This entity is integral to the logistics and supply chain framework of the United States, connecting 23 states across the western two-thirds of the nation by rail. With a network that spans approximately 32,534 route miles and facilitates around 8.2 million annual carloads, Union Pacific Railroad plays a pivotal role in linking the country's major West Coast and Gulf Coast ports to eastern gateways, as well as providing exclusive rail connections to all six major Mexico gateways. Over the decade from 2013 to 2022, the corporation invested roughly $34 billion in enhancing its network and operations. Union Pacific's business is diversified across Bulk, Industrial, and Premium segments, catering to around 10,000 customers with a commitment to safe, reliable, and environmentally responsible transportation solutions.

Summarized from source with an LLMView SourceSector: Consumer Services

Net Income and Earnings Per Share

Union Pacific Corp reported a net income of $1.7 billion for the third quarter of 2024, translating to earnings of $2.75 per diluted share. This marks an increase from the third quarter of 2023, where the net income was $1.5 billion, or $2.51 per diluted share. The growth in earnings per share reflects a 10% increase year-over-year.

Operating Income and Revenue

For the third quarter of 2024, Union Pacific Corp achieved an operating income of $2.4 billion, representing an 11% increase compared to the previous year. The company's operating revenue rose to $6.1 billion, a 3% growth driven by increased volume and core pricing gains, although partially offset by business mix and reduced fuel surcharge revenue.

Freight Revenue and Operating Ratio

Union Pacific Corp's freight revenue, excluding fuel surcharge revenue, grew by 5% in the third quarter of 2024, with revenue carloads increasing by 6%. The operating ratio improved by 310 basis points to 60.3%, aided by lower quarterly fuel prices, which positively impacted the operating ratio by 120 basis points.

Operational Efficiency and Productivity

In the third quarter of 2024, Union Pacific Corp reported improvements in operational efficiency, with freight car velocity increasing by 5% to 210 daily miles per car. Locomotive productivity also improved by 5% to 135 gross ton-miles per horsepower day, while workforce productivity saw a 12% increase to 1,102 car miles per employee.

2024 Outlook and Capital Plan

Union Pacific Corp expects its fourth quarter results to remain consistent sequentially from the third quarter while showing improvement year-over-year compared to the fourth quarter of 2023. The company affirmed its positive profitability outlook, supported by strong service products and network efficiency. Union Pacific plans to repurchase approximately $1.5 billion in shares in 2024 and maintains a capital plan of $3.4 billion.

Summarized from source with an LLMView Source

Key figures

-5.68%1Y

-6.47%3Y

27.7%5Y

Performance

18.9%1Y

23.0%3Y

27.6%5Y

Volatility