The Omaha, Neb.-based Class I railway increased net income, operating revenues and volumes during the first quarter of 2017 from the corresponding 2016 period.
Union Pacific Corp. reported its first quarter results for 2017 with a net income of nearly $1.1 billion – a first quarter record of $1.32 per diluted share.
The Omaha, Neb.-based Class I railway said this compared to a net income of about $1 billion, or $1.16 per diluted share, for the first quarter of 2016.
Operating revenues of $5.1 billion increased 6 percent year-over-year, with business volumes inching up 2 percent. Increased volumes of coal, agricultural products and industrial products offset declines in chemical and automotive volumes.
Intermodal volumes remained flat, as increases in international intermodal offset declines in domestic shipments.
The first quarter of 2017 saw freight revenues increase by 6 percent year-over-year due to volumes growth, highter fuel surcharge revenues and core pricing gains.
In summary, freight revenues saw automotive and chemical go down 1 percent each with intermodal up 3 percent, agricultural products up 7 percent, industrial products up 9 percent and coal up 25 percent.
The railway’s 65.1 percent operating ratio for the quarter was flat compared to 2016. “Higher fuel prices negatively impacted the operating ratio by about 1.3 points,” the railway said.
Union Pacific also said the $1.75 per gallon average diesel fuel price for the quarter was 40 percent higher year-over-year.
During the quarter, Union Pacific repurchased 7.5 million shares for an aggregate cost of $802 million.
Union Pacific is currently investing heavily in state rail infrastructure with funds stemming from the company’s $3.1 billion capital plan for 2017. Latest investments announced include the railway’s $57 million investment in its Nebraska rail infrastructure, and a $26.8 million investment in its Nevada rail infrastructure.
“With a solid first quarter performance behind us, we will continue to press ahead with our volume, pricing, and productivity initiatives through the remainder of the year,” Union Pacific Chairman, President and CEO Lance Fritz said. “Our six-track value strategy will keep us intensely focused on effectively leveraging volume growth, while providing our customers an excellent experience and our shareholders a solid return on investment.”
Union Pacific posts strong Q1 results
