Union Pacific Corporation have reported 2024 first quarter net income of $1.6 billion, or $2.69 per diluted share. This compares to 2023 first quarter net income of $1.6 billion, or $2.67 per diluted share.
“Our team delivered strong financial results in the first quarter as we navigated a challenging freight market and normal winter conditions,” said Jim Vena, Union Pacific Chief Executive Officer. “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. 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.”
First Quarter Summary: 2024 vs. 2023
Financial Results: Improved Operational Efficiency and Core Pricing Gains Drive Increase in Operating Income; First Quarter Records for Operating Income and Net Income
Operating revenue of $6.0 billion was flat driven by core pricing gains and business mix offset by reduced fuel surcharge revenue and lower volume.
Freight revenue excluding fuel surcharge revenue grew 4% as revenue carloads declined 1%.
Operating ratio was 60.7%, an improvement of 140 basis points. Lower fuel prices during the quarter negatively impacted the operating ratio 60 basis points.
Operating income of $2.4 billion was up 3%.
Operating Performance: Improvement Across Safety, Service, and Operational Excellence; First Quarter Record for Fuel Consumption Rate
Union Pacific’s reportable personal injury and reportable derailment rates both improved.
Quarterly freight car velocity was 203 daily miles per car, a 4% improvement.
Quarterly locomotive productivity was 135 gross ton-miles (GTMs) per horsepower day, a 10% improvement.
Average maximum train length was 9,287 feet, a 1% increase.
Quarterly workforce productivity improved 1% to 1,000 car miles per employee.
Fuel consumption rate of 1.115, measured in gallons of fuel per thousand GTMs, improved 1%.
2024 Outlook
Updated
Profitability outlook gaining momentum with strong service product, improving network efficiency, and solid pricing
Restarting share repurchases in second quarter
Affirmed
Volume outlook muted by international intermodal business loss, lower coal demand, and soft economic conditions
Pricing dollars in excess of inflation dollars
No change to long-term capital allocation strategy
Capital plan of $3.4 billion
