View:
Download DOC
Download PDF
Download XLS
Download XBRL
unp-20200723x8k
false000010088500001008852020-07-232020-07-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2020 (July 23, 2020)

UNION PACIFIC CORPORATION

(Exact name of registrant as specified in its charter)

Utah

1-6075

13-2626465

(State or other jurisdiction

(Commission

(IRS Employer

of Incorporation)

File Number)

Identification No.)

1400 Douglas Street, Omaha, Nebraska

68179

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (402) 544-5000

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class

Trading Symbol

Name of each exchange on which registered

Common Stock (Par Value $2.50 per share)

UNP

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

¨

Item 2.02 Results of Operations and Financial Condition.

On July 23, 2020, Union Pacific Corporation issued a press release announcing its financial results for the quarter ended June 30, 2020. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

99.1Press Release of Union Pacific Corporation, dated July 23, 2020, announcing its financial results for the quarter ended June 30, 2020.

104Cover Page Interactive Data File (embedded within the Inline XBRL document).


‎

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 23, 2020

UNION PACIFIC CORPORATION

By:

/s/ Jennifer L. Hamann

Jennifer L. Hamann

Executive Vice President and

Chief Financial Officer
Ex 991

Exhibit 99.1



Union Pacific Reports Second Quarter 2020 Results



FOR IMMEDIATE RELEASE



Omaha, Neb., July 23, 2020 – Union Pacific Corporation (NYSE: UNP) today reported 2020 second quarter net income of $1.1 billion, or $1.67 per diluted share. This compares to $1.6 billion, or $2.22 per diluted share, in the second quarter 2019.

“The Second Quarter proved very challenging as we faced a volume decline of 20 percent due to the economic impact of the COVID-19 pandemic.  Demonstrating the transformation our Company is experiencing through the implementation of Unified Plan 2020, we were able to largely mitigate the impact of that volume loss,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “Our dedicated employees are feeling a very real impact from this pandemic, making tangible sacrifices. Despite this adversity, they continue to make strides to improve the safety of our railroad, while providing our customers an uninterrupted, enhanced service product.”

Second Quarter Summary

Operating revenue of $4.2 billion was down 24 percent in second quarter 2020, compared to second quarter 2019. Second quarter business volumes, as measured by total revenue carloads, decreased 20 percent compared to 2019. Volumes for all three business teams – bulk, industrial, and premium – declined in the quarter due to the deteriorating economic conditions brought on by the COVID-19 pandemic. In addition:



·

Quarterly freight revenue declined 24 percent, compared to second quarter 2019, as core pricing gains were offset by lower volumes, negative business mix and decreased fuel surcharge revenue.

·

Union Pacific’s 61 percent operating ratio increased 1.4 points compared to second quarter 2019.

-more-

 

 

 

-2-

 



 

 



Operating Ratio

Earnings Per Diluted Share

Second Quarter 2019

59.6%

$2.22

2019 Weather / Insurance Recovery

      0.9  pts

$0.05

2019 Payroll Tax Refund

     (0.7) pts

($0.04)

Fuel Impact

      2.7  pts

$0.09

Core Results

          (4.3) pts

($0.72)

Illinois Tollway Real Estate Sale

N/A

$0.07

Second Quarter 2020

61.0%

$1.67



·

Union Pacific recognized a $69 million gain from a real estate sale to the Illinois State Toll Highway Authority.

·

The $1.26 per gallon average quarterly diesel fuel price in second quarter 2020 was 43 percent lower than second quarter 2019.

·

Union Pacific’s first half reportable personal injury rate of 0.83 incidents per 200,000 employee hours improved 5 percent compared to first half 2019.

·

Quarterly freight car velocity was 225 daily miles per car, an  11 percent improvement compared to second quarter 2019.

·

Quarterly locomotive productivity was 136 GTMs per horsepower day, a 12 percent improvement compared to second quarter 2019.

·

Average maximum train length was 8,664 feet, a 13 percent increase compared to second quarter 2019.

Summary of Second Quarter Freight Revenues

·

Bulk down 17 percent

·

Industrial down 23 percent

·

Premium down 33 percent

 

-more-

 

 

 

-3-

 

2020 Outlook

Although the state of global economy is somewhat uncertain given the lingering impact of the COVID-19 pandemic, Union Pacific currently expects full year 2020 carload volumes to be down around 10 percent or so compared to 2019.

“Our first priority continues to be the health and safety of our employees during the pandemic, as they perform critical service to support economic recovery,” Fritz said. “Our ability to be nimble and flexible in adjusting our resources to rapidly changing volumes, while providing a high level service product, demonstrates the strength of our service model.  We remain focused on providing our customers with a safe, reliable and efficient service product.”



Second Quarter 2020 Earnings Conference Call

Union Pacific will webcast its second quarter 2020 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, July 23, 2020 at 8:45 a.m. Eastern Time. Alternatively, the webcast can be accessed directly through the following link. Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).





ABOUT UNION PACIFIC

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.



Union Pacific Investor contact: Brad Stock at 402-544-4227 or bkstock@up.com

Union Pacific Media contact: Raquel Espinoza at 402-544-5034 or respinoza@up.com

 

-more-

 

 

 

 

-4-

 

Supplemental financial information is attached.



****

This news release and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Company’s expectations with respect to economic conditions and demand levels,  its ability to improve network performance, its results of operations, and potential impacts of the COVID-19 pandemic.  These statements are, or will be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: projections, predictions, expectations, estimates or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.



Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Company’s Annual Report on Form 10-K for 2019, which was filed with the SEC on February 7, 2020, and the Company’s Quarterly Report on Form 10-Q which was filed with the SEC on April 23, 2020. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).



Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.



###







 

 

 

 

 

 

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Millions, Except Per Share Amounts and Percentages,

2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2020  2019 

%

 

 

 2020  2019 

%

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

     Freight revenues

$

 3,972 

$

 5,236  (24)

%

 

$

 8,852 

$

 10,246  (14)

%

     Other

 

 272 

 

 360  (24)

 

 

 

 621 

 

 734  (15)

 

Total operating revenues

 

 4,244 

 

 5,596  (24)

 

 

 

 9,473 

 

 10,980  (14)

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 905 

 

 1,145  (21)

 

 

 

 1,964 

 

 2,350  (16)

 

     Depreciation

 

 551 

 

 551 

 -

 

 

 

 1,098 

 

 1,100 

 -

 

     Purchased services and materials

 

 441 

 

 573  (23)

 

 

 

 962 

 

 1,149  (16)

 

     Fuel

 

 247 

 

 560  (56)

 

 

 

 681 

 

 1,091  (38)

 

     Equipment and other rents

 

 211 

 

 260  (19)

 

 

 

 438 

 

 518  (15)

 

     Other

 

 235 

 

 247  (5)

 

 

 

 533 

 

 552  (3)

 

Total operating expenses

 

 2,590 

 

 3,336  (22)

 

 

 

 5,676 

 

 6,760  (16)

 

Operating Income

 

 1,654 

 

 2,260  (27)

 

 

 

 3,797 

 

 4,220  (10)

 

     Other income

 

 131 

 

 57 

F  

 

 

 

 184 

 

 134  37 

 

     Interest expense

 

 (289)

 

 (259) 12 

 

 

 

 (567)

 

 (506) 12 

 

Income before income taxes

 

 1,496 

 

 2,058  (27)

 

 

 

 3,414 

 

 3,848  (11)

 

Income taxes

 

 (364)

 

 (488) (25)

 

 

 

 (808)

 

 (887) (9)

 

Net Income

$

 1,132 

$

 1,570  (28)

%

 

$

 2,606 

$

 2,961  (12)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 1.67 

$

 2.23  (25)

%

 

$

 3.83 

$

 4.16  (8)

%

     Earnings per share - diluted

$

 1.67 

$

 2.22  (25)

 

 

$

 3.82 

$

 4.15  (8)

 

     Weighted average number of shares - basic

 

 677.7 

 

 705.5  (4)

 

 

 

 681.0 

 

 711.2  (4)

 

     Weighted average number of shares - diluted

 

 679.2 

 

 708.0  (4)

 

 

 

 682.7 

 

 713.8  (4)

 

     Dividends declared per share

$

 0.97 

$

 0.88  10 

 

 

$

 1.94 

$

 1.76  10 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 61.0% 

 

 59.6%  1.4 

pts

 

 

 59.9% 

 

 61.6%  (1.7)

pts

Effective Tax Rate

 

 24.3% 

 

 23.7%  0.6 

pts

 

 

 23.7% 

 

 23.1%  0.6 

pts

1

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2020  2019 

%

 

 

 2020  2019 

%

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 644 

$

 711  (9)

 %

 

$

 1,333 

$

 1,376  (3)

 %

     Fertilizer

 

 168 

 

 172  (2)

 

 

 

 342 

 

 331  3 

 

     Food & refrigerated

 

 205 

 

 272  (25)

 

 

 

 455 

 

 514  (11)

 

     Coal & renewables

 

 369 

 

 523  (29)

 

 

 

 790 

 

 1,077  (27)

 

   Bulk

 

 1,386 

 

 1,678  (17)

 

 

 

 2,920 

 

 3,298  (11)

 

     Industrial chemicals & plastics

 

 435 

 

 482  (10)

 

 

 

 930 

 

 934 

 -

 

     Metals & minerals

 

 368 

 

 557  (34)

 

 

 

 837 

 

 1,093  (23)

 

     Forest products

 

 266 

 

 303  (12)

 

 

 

 569 

 

 588  (3)

 

     Energy & specialized markets

 

 431 

 

 595  (28)

 

 

 

 1,058 

 

 1,161  (9)

 

   Industrial

 

 1,500 

 

 1,937  (23)

 

 

 

 3,394 

 

 3,776  (10)

 

     Automotive

 

 189 

 

 554  (66)

 

 

 

 713 

 

 1,074  (34)

 

     Intermodal

 

 897 

 

 1,067  (16)

 

 

 

 1,825 

 

 2,098  (13)

 

   Premium

 

 1,086 

 

 1,621  (33)

 

 

 

 2,538 

 

 3,172  (20)

 

Total

$

 3,972 

$

 5,236  (24)

 %

 

$

 8,852 

$

 10,246  (14)

%

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 

 167 

 

 178  (6)

 %

 

 

 342 

 

 347  (1)

%

     Fertilizer

 

 53 

 

 54  (2)

 

 

 

 99 

 

 97  2 

 

     Food & refrigerated

 

 41 

 

 52  (21)

 

 

 

 89 

 

 99  (10)

 

     Coal & renewables

 

 186 

 

 244  (24)

 

 

 

 394 

 

 500  (21)

 

   Bulk

 

 447 

 

 528  (15)

 

 

 

 924 

 

 1,043  (11)

 

     Industrial chemicals & plastics

 

 141 

 

 157  (10)

 

 

 

 295 

 

 305  (3)

 

     Metals & minerals

 

 162 

 

 199  (19)

 

 

 

 336 

 

 379  (11)

 

     Forest products

 

 50 

 

 56  (11)

 

 

 

 106 

 

 112  (5)

 

     Energy & specialized markets

 

 115 

 

 156  (26)

 

 

 

 277 

 

 303  (9)

 

   Industrial

 

 468 

 

 568  (18)

 

 

 

 1,014 

 

 1,099  (8)

 

     Automotive

 

 79 

 

 218  (64)

 

 

 

 287 

 

 428  (33)

 

     Intermodal [a]

 

 724 

 

 823  (12)

 

 

 

 1,433 

 

 1,654  (13)

 

   Premium

 

 803 

 

 1,041  (23)

 

 

 

 1,720 

 

 2,082  (17)

 

Total

 

 1,718 

 

 2,137  (20)

 %

 

 

 3,658 

 

 4,224  (13)

%

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 3,861 

$

 3,993  (3)

 %

 

$

 3,901 

$

 3,959  (1)

%

     Fertilizer

 

 3,181 

 

 3,182 

 -

 

 

 

 3,456 

 

 3,419  1 

 

     Food & refrigerated

 

 4,986 

 

 5,211  (4)

 

 

 

 5,142 

 

 5,215  (1)

 

     Coal & renewables

 

 1,979 

 

 2,147  (8)

 

 

 

 2,001 

 

 2,155  (7)

 

   Bulk

 

 3,099 

 

 3,179  (3)

 

 

 

 3,161 

 

 3,163 

 -

 

     Industrial chemicals & plastics

 

 3,086 

 

 3,081 

 -

 

 

 

 3,148 

 

 3,064  3 

 

     Metals & minerals

 

 2,276 

 

 2,806  (19)

 

 

 

 2,494 

 

 2,883  (13)

 

     Forest products

 

 5,256 

 

 5,324  (1)

 

 

 

 5,361 

 

 5,236  2 

 

     Energy & specialized markets

 

 3,739 

 

 3,807  (2)

 

 

 

 3,813 

 

 3,835  (1)

 

   Industrial

 

 3,201 

 

 3,408  (6)

 

 

 

 3,345 

 

 3,436  (3)

 

     Automotive

 

 2,388 

 

 2,546  (6)

 

 

 

 2,487 

 

 2,510  (1)

 

     Intermodal [a]

 

 1,241 

 

 1,295  (4)

 

 

 

 1,274 

 

 1,268 

 -

 

   Premium

 

 1,354 

 

 1,557  (13)

 

 

 

 1,476 

 

 1,523  (3)

 

Average 

$

 2,312 

$

 2,450  (6)

 %

 

$

 2,420 

$

 2,425 

 -

%



[a]

For intermodal shipments each container or trailer equals one carload.

2

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)







 

 

 

 

 

 

 

 

 

 

Jun. 30,

Dec. 31,

Millions, Except Percentages

2020  2019 

Assets

 

 

 

 

     Cash and cash equivalents

$

 2,706 

$

 831 

     Short-term investments

 

 60 

 

 60 

     Other current assets

 

 2,317 

 

 2,568 

     Investments

 

 2,042 

 

 2,050 

     Net properties

 

 54,270 

 

 53,916 

     Operating lease assets

 

 1,700 

 

 1,812 

     Other assets

 

 460 

 

 436 

Total assets

$

 63,555 

$

 61,673 

 

 

 

 

 

Liabilities and Common Shareholders' Equity

 

 

 

 

     Debt due within one year

$

 1,990 

$

 1,257 

     Other current liabilities

 

 3,289 

 

 3,094 

     Debt due after one year

 

 26,439 

 

 23,943 

     Operating lease liabilities

 

 1,320 

 

 1,471 

     Deferred income taxes

 

 12,171 

 

 11,992 

     Other long-term liabilities

 

 1,894 

 

 1,788 

Total liabilities

 

 47,103 

 

 43,545 

Total common shareholders' equity

 

 16,452 

 

 18,128 

Total liabilities and common shareholders' equity

$

 63,555 

$

 61,673 







3

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)







 

 

 

 

 

 

 

 

 

Millions,

Year-to-Date

For the Periods Ended June 30,

 2020  2019 

Operating Activities

 

 

 

 

     Net income

$

 2,606 

$

 2,961 

     Depreciation

 

 1,098 

 

 1,100 

     Deferred income taxes

 

 171 

 

 209 

     Other - net

 

 517 

 

 (370)

Cash provided by operating activities

 

 4,392 

 

 3,900 

Investing Activities

 

 

 

 

     Capital investments

 

 (1,599)

 

 (1,560)

     Maturities of short-term investments

 

 75 

 

 105 

     Purchases of short-term investments

 

 (75)

 

 (100)

     Other - net

 

 182 

 

 (55)

Cash used in investing activities

 

 (1,417)

 

 (1,610)

Financing Activities

 

 

 

 

     Debt issued

 

 4,004 

 

 2,992 

     Share repurchase programs

 

 (2,556)

 

 (3,629)

     Dividends paid

 

 (1,319)

 

 (1,248)

     Debt repaid

 

 (770)

 

 (604)

     Accelerated share repurchase programs pending final settlement

 

 (400)

 

 (500)

     Net issuance of commercial paper

 

 (1)

 

 471 

     Other - net

 

 (65)

 

 (29)

Cash used in financing activities

 

 (1,107)

 

 (2,547)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

 1,868 

 

 (257)

Cash, cash equivalents, and restricted cash at beginning of year

 

 856 

 

 1,328 

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

 2,724 

$

 1,071 

Free Cash Flow*

 

 

 

 

     Cash provided by operating activities

$

 4,392 

$

 3,900 

     Cash used in investing activities

 

 (1,417)

 

 (1,610)

     Dividends paid

 

 (1,319)

 

 (1,248)

Free cash flow

$

 1,656 

$

 1,042 



*Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing.



4

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2020 

 

 2019 

%

 

 

 2020 

 

 2019 

%

 

Operating/Performance Statistics 

 

 

 

 

 

 

 

 

 

 

 

     Freight car velocity (daily miles per car) [a]

 225 

 

 202  11 

%

 

 216 

 

 198  9 

%

     Average train speed (miles per hour) [a] *

 26.9 

 

 24.5  10 

 

 

 26.0 

 

 24.6  6 

 

     Average terminal dwell time (hours) [a] *

 21.6 

 

 25.7  (16)

 

 

 22.8 

 

 26.2  (13)

 

     Locomotive productivity (GTMs per horsepower day)

 136 

 

 121  12 

 

 

 133 

 

 116  15 

 

     Gross ton-miles (GTMs) (millions)

 170,626 

 

 220,009  (22)

 

 

 371,923 

 

 430,328  (14)

 

     Train length (feet)

 8,664 

 

 7,652  13 

 

 

 8,517 

 

 7,472  14 

 

     Intermodal car trip plan compliance (%)

 82 

 

 69  13 

pts

 

 83 

 

 68  15 

pts

     Manifest/Automotive car trip plan compliance (%)

 76 

 

 59  17 

pts

 

 69 

 

 61  8 

pts

     Workforce productivity (car miles per employee)

 868 

 

 866 

 -

 

 

 882 

 

 839  5 

 

     Total employees (average)

 30,059 

 

 38,657  (22)

 

 

 31,965 

 

 39,355  (19)

 

 

 

 

 

 

 

 

 

 

 

 

 

Locomotive Fuel Statistics

 

 

 

 

 

 

 

 

 

 

 

     Average fuel price per gallon consumed

$       1.26 

 

$       2.21 

 (43)

%

 

$       1.59 

 

$       2.14 

 (26)

%

     Fuel consumed in gallons (millions)

 189 

 

 245  (23)

 

 

 414 

 

 493  (16)

 

     Fuel consumption rate**

 1.107 

 

 1.112 

 -

 

 

 1.112 

 

 1.146  (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Ton-Miles (Millions)

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 16,242 

 

 17,244  (6)

%

 

 32,353 

 

 33,421  (3)

%

     Fertilizer

 3,116 

 

 3,099  1 

 

 

 6,160 

 

 5,985  3 

 

     Food & refrigerated

 3,752 

 

 4,851  (23)

 

 

 8,258 

 

 9,358  (12)

 

     Coal & renewables

 18,188 

 

 24,855  (27)

 

 

 38,193 

 

 51,184  (25)

 

   Bulk

 41,298 

 

 50,049  (17)

 

 

 84,964 

 

 99,948  (15)

 

     Industrial chemicals & plastics

 6,286 

 

 7,215  (13)

 

 

 13,460 

 

 14,027  (4)

 

     Metals & minerals

 6,402 

 

 10,260  (38)

 

 

 14,935 

 

 20,179  (26)

 

     Forest products

 5,398 

 

 6,083  (11)

 

 

 11,439 

 

 11,927  (4)

 

     Energy & specialized markets

 7,276 

 

 11,147  (35)

 

 

 19,322 

 

 21,792  (11)

 

   Industrial

 25,362 

 

 34,705  (27)

 

 

 59,156 

 

 67,925  (13)

 

     Automotive

 1,740 

 

 4,672  (63)

 

 

 6,229 

 

 9,197  (32)

 

     Intermodal

 17,514 

 

 19,318  (9)

 

 

 35,248 

 

 38,324  (8)

 

   Premium

 19,254 

 

 23,990  (20)

 

 

 41,477 

 

 47,521  (13)

 

Total

 85,914 

 

 108,744  (21)

%

 

 185,597 

 

 215,394  (14)

%

 

 

 

 

 

 

 

 

 

 

 

 



[a]Prior years have been realigned to conform to the current year presentation.



* Surface Transportation Board reported performance measures.    



**Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. 



5

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)





 

 

 

 

 

 



 

 

 

 

 

 



2020

Millions, Except Per Share Amounts and Percentages,

1st Qtr 

2nd Qtr 

Year-to-Date

Operating Revenues

 

 

 

 

 

 

     Freight revenues

$

 4,880 

$

 3,972 

$

 8,852 

     Other revenues

 

 349 

 

 272 

 

 621 

Total operating revenues

 

 5,229 

 

 4,244 

 

 9,473 

Operating Expenses

 

 

 

 

 

 

     Compensation and benefits

 

 1,059 

 

 905 

 

 1,964 

     Depreciation

 

 547 

 

 551 

 

 1,098 

     Purchased services and materials

 

 521 

 

 441 

 

 962 

     Fuel

 

 434 

 

 247 

 

 681 

     Equipment and other rents

 

 227 

 

 211 

 

 438 

     Other

 

 298 

 

 235 

 

 533 

Total operating expenses

 

 3,086 

 

 2,590 

 

 5,676 

Operating Income

 

 2,143 

 

 1,654 

 

 3,797 

     Other income

 

 53 

 

 131 

 

 184 

     Interest expense

 

 (278)

 

 (289)

 

 (567)

Income before income taxes

 

 1,918 

 

 1,496 

 

 3,414 

Income taxes

 

 (444)

 

 (364)

 

 (808)

Net Income

$

 1,474 

$

 1,132 

$

 2,606 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

     Earnings per share - basic

$

 2.15 

$

 1.67 

$

 3.83 

     Earnings per share - diluted

$

 2.15 

$

 1.67 

$

 3.82 

     Weighted average number of shares - basic

 

 684.3 

 

 677.7 

 

 681.0 

     Weighted average number of shares - diluted

 

 686.2 

 

 679.2 

 

 682.7 

     Dividends declared per share

$

 0.97 

$

 0.97 

$

 1.94 

 

 

 

 

 

 

 

Operating Ratio

 

 59.0% 

 

 61.0% 

 

 59.9% 

Effective Tax Rate

 

 23.1% 

 

 24.3% 

 

 23.7% 





6

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 



 

 

 

 

 

 



2020



1st Qtr 

2nd Qtr 

Year-to-Date

Freight Revenues (Millions)

 

 

 

 

 

 

     Grain & grain products

$

 689 

$

 644 

$

 1,333 

     Fertilizer

 

 174 

 

 168 

 

 342 

     Food & refrigerated

 

 250 

 

 205 

 

 455 

     Coal & renewables

 

 421 

 

 369 

 

 790 

   Bulk

 

 1,534 

 

 1,386 

 

 2,920 

     Industrial chemicals & plastics

 

 495 

 

 435 

 

 930 

     Metals & minerals

 

 469 

 

 368 

 

 837 

     Forest products

 

 303 

 

 266 

 

 569 

     Energy & specialized markets

 

 627 

 

 431 

 

 1,058 

   Industrial

 

 1,894 

 

 1,500 

 

 3,394 

     Automotive

 

 524 

 

 189 

 

 713 

     Intermodal

 

 928 

 

 897 

 

 1,825 

   Premium

 

 1,452 

 

 1,086 

 

 2,538 

Total

$

 4,880 

$

 3,972 

$

 8,852 

Revenue Carloads (Thousands)

 

 

 

 

 

 

     Grain & grain products

 

 175 

 

 167 

 

 342 

     Fertilizer

 

 46 

 

 53 

 

 99 

     Food & refrigerated

 

 48 

 

 41 

 

 89 

     Coal & renewables

 

 208 

 

 186 

 

 394 

   Bulk

 

 477 

 

 447 

 

 924 

     Industrial chemicals & plastics

 

 154 

 

 141 

 

 295 

     Metals & minerals

 

 174 

 

 162 

 

 336 

     Forest products

 

 56 

 

 50 

 

 106 

     Energy & specialized markets

 

 162 

 

 115 

 

 277 

   Industrial

 

 546 

 

 468 

 

 1,014 

     Automotive

 

 208 

 

 79 

 

 287 

     Intermodal [a]

 

 709 

 

 724 

 

 1,433 

   Premium

 

 917 

 

 803 

 

 1,720 

Total

 

 1,940 

 

 1,718 

 

 3,658 

Average Revenue per Car

 

 

 

 

 

 

     Grain & grain products

$

 3,940 

$

 3,861 

$

 3,901 

     Fertilizer

 

 3,768 

 

 3,181 

 

 3,456 

     Food & refrigerated

 

 5,277 

 

 4,986 

 

 5,142 

     Coal & renewables

 

 2,022 

 

 1,979 

 

 2,001 

   Bulk

 

 3,219 

 

 3,099 

 

 3,161 

     Industrial chemicals & plastics

 

 3,205 

 

 3,086 

 

 3,148 

     Metals & minerals

 

 2,697 

 

 2,276 

 

 2,494 

     Forest products

 

 5,457 

 

 5,256 

 

 5,361 

     Energy & specialized markets

 

 3,866 

 

 3,739 

 

 3,813 

   Industrial

 

 3,469 

 

 3,201 

 

 3,345 

     Automotive

 

 2,525 

 

 2,388 

 

 2,487 

     Intermodal [a]

 

 1,307 

 

 1,241 

 

 1,274 

   Premium

 

 1,583 

 

 1,354 

 

 1,476 

Average 

$

 2,516 

$

 2,312 

$

 2,420 



[a]For intermodal shipments each container or trailer equals one carload.

7

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP





Adjusted Debt / Adjusted EBITDA*





 

 

 

 



 

 

 

 

Millions, Except Ratios

Jun. 30,

Dec. 31,

for the Trailing Twelve Months Ended [a]

 2020  2019 

Net income

$

 5,564 

$

 5,919 

Add:

 

 

 

 

Income tax expense

 

 1,749 

 

 1,828 

Depreciation

 

 2,214 

 

 2,216 

Interest expense

 

 1,111 

 

 1,050 

EBITDA

$

 10,638 

$

 11,013 

Adjustments:

 

 

 

Other income

 

 (293)

 

 (243)

Interest on operating lease liabilities**

 

 61 

 

 68 

Adjusted EBITDA

$

 10,406 

$

 10,838 

Debt

$

 28,429 

$

 25,200 

Operating lease liabilities

 

 1,639 

 

 1,833 

Unfunded pension and OPEB,  net of taxes of $115 and $124

 

 370 

 

 400 

Adjusted debt

$

 30,438 

$

 27,433 

Adjusted debt / Adjusted EBITDA

 

 2.9 

 

 2.5 



[a]

The trailing twelve months income statement information ended June  30, 2020 is recalculated by taking the twelve months ended December 31, 2019, subtracting the six months ended June 30, 2019, and adding the six months ended June 30, 2020.







 

 

 

 



 

 

 

 

*Total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB obligation divided by net income plus income tax expense, depreciation, amortization, interest expense and adjustments for other income and interest on operating lease liabilities. Adjusted debt to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income and interest on operating lease liabilities) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income. The table above provides reconciliations from net income to adjusted debt to adjusted EBITDA. At both June 30, 2020 and December 31, 2019, the incremental borrowing rate on operating lease liabilities was 3.7%.



**Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases.

8