Union Pacific Corporation (NYSE: UNP) reported 2011 first quarter net income of $639 million, or $1.29 per diluted share, compared to $516 million, or $1.01 per diluted share, in the first quarter 2010 in a recent press release.
“We’ve started off strong in 2011 by achieving record results in the first quarter,” said Jim Young, Union Pacific chairman and chief executive officer. “We saw volume growth in all commodities and effectively leveraged that growth by running a safe and efficient network despite spiking fuel prices and winter weather challenges across most of the nation’s rail network. These efforts produced a best-ever first quarter operating ratio and record cash from operations.”
First Quarter Summary
First quarter business volumes, as measured by total revenue carloads, grew 5 percent versus 2010. All six Union Pacific business groups reported volume growth for the fourth consecutive quarter, with particularly strong growth in shipments of chemical and industrial products. Quarterly operating revenue increased 13 percent in the first quarter 2011 to $4.5 billion versus $4.0 billion in the first quarter 2010. In addition:
- Each of Union Pacific’s six business groups reported freight revenue growth in the first quarter. Strong volume growth, core pricing gains, and increased fuel cost recoveries contributed to the increase.
- Union Pacific’s operating ratio of 74.7 percent was a first-quarter best, 0.4 points better than the previous first-quarter record set in 2010. Volume growth, improved operating efficiency, and quarterly pricing gains all contributed to this record performance. The impact of higher fuel prices and the lag in fuel surcharge recoveries negatively impacted operating ratio and earnings by 2.4 points and $0.08 per share, respectively.
- Quarterly diesel fuel prices increased 33 percent from an average of $2.16 per gallon in the first quarter 2010 to an average of $2.88 per gallon in the first quarter 2011, our third highest quarterly fuel price on record.
- The Customer Satisfaction Index of 91 set a new all-time quarterly best record and was four points better than the first quarter 2010.
- Quarterly train speed, as reported to the Association of American Railroads, was 26.1 mph, flat versus first quarter 2010 velocity.
- The Company repurchased 2.6 million shares in the first quarter 2011 at an average share price of $94.10 and an aggregate cost of approximately $248 million. As of April 1, the Company had authorization to repurchase up to 40 million shares of stock.
Source: Union Pacific Corp