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): January 22, 2009
Union Pacific Corporation
(Exact name of registrant as specified in its charter)
| Utah | 1-6075 | 13-2626465 | ||
| (State or other jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer 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)) |
Item 2.02 Results of Operations and Financial Condition.
On January 22, 2009, Union Pacific Corporation (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2008. 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.
| (c) | Exhibits. |
| 99.1 | Press Release of Union Pacific Corporation, dated January 22, 2009, announcing the Company’s financial results for the quarter and year ended December 31, 2008. |
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: January 22, 2009
| UNION PACIFIC CORPORATION | ||
| By: | /s/ Robert M. Knight, Jr. | |
| Robert M. Knight, Jr. | ||
| Executive Vice President – Finance and Chief Financial Officer | ||
Exhibit 99.1
UNION PACIFIC REPORTS FOURTH QUARTER EARNINGS GROWTH DRIVEN BY
PRODUCTIVITY AND LOWER ENERGY COSTS
Economic Uncertainty Creates Challenges in 2009
FOR IMMEDIATE RELEASE
Fourth Quarter 2008 Highlights
| • | Diluted earnings per share improved 41 percent to $1.31. |
| • | Operating revenues totaled $4.3 billion, up two percent. |
| • | Operating income grew 32 percent to $1.14 billion. |
| • | Operating ratio was 73.4 percent, a 6 point improvement. |
| • | Net income increased 35 percent to $661 million. |
| • | Customer Satisfaction Index increased 7 points to 85. |
Full Year 2008 Highlights
| • | Diluted earnings per share improved 31 percent to $4.54. |
| • | Operating revenues totaled $18.0 billion, up 10 percent. |
| • | Operating income grew 21 percent to $4.1 billion. |
| • | Operating ratio was 77.3 percent, a 2 point improvement. |
| • | Net income increased 26 percent to $2.3 billion. |
| • | Return on invested capital grew 1.5 points to 10.2 percent. |
| • | Customer Satisfaction Index increased four points to 83. |
OMAHA, Neb., January 22, 2009 – Union Pacific Corporation (NYSE: UNP) today reported 2008 fourth quarter net income of $661 million, or $1.31 per diluted share, a 35 percent increase compared to $491 million, or $0.93 per diluted share for the fourth quarter of 2007. The company posted quarterly operating revenues of $4.3 billion in 2008 versus $4.2 billion in the fourth quarter 2007.
“Union Pacific posted solid earnings for the quarter and the year, despite numerous challenges,” said Jim Young, Union Pacific chairman and chief executive officer. “We increased profitability by operating a safe and efficient railroad that delivered excellent service and value for our customers. In the fourth quarter, our operating ratio improved significantly as we benefited from lower fuel costs, better pricing, and productivity gains, all of which helped offset the impact of declining volumes in this difficult economic environment.”
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Fourth Quarter Summary
Although business volumes declined in the quarter, Union Pacific reported operating income of $1.1 billion in the fourth quarter 2008, a 32 percent year-over-year improvement driven by lower fuel costs, continued pricing gains and strong productivity. The company’s freight revenues grew two percent in the quarter to $4.1 billion. In addition:
| • | The company’s fourth quarter 2008 Customer Satisfaction Index improved seven points to 85, an all-time company high. |
| • | Fourth quarter 2008 average quarterly fuel price declined six percent to $2.46 per gallon, compared to $2.62 per gallon in the fourth quarter 2007. |
| • | Business volumes, as measured by total revenue carloads, were 12 percent lower in 2008 than in the fourth quarter 2007. |
| • | Union Pacific’s operating ratio improved six points to 73.4 percent in the fourth quarter 2008. |
Summary of Fourth Quarter Freight Revenues
| • | Energy was up 20 percent. |
| • | Agricultural was up 10 percent. |
| • | Chemicals were down 1 percent. |
| • | Industrial Products were down 3 percent. |
| • | Intermodal was down 7 percent. |
| • | Automotive was down 17 percent. |
2008 Full Year Summary
For the full year 2008, Union Pacific reported net income of $2.3 billion, or $4.54 per diluted share, compared to $1.9 billion, or $3.46 per diluted share in 2007. The company posted operating revenues of $18.0 billion in 2008 compared to $16.3 billion in 2007. Operating income increased to $4.1 billion, a 21 percent improvement over 2007.
| • | Freight revenues grew 11 percent to $17.1 billion. |
| • | Average fuel price per gallon increased 39 percent to $3.15 from $2.27. |
| • | Business volumes were down five percent. |
Outlook
“Although we expect 2009 will be a difficult year for our Company, our customers and our employees, we are challenging ourselves to deliver an even higher level of performance,” Young said. “In this tough economic environment, we remain dedicated to providing excellent service to our customers, making strategic investments for long-term growth and producing strong financial returns.”
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About Union Pacific
Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.
Supplemental financial information is attached.
Additional information is available at our Web site: www.up.com.
Contact for investors is Jennifer Hamann at (402) 544-4227.
Contact for media is Donna Kush at (402) 544-3753.
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This press release and related materials contain statements about the Corporation’s future that are not statements of historical fact, including specifically expectations regarding the Corporation’s outlook regarding economic conditions, future operating performance, ability to make, and plans for, strategic investments, and financial returns. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: expectations as to continued or increasing demand for rail transportation services; expectations regarding operational improvements, including the effectiveness of network management initiatives that have been or will be implemented to improve operations, customer service, and shareholder returns; expectations as to increased returns, cost savings, revenue growth, and earnings; expectations regarding fuel price and our ability to mitigate fuel costs; the time by which certain objectives will be achieved, including expected improvements in operations and implementation of network management initiatives; estimates of costs relating to environmental remediation and restoration; proposed new products and services; expectations that claims, lawsuits, environmental costs, commitments, contingent liabilities, labor negotiations or agreements, or other matters will not have a material adverse effect on our consolidated financial position, results of operations, or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to the Corporation’s and its subsidiaries’ business, financial, and operational results, and future economic performance; and statements of 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 Corporation’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 Corporation’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 Corporation’s Annual Report on Form 10-K for 2007, which was filed with the SEC on February 28, 2008. The Corporation 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 Corporation 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 Corporation does update one or more forward-looking statements, no inference should be drawn that the Corporation will make additional updates with respect thereto or with respect to other forward-looking statements. References to our Web site are provided for convenience and, therefore, information on or available through the Web site is not, and should not be deemed to be, incorporated by reference herein.
UNION PACIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except per Share Amounts and Percentages)
| 4th Quarter |
Year-to-Date |
|||||||||||||||||||||
| For the Periods Ending December 31, |
2008 |
2007 |
% |
2008 |
2007 |
% |
||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||
| Operating Revenues * |
||||||||||||||||||||||
| Freight Revenues |
$ | 4,080 | $ | 3,988 | 2 | $ | 17,118 | $ | 15,486 | 11 | ||||||||||||
| Other Revenues |
206 | 209 | (1 | ) | 852 | 797 | 7 | |||||||||||||||
| Total Operating Revenues |
4,286 | 4,197 | 2 | 17,970 | 16,283 | 10 | ||||||||||||||||
| Operating Expenses * |
||||||||||||||||||||||
| Compensation and Benefits |
1,101 | 1,121 | (2 | ) | 4,457 | 4,526 | (2 | ) | ||||||||||||||
| Fuel |
732 | 903 | (19 | ) | 3,983 | 3,104 | 28 | |||||||||||||||
| Purchased Services and Materials |
458 | 456 | — | 1,902 | 1,856 | 2 | ||||||||||||||||
| Depreciation |
353 | 337 | 5 | 1,387 | 1,321 | 5 | ||||||||||||||||
| Equipment and Other Rents |
320 | 333 | (4 | ) | 1,326 | 1,368 | (3 | ) | ||||||||||||||
| Other |
181 | 183 | (1 | ) | 840 | 733 | 15 | |||||||||||||||
| Total Operating Expenses |
3,145 | 3,333 | (6 | ) | 13,895 | 12,908 | 8 | |||||||||||||||
| Operating Income |
1,141 | 864 | 32 | 4,075 | 3,375 | 21 | ||||||||||||||||
| Other Income |
25 | 40 | (38 | ) | 92 | 116 | (21 | ) | ||||||||||||||
| Interest Expense |
(127 | ) | (125 | ) | 2 | (511 | ) | (482 | ) | 6 | ||||||||||||
| Income Before Income Taxes |
1,039 | 779 | 33 | 3,656 | 3,009 | 22 | ||||||||||||||||
| Income Tax Expense |
(378 | ) | (288 | ) | 31 | (1,318 | ) | (1,154 | ) | 14 | ||||||||||||
| Net Income |
$ | 661 | $ | 491 | 35 | $ | 2,338 | $ | 1,855 | 26 | ||||||||||||
| Share and per Share |
||||||||||||||||||||||
| Earnings per Share – Basic |
$ | 1.31 | $ | 0.94 | 39 | $ | 4.58 | $ | 3.49 | 31 | ||||||||||||
| Earnings per Share – Diluted |
$ | 1.31 | $ | 0.93 | 41 | $ | 4.54 | $ | 3.46 | 31 | ||||||||||||
| Weighted Average Number of Shares – Basic |
503.2 | 523.5 | (4 | ) | 510.6 | 531.9 | (4 | ) | ||||||||||||||
| Weighted Average Number of Shares – Diluted |
506.5 | 528.6 | (4 | ) | 515.0 | 536.8 | (4 | ) | ||||||||||||||
| Dividends Declared per Share |
$ | 0.27 | $ | 0.22 | 23 | $ | 0.98 | $ | 0.745 | 32 | ||||||||||||
| Operating Ratio |
73.4 | % | 79.4 | % | (6.0 | )pts | 77.3 | % | 79.3 | % | (2.0 | )pts | ||||||||||
| Effective Tax Rate |
36.4 | % | 37.0 | % | (0.6 | )pts | 36.1 | % | 38.4 | % | (2.3 | )pts | ||||||||||
* Certain prior year amounts have been reclassified to conform to the current period financial statement presentation. The reclassifications include reporting freight revenues instead of commodity revenues. In addition, we modified our operating expense categories to report fuel used in railroad operations as a stand-alone category, to combine purchased services and materials into one line, and to reclassify certain other expenses among operating expense categories. These reclassifications had no impact on previously reported operating revenues, operating expenses, operating income or net income. See Union Pacific Web site under Investor Relations for reclassified 2007, 2006 and 2005 quarterly numbers.
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UNION PACIFIC CORPORATION
FREIGHT REVENUES STATISTICS
| 4th Quarter |
Year-to-Date |
|||||||||||||||||
| For the Periods Ending December 31, |
2008 |
2007 |
% |
2008 |
2007 |
% |
||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
| Freight Revenues (Millions): |
||||||||||||||||||
| Agricultural |
$ | 792 | $ | 719 | 10 | $ | 3,174 | $ | 2,605 | 22 | ||||||||
| Automotive |
305 | 369 | (17 | ) | 1,344 | 1,458 | (8 | ) | ||||||||||
| Chemicals |
578 | 583 | (1 | ) | 2,494 | 2,287 | 9 | |||||||||||
| Energy |
983 | 818 | 20 | 3,810 | 3,134 | 22 | ||||||||||||
| Industrial Products |
717 | 742 | (3 | ) | 3,273 | 3,077 | 6 | |||||||||||
| Intermodal |
705 | 757 | (7 | ) | 3,023 | 2,925 | 3 | |||||||||||
| Total |
$ | 4,080 | $ | 3,988 | 2 | $ | 17,118 | $ | 15,486 | 11 | ||||||||
| Revenue Carloads (Thousands): |
||||||||||||||||||
| Agricultural |
228 | 239 | (5 | ) | 947 | 902 | 5 | |||||||||||
| Automotive |
150 | 203 | (26 | ) | 667 | 826 | (19 | ) | ||||||||||
| Chemicals |
195 | 227 | (14 | ) | 885 | 928 | (5 | ) | ||||||||||
| Energy |
590 | 597 | (1 | ) | 2,348 | 2,299 | 2 | |||||||||||
| Industrial Products |
270 | 319 | (15 | ) | 1,249 | 1,325 | (6 | ) | ||||||||||
| Intermodal |
724 | 859 | (16 | ) | 3,165 | 3,453 | (8 | ) | ||||||||||
| Total |
2,157 | 2,444 | (12 | ) | 9,261 | 9,733 | (5 | ) | ||||||||||
| Average Revenue per Car: |
||||||||||||||||||
| Agricultural |
$ | 3,472 | $ | 3,006 | 16 | $ | 3,352 | $ | 2,888 | 16 | ||||||||
| Automotive |
2,040 | 1,823 | 12 | 2,017 | 1,766 | 14 | ||||||||||||
| Chemicals |
2,957 | 2,564 | 15 | 2,818 | 2,464 | 14 | ||||||||||||
| Energy |
1,664 | 1,368 | 22 | 1,622 | 1,363 | 19 | ||||||||||||
| Industrial Products |
2,662 | 2,324 | 14 | 2,620 | 2,322 | 13 | ||||||||||||
| Intermodal |
974 | 883 | 10 | 955 | 847 | 13 | ||||||||||||
| Average |
$ | 1,891 | $ | 1,632 | 16 | $ | 1,848 | $ | 1,591 | 16 | ||||||||
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UNION PACIFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of Dollars, Except Percentages)
| Dec. 31, 2008 |
Dec. 31, 2007 |
|||||||
| (unaudited) | ||||||||
| Assets |
||||||||
| Cash and Cash Equivalents |
$ | 1,249 | $ | 878 | ||||
| Other Current Assets |
1,564 | 1,716 | ||||||
| Investments |
974 | 923 | ||||||
| Net Properties |
35,701 | 34,158 | ||||||
| Other Assets |
234 | 358 | ||||||
| Total Assets |
$ | 39,722 | $ | 38,033 | ||||
| Liabilities and Shareholders’ Equity |
||||||||
| Debt Due within One Year |
$ | 320 | $ | 139 | ||||
| Other Current Liabilities |
2,560 | 2,902 | ||||||
| Debt Due after One Year |
8,607 | 7,543 | ||||||
| Deferred Income Taxes |
10,282 | 10,050 | ||||||
| Other Long-Term Liabilities |
2,506 | 1,814 | ||||||
| Total Liabilities |
24,275 | 22,448 | ||||||
| Total Shareholders’ Equity |
15,447 | 15,585 | ||||||
| Total Liabilities and Shareholders’ Equity |
$ | 39,722 | $ | 38,033 | ||||
| Debt to Capital |
36.6 | % | 33.0 | % | ||||
| Adjusted Debt to Capital * |
47.4 | % | 44.1 | % | ||||
| Return on Invested Capital * |
10.2 | % | 8.7 | % | ||||
* Adjusted Debt to Capital and Return on Invested Capital are non-GAAP measures; however, we believe that they are important in evaluating our financial performance. See Union Pacific Web site a reconciliation to GAAP.
(3)
UNION PACIFIC CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(Millions of Dollars)
| Year-to-Date |
||||||||
| For the Periods Ending December 31, |
2008 |
2007 |
||||||
| (unaudited) | ||||||||
| Operating Activities |
||||||||
| Net Income |
$ | 2,338 | $ | 1,855 | ||||
| Depreciation |
1,387 | 1,321 | ||||||
| Deferred Income Taxes |
547 | 332 | ||||||
| Other – Net |
(202 | ) | (231 | ) | ||||
| Cash Provided by Operating Activities |
4,070 | 3,277 | ||||||
| Investing Activities |
||||||||
| Capital Investments |
(2,780 | ) | (2,496 | ) | ||||
| Other – Net |
16 | 70 | ||||||
| Cash Used in Investing Activities |
(2,764 | ) | (2,426 | ) | ||||
| Financing Activities |
||||||||
| Debt Issued |
2,257 | 1,581 | ||||||
| Common Shares Repurchased |
(1,609 | ) | (1,375 | ) | ||||
| Debt Repaid |
(1,208 | ) | (792 | ) | ||||
| Dividends Paid |
(481 | ) | (364 | ) | ||||
| Other – Net |
106 | 150 | ||||||
| Cash Used In Financing Activities |
(935 | ) | (800 | ) | ||||
| Net Change in Cash and Cash Equivalents |
371 | 51 | ||||||
| Cash and Cash Equivalents |
||||||||
| Beginning of year |
878 | 827 | ||||||
| End of period |
$ | 1,249 | $ | 878 | ||||
| Free Cash Flow * |
||||||||
| Cash Provided by Operating Activities |
$ | 4,070 | $ | 3,277 | ||||
| Cash Used in Investing Activities |
(2,764 | ) | (2,426 | ) | ||||
| Dividends Paid |
(481 | ) | (364 | ) | ||||
| Free Cash Flow |
$ | 825 | $ | 487 | ||||
* Free cash flow is a non-GAAP measure; however, we believe that it is important in evaluating our financial performance and measures our ability to generate cash without incurring additional financing.
(4)
UNION PACIFIC CORPORATION
OPERATING AND PERFORMANCE STATISTICS
| 4th Quarter |
Year-to-Date |
|||||||||||||||||
| For the Periods Ending December 31, |
2008 |
2007 |
% |
2008 |
2007 |
% |
||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
| Operating / Performance Statistics |
||||||||||||||||||
| Gross Ton-Miles (GTMs) (Millions) |
243,641 | 267,248 | (9 | ) | 1,020,370 | 1,052,319 | (3 | ) | ||||||||||
| Employees (Average) |
46,877 | 48,770 | (4 | ) | 48,242 | 50,089 | (4 | ) | ||||||||||
| GTMs (Millions) per Employee |
5.20 | 5.48 | (5 | ) | 21.15 | 21.01 | 1 | |||||||||||
| Customer Satisfaction Index |
85 | 78 | 7 | pts | 83 | 79 | 4 | pts | ||||||||||
| Fuel Statistics |
||||||||||||||||||
| Average Fuel Price per Gallon Consumed |
$ | 2.46 | $ | 2.62 | (6 | ) | $ | 3.15 | $ | 2.27 | 39 | |||||||
| Fuel Consumed in Gallons (Millions) |
289 | 333 | (13 | ) | 1,229 | 1,326 | (7 | ) | ||||||||||
| Fuel Consumption Rate * |
1.188 | 1.245 | (5 | ) | 1.204 | 1.261 | (4 | ) | ||||||||||
| AAR Reported Performance Measures |
||||||||||||||||||
| Average Train Speed (Miles per Hour) |
25.1 | 22.3 | 13 | 23.5 | 21.8 | 8 | ||||||||||||
| Average Terminal Dwell Time (Hours) |
25.3 | 25.4 | — | 24.9 | 25.1 | (1 | ) | |||||||||||
| Average Rail Car Inventory |
292,856 | 307,682 | (5 | ) | 300,692 | 309,912 | (3 | ) | ||||||||||
| Revenue Ton-Miles (Millions) |
||||||||||||||||||
| Agricultural |
21,560 | 21,735 | (1 | ) | 88,588 | 80,532 | 10 | |||||||||||
| Automotive |
3,169 | 4,217 | (25 | ) | 13,982 | 17,482 | (20 | ) | ||||||||||
| Chemicals |
12,641 | 13,964 | (9 | ) | 54,807 | 56,521 | (3 | ) | ||||||||||
| Energy |
65,393 | 65,613 | (0 | ) | 258,362 | 251,408 | 3 | |||||||||||
| Industrial Products |
15,421 | 17,711 | (13 | ) | 70,714 | 75,109 | (6 | ) | ||||||||||
| Intermodal |
17,014 | 20,232 | (16 | ) | 76,178 | 80,793 | (6 | ) | ||||||||||
| Total |
135,198 | 143,472 | (6 | ) | 562,631 | 561,845 | — | |||||||||||
* Fuel consumption rate is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands.
(5)
UNION PACIFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except per Share Amounts and Percentages)
| 2008 |
||||||||||||||||||||
| 1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year-to- Date |
||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Operating Revenues * |
||||||||||||||||||||
| Freight Revenues |
$ | 4,059 | $ | 4,349 | $ | 4,630 | $ | 4,080 | $ | 17,118 | ||||||||||
| Other Revenues |
211 | 219 | 216 | 206 | 852 | |||||||||||||||
| Total Operating Revenues |
4,270 | 4,568 | 4,846 | 4,286 | 17,970 | |||||||||||||||
| Operating Expenses * |
||||||||||||||||||||
| Compensation and Benefits |
1,132 | 1,101 | 1,123 | 1,101 | 4,457 | |||||||||||||||
| Fuel |
957 | 1,159 | 1,135 | 732 | 3,983 | |||||||||||||||
| Purchased Services and Materials |
469 | 494 | 481 | 458 | 1,902 | |||||||||||||||
| Depreciation |
340 | 346 | 348 | 353 | 1,387 | |||||||||||||||
| Equipment and Other Rents |
342 | 338 | 326 | 320 | 1,326 | |||||||||||||||
| Other |
242 | 199 | 218 | 181 | 840 | |||||||||||||||
| Total Operating Expenses |
3,482 | 3,637 | 3,631 | 3,145 | 13,895 | |||||||||||||||
| Operating Income |
788 | 931 | 1,215 | 1,141 | 4,075 | |||||||||||||||
| Other Income |
25 | 19 | 23 | 25 | 92 | |||||||||||||||
| Interest Expense |
(126 | ) | (128 | ) | (130 | ) | (127 | ) | (511 | ) | ||||||||||
| Income Before Income Taxes |
687 | 822 | 1,108 | 1,039 | 3,656 | |||||||||||||||
| Income Tax Expense |
(244 | ) | (291 | ) | (405 | ) | (378 | ) | (1,318 | ) | ||||||||||
| Net Income |
$ | 443 | $ | 531 | $ | 703 | $ | 661 | $ | 2,338 | ||||||||||
| Share and per Share |
||||||||||||||||||||
| Earnings per Share – Basic |
$ | 0.86 | $ | 1.03 | $ | 1.39 | $ | 1.31 | $ | 4.58 | ||||||||||
| Earnings per Share – Diluted |
$ | 0.85 | $ | 1.02 | $ | 1.38 | $ | 1.31 | $ | 4.54 | ||||||||||
| Weighted Average Number of Shares – Basic |
518.4 | 514.3 | 506.6 | 503.2 | 510.6 | |||||||||||||||
| Weighted Average Number of Shares – Diluted |
522.8 | 519.0 | 511.3 | 506.5 | 515.0 | |||||||||||||||
| Dividends Declared per Share |
$ | 0.22 | $ | 0.22 | $ | 0.27 | $ | 0.27 | $ | 0.98 | ||||||||||
| Operating Ratio |
81.5 | % | 79.6 | % | 74.9 | % | 73.4 | % | 77.3 | % | ||||||||||
| Effective Tax Rate |
35.5 | % | 35.4 | % | 36.6 | % | 36.4 | % | 36.1 | % | ||||||||||
* Certain prior year amounts have been reclassified to conform to the current period financial statement presentation. The reclassifications include reporting freight revenues instead of commodity revenues. In addition, we modified our operating expense categories to report fuel used in railroad operations as a stand-alone category, to combine purchased services and materials into one line, and to reclassify certain other expenses among operating expense categories. These reclassifications had no impact on previously reported operating revenues, operating expenses, operating income or net income. See Union Pacific Web site under Investor Relations for reclassified 2007, 2006 and 2005 quarterly numbers.
(6)
UNION PACIFIC CORPORATION
FREIGHT REVENUES STATISTICS
| 2008 | |||||||||||||||
| 1st Qtr |
2nd Qtr |
3rd Qtr |
4th Qtr |
Year-to- Date | |||||||||||
| (unaudited) | |||||||||||||||
| Freight Revenues (Millions): |
|||||||||||||||
| Agricultural |
$ | 756 | $ | 778 | $ | 848 | $ | 792 | $ | 3,174 | |||||
| Automotive |
363 | 352 | 324 | 305 | 1,344 | ||||||||||
| Chemicals |
603 | 654 | 659 | 578 | 2,494 | ||||||||||
| Energy |
857 | 919 | 1,051 | 983 | 3,810 | ||||||||||
| Industrial Products |
773 | 877 | 906 | 717 | 3,273 | ||||||||||
| Intermodal |
707 | 769 | 842 | 705 | 3,023 | ||||||||||
| Total |
$ | 4,059 | $ | 4,349 | $ | 4,630 | $ | 4,080 | $ | 17,118 | |||||
| Revenue Carloads (Thousands): |
|||||||||||||||
| Agricultural |
240 | 236 | 243 | 228 | 947 | ||||||||||
| Automotive |
188 | 176 | 153 | 150 | 667 | ||||||||||
| Chemicals |
225 | 241 | 224 | 195 | 885 | ||||||||||
| Energy |
582 | 561 | 615 | 590 | 2,348 | ||||||||||
| Industrial Products |
304 | 346 | 329 | 270 | 1,249 | ||||||||||
| Intermodal |
796 | 811 | 834 | 724 | 3,165 | ||||||||||
| Total |
2,335 | 2,371 | 2,398 | 2,157 | 9,261 | ||||||||||
| Average Revenue per Car: |
|||||||||||||||
| Agricultural |
$ | 3,151 | $ | 3,301 | $ | 3,486 | $ | 3,472 | $ | 3,352 | |||||
| Automotive |
1,930 | 2,005 | 2,114 | 2,040 | 2,017 | ||||||||||
| Chemicals |
2,676 | 2,714 | 2,951 | 2,957 | 2,818 | ||||||||||
| Energy |
1,473 | 1,639 | 1,709 | 1,664 | 1,622 | ||||||||||
| Industrial Products |
2,540 | 2,537 | 2,747 | 2,662 | 2,620 | ||||||||||
| Intermodal |
889 | 947 | 1,010 | 974 | 955 | ||||||||||
| Average |
$ | 1,738 | $ | 1,835 | $ | 1,931 | $ | 1,891 | $ | 1,848 | |||||
(7)