Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Union Pacific    UNP

UNION PACIFIC

(UNP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Union Pacific Cuts Costs, Raises Profit

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/18/2019 | 12:24pm EDT

By Paul Ziobro

Union Pacific Corp.'s second-quarter profit rose even as it shipped less cargo, as the railroad operator got a boost from cost cuts tied to its new operating plan, including fewer jobs and lower fuel expenses.

The railroad will continue to slim down as it plans further job reductions -- as much as 10% for the full year -- and other productivity measures amid a weak freight shipping environment, in which volume is expected to fall 2% in the second half of 2019.

Union Pacific is in the midst of a significant overhaul where it is running fewer, longer trains, sorting railcars less frequently and reworking operations across its network. Other freight railroads, including Norfolk Southern Corp. and Kansas City Southern, are on similar paths, mirroring the changes that CSX Corp. made on its network in recent years.

The cost reductions are helping as the railroads confront less business. With trade uncertainty and a weak industrial economy, freight traffic remains depressed on the railroads, damping revenue.

Union Pacific's operating revenue declined 1% to $5.6 billion in the second quarter as shipping volume fell 4%. But operating expenses fell 7% as the company reduced its workforce by 8%, or about 3,500 people, from a year earlier.

Second-quarter business volumes, as measured by total revenue carloads, declined 4%. Industrial volumes increased, shipments of agricultural products were flat, and energy and agricultural products declined.

Profit rose to $1.57 billion, or $2.22 a share, from $1.51 billion, or $1.98 a share, a year earlier.

The changes resulted in an operating ratio -- a closely watched metric that measures the percentage of revenue consumed by expenses, where a lower figure represents an improvement -- of 59.6%. The performance came even as Union Pacific dealt with severe weather, including flooding that kept part of its network down.

While such changes, including idling hundreds of locomotives and deep job cuts, can be disruptive to railroads and their customers, Union Pacific says it continues to make changes carefully and by communicating closely with shippers.

"We're trying to do this in a systematic manner instead of blowing it up, " Union Pacific Chief Operating Officer Jim Vena said. "We're getting out in front of it. We tell the customer what we're doing."

--Aisha Al-Muslim contributed to this article.

Stocks mentioned in the article
ChangeLast1st jan.
CSX CORPORATION 1.06% 65.09 Delayed Quote.3.67%
KANSAS CITY SOUTHERN 2.56% 120.07 Delayed Quote.22.65%
NORFOLK SOUTHERN CORPORATION 1.85% 173 Delayed Quote.13.58%
UNION PACIFIC 2.34% 166.25 Delayed Quote.20.27%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on UNION PACIFIC
08/15North American Rail Traffic Fell 2.7% in Week Ended Aug. 10
DJ
08/13UNION PACIFIC : Current Carloadings - Week 32
PU
08/07North American Rail Traffic Fell 4.3% in Week Ended Aug. 3
DJ
08/06UNION PACIFIC : Current Carloadings - Week 31
PU
08/05UNION PACIFIC : UPC 8-K Filed 08/05/2019
PU
08/05UNION PACIFIC CORP : Other Events, Financial Statements and Exhibits (form 8-K)
AQ
08/02UNION PACIFIC - GEORGE H.W. BUSH FUN : The President's Final Journey' to air on ..
AQ
08/01Expected Oil Supply Surge Sustains Bear Market -- Update
DJ
08/01GEORGE H.W. BUSH FUNERAL TRAIN STORY : The President's Final Journey' to air on ..
PU
07/31North American Rail Traffic Fell 3.1% in Week Ended July 27
DJ
More news
Financials (USD)
Sales 2019 22 652 M
EBIT 2019 9 058 M
Net income 2019 6 319 M
Debt 2019 24 834 M
Yield 2019 2,16%
P/E ratio 2019 18,5x
P/E ratio 2020 16,3x
EV / Sales2019 6,27x
EV / Sales2020 6,11x
Capitalization 117 B
Chart UNION PACIFIC
Duration : Period :
Union Pacific Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends UNION PACIFIC
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 187,00  $
Last Close Price 166,25  $
Spread / Highest target 23,9%
Spread / Average Target 12,5%
Spread / Lowest Target -15,8%
EPS Revisions
Managers
NameTitle
Lance M. Fritz Chairman, President & Chief Executive Officer
Jim Vena Chief Operating Officer
Robert M. Knight Chief Financial Officer & Executive Vice President
Erroll Brown Davis Independent Director
Andrew Hill Card Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
UNION PACIFIC20.27%114 451
CANADIAN NATIONAL RAILWAY COMPANY19.18%64 934
CSX CORPORATION3.67%51 411
NORFOLK SOUTHERN CORPORATION13.58%44 740
CANADIAN PACIFIC RAILWAY LTD28.07%32 261
KANSAS CITY SOUTHERN22.65%11 776