* Fourth Quarter Results
* Fourth quarter earnings per diluted share of
* Fourth quarter operating revenue up 8%
* Full Year 2022 Results
* Full year earnings per diluted share of
* Full year operating income up 6%
Reported net income for full year 2022 was
'In the fourth quarter, we grew carloads as we continued to face challenges hiring craft professionals in critical locations and experienced the impact of extreme winter weather on our network in December,' said
Fourth Quarter Summary
Financial Results: Revenue Growth Offset by Higher Expenses Associated with Inflation and Network Recovery; Fourth Quarter Record for Operating Revenue
Fourth Quarter 2022 Compared to Fourth Quarter 2021
Operating revenue of
Business volumes, as measured by total revenue carloads, were up 1%.
Operating income of
The company repurchased 3.5 million shares in fourth quarter 2022 at an aggregate cost of
Operating Performance: Service and Efficiency Measures Impacted by Network Congestion and Winter Weather; Fourth Quarter Record for Fuel Consumption Rate
Fourth Quarter 2022 Compared to Fourth Quarter 2021
Quarterly freight car velocity was 191 daily miles per car, a 3% decline.
Quarterly locomotive productivity was 123 gross ton-miles (GTMs) per horsepower day, a 5% decline.
Average maximum train length decreased 1% to 9,191 feet.
Quarterly workforce productivity decreased 3% to 1,010 car miles per employee.
Fuel consumption rate of 1.064, measured in gallons of fuel per thousand GTMs, improved 2%.
2022 Full Year Summary
Financial Results: Fuel Surcharge, Core Pricing Gains, and Volume Drive Revenue Growth; Records for Operating Revenue, Operating Income, Net Income, and Earnings Per Share
Full Year 2022 Compared to Full Year 2021
Operating revenue of
Business volumes, as measured by total revenue carloads, grew 2%.
Operating Income of
The company repurchased 27.1 million shares in 2022 at an aggregate cost of
Operating Performance: Network Operations Impacted by Crew Availability and Operational Inefficiencies; Record for Fuel Consumption Rate
Full Year 2022 Compared to Full Year 2021
Freight car velocity was 191 daily miles per car, a 6% decline.
Locomotive productivity was 125 GTMs per horsepower day, a 6% decline.
Average maximum train length of 9,329 feet was flat.
Workforce productivity of 1,036 car miles per employee was flat.
Fuel consumption rate of 1.078, measured in gallons of fuel per thousand GTMs, improved 1%.
2023 Guidance
Full year carloads to exceed Industrial Production
Current Industrial Production forecast: -0.5%
Full year operating ratio improvement
Pricing dollars in excess of inflation dollars
Capital Allocation:
Capital spending less than 15% of revenue
Capital plan of
Long term dividend payout target of ~45% of earnings
Excess cash to share repurchases
Fourth Quarter 2022 Earnings Conference Call
About
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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 (including those in response to increased traffic), its results of operations, and potential impacts of the COVID-19 pandemic and the Russian-Ukraine conflict. 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.
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