Union Pacific (UP) has reported its 2017 first quarter financial results with net income of nearly $1.1 billion, or a first quarter record of $1.32 per diluted share, compared to the 2016 first quarter’s $1 billion net income, or $1.16 per diluted share.
In the 2017 first quarter, business volumes, measured by total revenue carloads, were up by 2 percent from the same quarter last year. Volume increases in coal, agricultural products and industrial products more than offset declines in chemicals and automotive.
"This is a very solid start to the year, especially given the weather challenges we encountered on the Western part of our network earlier in the quarter," said UP Chairman, President and CEO Lance Fritz.
Operating revenue increased by 6 percent to $5.1 billion compared to last year’s first quarter. The company’s operating ratio of 65.1 percent was flat compared to the first quarter 2016. Operating income was up by 6 percent to $1.8 billion.
Quarterly freight revenue increased 6 percent compared to the first quarter 2016, with volume growth, increased fuel surcharge revenue, core pricing gains and positive mix all contributing to the increase.
"In keeping with our strategic value tracks, our engaged employees worked safely and productively under very difficult circumstances during the quarter,” Fritz added. “As a result, operations were restored quickly as we continued to focus on providing an excellent customer experience."