Union Pacific (UP) has reported its 2017 second quarter financial results with net income of nearly $1.2 billion, or a second quarter record of $1.45 per diluted share, compared to the 2016 second quarter’s approximately $1 billion net income, or $1.17 per diluted share.
In the 2017 second quarter, business volumes, measured by total revenue carloads, were up by 5 percent from the same quarter last year. Volume increases in coal, industrial products, agricultural products and intermodal more than offset declines in chemicals and automotive.
"I am pleased with our results through the first six months, and look forward to continuing our momentum through the remainder of the year," said UP Chairman, President and CEO Lance Fritz. "Guided by our strategic value tracks, our entire team is focused on providing an excellent customer experience while safely and efficiently delivering on our innovative productivity initiatives."
Operating revenue increased by 10 percent to $5.3 billion compared to last year’s second quarter. The company’s operating ratio of 61.8 percent improved 3.4 points compared to the second quarter 2016. Operating income was up by 21 percent to $2 billion.
Quarterly freight revenue increased 11 percent compared to the second quarter 2016, as volume growth, increased fuel surcharge revenue, core pricing gains and positive mix of traffic all contributed to the increase.
"Absolute business volumes should be stronger in the second half than the first half, although year-over-year comparisons will be more challenging,” continued Fritz. “In this environment we will focus on our growth opportunities. In addition, we will continue to make progress on our G55 + 0 initiatives as we work to make Union Pacific a stronger, more efficient company. We are confident these efforts will generate top-line growth, margin improvement and greater returns for our shareholders."