Union Pacific Announces First Quarter Results

Apr 26, 2001, 01:00 ET from Union Pacific Corporation

    OMAHA, Neb., April 26 /PRNewswire/ -- Union Pacific Corporation today
 reported net income for the first quarter of $181 million, or $.72 per diluted
 share.  This compares to net income of $185 million, or $.74 per diluted
 share, in the first quarter of 2000.
     "We are pleased with our first quarter performance, given the difficult
 economic environment," said Richard K. Davidson, chairman and chief executive
 officer.  "Looking forward, we are confident in our business strategy and
 competitive position, although economic conditions continue to cause near-term
 uncertainty," he continued.  "As we manage through the current environment,
 our unparalleled franchise and diversity of commodity mix enable us to
 maintain a very positive long-term outlook for the company and its
 shareholders."
     For the first quarter, Union Pacific Corporation, excluding Overnite,
 reported operating income of $430 million compared to $451 million for the
 same period in 2000. The Railroad's commodity revenue increased 1 percent to
 $2.6 billion for the quarter on the strength of its diverse traffic base.
 Energy revenue was up 12 percent to a record $593 million.  The Agricultural
 Products and Intermodal business groups also had solid revenue growth in the
 first quarter, showing gains of 6 and 2 percent, respectively.  The
 economically sensitive commodities of Automotive, Industrial Products and
 Chemicals all declined from 2000 levels by about 5 percent.  The operating
 ratio was up .9 percentage points to 83.8 percent from 82.9 percent in first
 quarter 2000.  Rising fuel costs added $35 million in operating expenses, or
 1.3 percentage points on the ratio, and were partially offset by productivity
 improvements.
     Overnite Transportation reported an improved first quarter operating
 income of $9 million compared to $1 million in the first quarter of 2000, as
 operating efficiencies took hold and strike-related costs decreased
 significantly. Revenue increased 4 percent to $280 million from $269 million,
 while Overnite's operating ratio fell 2.9 percentage points to 96.9 percent.
     Union Pacific Corporation is one of America's leading transportation
 companies.  Its principal operating company, Union Pacific Railroad, is the
 largest railroad in North America, covering 23 states across the western
 two-thirds of the United States.  A strong focus on quality and a
 strategically advantageous route structure enable the company to serve
 customers in critical and fast growing markets.  It is a leading carrier of
 low-sulfur coal used in electrical power generation and has broad coverage of
 the large chemical-producing areas along the Gulf Coast.  With competitive
 long-haul routes between all major West Coast ports and eastern gateways, and
 as the only railroad to serve all six gateways to Mexico, Union Pacific has
 the premier rail franchise in North America.  The Corporation also owns
 Overnite Transportation, a nationwide less-than-truckload carrier, and Fenix,
 a group of affiliated technology companies.
 
     Supplemental financial information is attached.
 
     Additional information is available at our website: http://www.up.com .
 Our contact for investors is Beth Whited at 402 271-4227.  Our media contact
 is John Bromley who can be reached at 402 271-3475.
 
     This press release and related materials may contain statements about the
 Corporation's future that are not statements of historical fact.  These
 statements are "forward-looking statements" for purposes of applicable
 securities laws, and are based on current information and/or management's good
 faith belief as to future events.  Forward-looking statements include, without
 limitation, projections and estimates of earnings, revenues, cost-savings,
 expenses, or other financial items; statements of management's plans,
 strategies and objectives for future operation, and management's expectations
 as to future performance and operations and the time by which objectives will
 be achieved; statements concerning proposed new products and services; and
 statements regarding future economic or market conditions or performance.
 
     Forward-looking statements are subject to risks and uncertainties.  Actual
 performance or results could differ materially from that anticipated by the
 forward-looking statement.    Important factors that could cause such
 differences include, but are not limited to, the Corporation's success in
 implementing its financial and operational initiatives; the impact of industry
 competition, conditions, performance and consolidation; legislative and/or
 regulatory developments, including initiatives to re-regulate the rail
 business; natural events such as severe weather, floods and earthquakes;
 adverse general economic conditions, both within the United States and
 globally; changes in fuel prices; changes in labor costs; labor stoppages; and
 the outcome of claims and litigation.
     Forward-looking statements speak only as of the date the statement was
 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 any forward-looking statement, no inference should be drawn that the
 Corporation will make additional updates with respect to that statement or any
 other forward-looking statements.
 
 
                           UNION PACIFIC CORPORATION
                       STATEMENTS OF CONSOLIDATED INCOME
                      For the Three Months Ended March 31
                (Dollars in Millions, Except Per Share Amounts)
                                  (Unaudited)
 
                                             2001        2000     Pct Chg
 
     Operating Revenues                     $2,943      $2,906     +   1
     Operating Expenses                      2,504       2,454     +   2
 
     Operating Income                          439         452     -   3
     Other Income - Net                         30          20     +  50
     Interest Expense                         (181)       (182)    -   1
 
     Income Before Income Taxes                288         290     -   1
     Income Tax Expense                       (107)       (105)    +   2
 
     Net Income                               $181        $185     -   2
 
     Basic Earnings Per Share                $0.73       $0.75     -   3
 
     Diluted Earnings Per Share              $0.72       $0.74     -   3
 
     Average Basic Shares Outstanding (MM)   246.9       246.4
 
     Average Diluted Shares Outstanding
      (MM)                                   271.0       269.3
 
 
 
                             UNION PACIFIC RAILROAD
                                 REVENUE DETAIL
                      For the Three Months Ended March 31
                                  (Unaudited)
 
                                              2001          2000      Pct Chg
     Commodity Revenue (000):
     Agricultural                           $369,788       $349,494    +   6
     Automotive                              275,639        290,136    -   5
     Chemicals                               390,252        411,942    -   5
     Energy                                  593,341        529,095    +  12
     Industrial Products                     471,960        492,046    -   4
     Intermodal                              450,100        441,057    +   2
 
       Total                              $2,551,080     $2,513,770    +   1
 
     Revenue Carloads:
     Agricultural                            219,155        220,988    -   1
     Automotive                              185,447        199,262    -   7
     Chemicals                               219,403        231,796    -   5
     Energy                                  536,546        479,813    +  12
     Industrial Products                     335,827        354,856    -   5
     Intermodal                              682,675        687,035    -   1
 
       Total                               2,179,053      2,173,750        -
 
     Average Revenue per Car:
     Agricultural                             $1,687         $1,582    +   7
     Automotive                                1,486          1,456    +   2
     Chemicals                                 1,779          1,777        -
     Energy                                    1,106          1,103        -
     Industrial Products                       1,405          1,387    +   1
     Intermodal                                  659            642    +   3
 
       Total                                  $1,171         $1,156    +   1
 
 
                         RAIL AND OTHER OPERATIONS - a)
 
                              REVIEW OF OPERATIONS
                      For the Three Months Ended March 31
               (Dollars in Millions, Except Operating Statistics)
                                  (Unaudited)
 
                                 2001          2000         Pct Chg
 
     Operating Revenues         $2,663        $2,637         +   1
 
     Operating Expenses
     Salaries and Benefits         914           900         +   2
     Rent Expense                  307           292         +   5
     Depreciation                  280           270         +   4
     Fuel and Utilities            334           293         +  14
     Materials and Supplies        126           145         -  13
     Other                         272           286         -   5
         Total                   2,233         2,186         +   2
 
     Operating Income             $430          $451         -   5
 
     Operating Statistics:
     Revenue Carloads
      (Thousands)                2,179         2,174             -
     Revenue Ton-Miles
      (Millions)               123,718       121,243         +   2
     Gross Ton-Miles
      (Millions)               232,180       232,017             -
     Rev/RTM (Commodity
      Revenue Based)              2.06 cents    2.07 cents
     Average Commodity
      Revenue Per Car           $1,171        $1,156             +
     Average Employees          48,760        50,767         -   4
     Average Fuel Price
      Per Gallon                  92.2 cents    81.3 cents
     Fuel Consumed in
      Gallons (MM)                 322           324         -   1
     Fuel Consumption Rate
      (Gal/000 GTM)              1.387         1.396             -
     Operating Ratio (%)          83.8          82.9         + 0.9 pt.
 
     a) Excludes Overnite's operations.
 
 
                         OVERNITE TRANSPORTATION COMPANY
                                REVIEW OF OPERATIONS
                        For the Three Months Ended March 31
                 (Dollars in Millions, Except Operating Statistics)
                                    (Unaudited)
 
                                            2001         2000      Pct Chg
 
     Operating Revenues                     $280         $269        +  4
 
     Operating Expenses
     Salaries and Benefits                   171          165        +  4
     Rent Expense                             22           23        -  4
     Depreciation                             12           12           -
     Fuel and Utilities                       18           18           -
     Materials and Supplies                   13           11        + 18
     Other                                    35           39        - 10
          Total                              271          268        +  1
 
     Operating Income                         $9           $1           F
 
     Operating Statistics:
     Millions of Pounds Hauled - LTL       1,840        1,856        -  1
     Millions of Pounds Hauled - Combined  1,964        1,978        -  1
     Revenue/CWT - LTL                    $14.04       $13.44        +  4
     Revenue/CWT - Combined               $13.61       $13.00        +  5
     Average Employees                    11,427       11,101        +  3
     Average Fuel Price Per Gallon          89.8 cents   86.3 cents  +  4
     Fuel Consumed in Gallons (000s)      14,854       14,493        +  2
     Operating Ratio (%)                    96.9         99.8       - 2.9pt.
 
 
                           UNION  PACIFIC  CORPORATION
                   STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
                    As of March 31, 2001 and December 31, 2000
                               (Dollars in Millions)
                                    (Unaudited)
 
                                                March 31,      December 31,
                                                  2001            2000
       Assets:
            Cash and Temporary Investments        $73             $105
            Other Current Assets                1,229            1,180
            Investments                           757              740
            Properties - Net                   28,281           28,196
            Other Assets                          412              278
 
               Total                          $30,752          $30,499
 
       Liabilities and Shareholders'
        Equity:
            Current Portion of Long Term
             Debt                                $203             $207
            Other Current Liabilities           2,547            2,755
            Long Term Debt                      8,435            8,144
            Deferred Income Taxes               7,241            7,143
            Other Long Term Liabilities         2,015            2,088
            Convertible Preferred Shares        1,500            1,500
            Common Shareholders' Equity         8,811            8,662
 
               Total                          $30,752          $30,499
 
 
                            UNION  PACIFIC  CORPORATION
                       STATEMENTS OF CONSOLIDATED CASH FLOWS
                        For the Three Months Ended March 31
                               (Dollars in Millions)
                                    (Unaudited)
 
                                               2001               2000
      Operating Activities:
            Net Income                         $181               $185
            Depreciation                        292                282
            Deferred Income Taxes                77                 91
            Other                              (345)              (203)
            Cash Provided by Operating
             Activities                         205                355
 
      Investing Activities:
            Capital Investments                (361)              (360)
            Other                              (133)                 6
            Cash Used in Investing
             Activities                        (494)              (354)
 
      Financing Activities:
            Dividends Paid                      (49)               (52)
            Debt Repaid                        (214)              (168)
            Financings and Other - Net          520                104
            Cash Provided by (Used in)
             Financing Activities               257               (116)
 
      Net Change in Cash and Temporary
       Investments                             $(32)             $(115)
 
 
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SOURCE Union Pacific Corporation
    OMAHA, Neb., April 26 /PRNewswire/ -- Union Pacific Corporation today
 reported net income for the first quarter of $181 million, or $.72 per diluted
 share.  This compares to net income of $185 million, or $.74 per diluted
 share, in the first quarter of 2000.
     "We are pleased with our first quarter performance, given the difficult
 economic environment," said Richard K. Davidson, chairman and chief executive
 officer.  "Looking forward, we are confident in our business strategy and
 competitive position, although economic conditions continue to cause near-term
 uncertainty," he continued.  "As we manage through the current environment,
 our unparalleled franchise and diversity of commodity mix enable us to
 maintain a very positive long-term outlook for the company and its
 shareholders."
     For the first quarter, Union Pacific Corporation, excluding Overnite,
 reported operating income of $430 million compared to $451 million for the
 same period in 2000. The Railroad's commodity revenue increased 1 percent to
 $2.6 billion for the quarter on the strength of its diverse traffic base.
 Energy revenue was up 12 percent to a record $593 million.  The Agricultural
 Products and Intermodal business groups also had solid revenue growth in the
 first quarter, showing gains of 6 and 2 percent, respectively.  The
 economically sensitive commodities of Automotive, Industrial Products and
 Chemicals all declined from 2000 levels by about 5 percent.  The operating
 ratio was up .9 percentage points to 83.8 percent from 82.9 percent in first
 quarter 2000.  Rising fuel costs added $35 million in operating expenses, or
 1.3 percentage points on the ratio, and were partially offset by productivity
 improvements.
     Overnite Transportation reported an improved first quarter operating
 income of $9 million compared to $1 million in the first quarter of 2000, as
 operating efficiencies took hold and strike-related costs decreased
 significantly. Revenue increased 4 percent to $280 million from $269 million,
 while Overnite's operating ratio fell 2.9 percentage points to 96.9 percent.
     Union Pacific Corporation is one of America's leading transportation
 companies.  Its principal operating company, Union Pacific Railroad, is the
 largest railroad in North America, covering 23 states across the western
 two-thirds of the United States.  A strong focus on quality and a
 strategically advantageous route structure enable the company to serve
 customers in critical and fast growing markets.  It is a leading carrier of
 low-sulfur coal used in electrical power generation and has broad coverage of
 the large chemical-producing areas along the Gulf Coast.  With competitive
 long-haul routes between all major West Coast ports and eastern gateways, and
 as the only railroad to serve all six gateways to Mexico, Union Pacific has
 the premier rail franchise in North America.  The Corporation also owns
 Overnite Transportation, a nationwide less-than-truckload carrier, and Fenix,
 a group of affiliated technology companies.
 
     Supplemental financial information is attached.
 
     Additional information is available at our website: http://www.up.com .
 Our contact for investors is Beth Whited at 402 271-4227.  Our media contact
 is John Bromley who can be reached at 402 271-3475.
 
     This press release and related materials may contain statements about the
 Corporation's future that are not statements of historical fact.  These
 statements are "forward-looking statements" for purposes of applicable
 securities laws, and are based on current information and/or management's good
 faith belief as to future events.  Forward-looking statements include, without
 limitation, projections and estimates of earnings, revenues, cost-savings,
 expenses, or other financial items; statements of management's plans,
 strategies and objectives for future operation, and management's expectations
 as to future performance and operations and the time by which objectives will
 be achieved; statements concerning proposed new products and services; and
 statements regarding future economic or market conditions or performance.
 
     Forward-looking statements are subject to risks and uncertainties.  Actual
 performance or results could differ materially from that anticipated by the
 forward-looking statement.    Important factors that could cause such
 differences include, but are not limited to, the Corporation's success in
 implementing its financial and operational initiatives; the impact of industry
 competition, conditions, performance and consolidation; legislative and/or
 regulatory developments, including initiatives to re-regulate the rail
 business; natural events such as severe weather, floods and earthquakes;
 adverse general economic conditions, both within the United States and
 globally; changes in fuel prices; changes in labor costs; labor stoppages; and
 the outcome of claims and litigation.
     Forward-looking statements speak only as of the date the statement was
 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 any forward-looking statement, no inference should be drawn that the
 Corporation will make additional updates with respect to that statement or any
 other forward-looking statements.
 
 
                           UNION PACIFIC CORPORATION
                       STATEMENTS OF CONSOLIDATED INCOME
                      For the Three Months Ended March 31
                (Dollars in Millions, Except Per Share Amounts)
                                  (Unaudited)
 
                                             2001        2000     Pct Chg
 
     Operating Revenues                     $2,943      $2,906     +   1
     Operating Expenses                      2,504       2,454     +   2
 
     Operating Income                          439         452     -   3
     Other Income - Net                         30          20     +  50
     Interest Expense                         (181)       (182)    -   1
 
     Income Before Income Taxes                288         290     -   1
     Income Tax Expense                       (107)       (105)    +   2
 
     Net Income                               $181        $185     -   2
 
     Basic Earnings Per Share                $0.73       $0.75     -   3
 
     Diluted Earnings Per Share              $0.72       $0.74     -   3
 
     Average Basic Shares Outstanding (MM)   246.9       246.4
 
     Average Diluted Shares Outstanding
      (MM)                                   271.0       269.3
 
 
 
                             UNION PACIFIC RAILROAD
                                 REVENUE DETAIL
                      For the Three Months Ended March 31
                                  (Unaudited)
 
                                              2001          2000      Pct Chg
     Commodity Revenue (000):
     Agricultural                           $369,788       $349,494    +   6
     Automotive                              275,639        290,136    -   5
     Chemicals                               390,252        411,942    -   5
     Energy                                  593,341        529,095    +  12
     Industrial Products                     471,960        492,046    -   4
     Intermodal                              450,100        441,057    +   2
 
       Total                              $2,551,080     $2,513,770    +   1
 
     Revenue Carloads:
     Agricultural                            219,155        220,988    -   1
     Automotive                              185,447        199,262    -   7
     Chemicals                               219,403        231,796    -   5
     Energy                                  536,546        479,813    +  12
     Industrial Products                     335,827        354,856    -   5
     Intermodal                              682,675        687,035    -   1
 
       Total                               2,179,053      2,173,750        -
 
     Average Revenue per Car:
     Agricultural                             $1,687         $1,582    +   7
     Automotive                                1,486          1,456    +   2
     Chemicals                                 1,779          1,777        -
     Energy                                    1,106          1,103        -
     Industrial Products                       1,405          1,387    +   1
     Intermodal                                  659            642    +   3
 
       Total                                  $1,171         $1,156    +   1
 
 
                         RAIL AND OTHER OPERATIONS - a)
 
                              REVIEW OF OPERATIONS
                      For the Three Months Ended March 31
               (Dollars in Millions, Except Operating Statistics)
                                  (Unaudited)
 
                                 2001          2000         Pct Chg
 
     Operating Revenues         $2,663        $2,637         +   1
 
     Operating Expenses
     Salaries and Benefits         914           900         +   2
     Rent Expense                  307           292         +   5
     Depreciation                  280           270         +   4
     Fuel and Utilities            334           293         +  14
     Materials and Supplies        126           145         -  13
     Other                         272           286         -   5
         Total                   2,233         2,186         +   2
 
     Operating Income             $430          $451         -   5
 
     Operating Statistics:
     Revenue Carloads
      (Thousands)                2,179         2,174             -
     Revenue Ton-Miles
      (Millions)               123,718       121,243         +   2
     Gross Ton-Miles
      (Millions)               232,180       232,017             -
     Rev/RTM (Commodity
      Revenue Based)              2.06 cents    2.07 cents
     Average Commodity
      Revenue Per Car           $1,171        $1,156             +
     Average Employees          48,760        50,767         -   4
     Average Fuel Price
      Per Gallon                  92.2 cents    81.3 cents
     Fuel Consumed in
      Gallons (MM)                 322           324         -   1
     Fuel Consumption Rate
      (Gal/000 GTM)              1.387         1.396             -
     Operating Ratio (%)          83.8          82.9         + 0.9 pt.
 
     a) Excludes Overnite's operations.
 
 
                         OVERNITE TRANSPORTATION COMPANY
                                REVIEW OF OPERATIONS
                        For the Three Months Ended March 31
                 (Dollars in Millions, Except Operating Statistics)
                                    (Unaudited)
 
                                            2001         2000      Pct Chg
 
     Operating Revenues                     $280         $269        +  4
 
     Operating Expenses
     Salaries and Benefits                   171          165        +  4
     Rent Expense                             22           23        -  4
     Depreciation                             12           12           -
     Fuel and Utilities                       18           18           -
     Materials and Supplies                   13           11        + 18
     Other                                    35           39        - 10
          Total                              271          268        +  1
 
     Operating Income                         $9           $1           F
 
     Operating Statistics:
     Millions of Pounds Hauled - LTL       1,840        1,856        -  1
     Millions of Pounds Hauled - Combined  1,964        1,978        -  1
     Revenue/CWT - LTL                    $14.04       $13.44        +  4
     Revenue/CWT - Combined               $13.61       $13.00        +  5
     Average Employees                    11,427       11,101        +  3
     Average Fuel Price Per Gallon          89.8 cents   86.3 cents  +  4
     Fuel Consumed in Gallons (000s)      14,854       14,493        +  2
     Operating Ratio (%)                    96.9         99.8       - 2.9pt.
 
 
                           UNION  PACIFIC  CORPORATION
                   STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
                    As of March 31, 2001 and December 31, 2000
                               (Dollars in Millions)
                                    (Unaudited)
 
                                                March 31,      December 31,
                                                  2001            2000
       Assets:
            Cash and Temporary Investments        $73             $105
            Other Current Assets                1,229            1,180
            Investments                           757              740
            Properties - Net                   28,281           28,196
            Other Assets                          412              278
 
               Total                          $30,752          $30,499
 
       Liabilities and Shareholders'
        Equity:
            Current Portion of Long Term
             Debt                                $203             $207
            Other Current Liabilities           2,547            2,755
            Long Term Debt                      8,435            8,144
            Deferred Income Taxes               7,241            7,143
            Other Long Term Liabilities         2,015            2,088
            Convertible Preferred Shares        1,500            1,500
            Common Shareholders' Equity         8,811            8,662
 
               Total                          $30,752          $30,499
 
 
                            UNION  PACIFIC  CORPORATION
                       STATEMENTS OF CONSOLIDATED CASH FLOWS
                        For the Three Months Ended March 31
                               (Dollars in Millions)
                                    (Unaudited)
 
                                               2001               2000
      Operating Activities:
            Net Income                         $181               $185
            Depreciation                        292                282
            Deferred Income Taxes                77                 91
            Other                              (345)              (203)
            Cash Provided by Operating
             Activities                         205                355
 
      Investing Activities:
            Capital Investments                (361)              (360)
            Other                              (133)                 6
            Cash Used in Investing
             Activities                        (494)              (354)
 
      Financing Activities:
            Dividends Paid                      (49)               (52)
            Debt Repaid                        (214)              (168)
            Financings and Other - Net          520                104
            Cash Provided by (Used in)
             Financing Activities               257               (116)
 
      Net Change in Cash and Temporary
       Investments                             $(32)             $(115)
 
 
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 SOURCE  Union Pacific Corporation