EX-99.1 2 unp-20211021xex99_1.htm EX-99.1 Ex 99.1

Exhibit 99.1

Union Pacific Reports Third Quarter 2021 Results

Omaha, Neb., October 21, 2021 – Union Pacific Corporation (NYSE: UNP) today reported 2021 third quarter net income of $1.7 billion, or $2.57 per diluted share. This compares to $1.4 billion, or $2.01 per diluted share, in the third quarter 2020.



“The Union Pacific team successfully navigated global supply chain disruptions, a major bridge outage, and additional weather events to produce strong quarterly revenue growth and financial results,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “In the quarter, the team delivered solid core pricing gains, leveraged business development to produce a positive business mix, and generated productivity to offset flat volume. We also set a quarterly record for fuel consumption rate as we continue to make strides towards our goal to reduce our absolute greenhouse gas emissions. As we close out 2021, we are committed to improving our safety performance and service product to support our customers and the broader supply chain to handle the strong demand for freight transportation.”



Financial Results: Third Quarter Records for Operating Income, Operating Ratio, Net Income, and Earnings Per Share

Third Quarter 2021 Compared to Third Quarter 2020



·

Operating revenue of $5.6 billion was up 13%.

·

Business volumes, as measured by total revenue carloads, were flat.

·

Union Pacific’s 56.3% operating ratio improved 240 basis points. Higher fuel prices negatively impacted the operating ratio by 140 basis points.

·

Operating Income of $2.4 billion was up 20%.

·

The company repurchased 8.6 million shares in third quarter 2021 at an aggregate cost of $1.8 billion.



Operating Performance: Quarterly Record for Fuel Consumption Rate; Third Quarter Record for Workforce Productivity

Third Quarter 2021 Compared to Third Quarter 2020



·

Network operations challenged by wildfires and other weather events, reflected in quarterly freight car velocity of 195 daily miles per car, a 13% decline.

·

Quarterly locomotive productivity was 127 gross ton-miles (GTMs) per horsepower day, an 8% decline.

·

Quarterly workforce productivity was 1,044 car miles per employee, a 5% improvement.

·

Average maximum train length was 9,359 feet, a 4% increase.

·

Fuel consumption rate, measured in gallons of fuel per thousand GTMs, improved 1%.

·

Union Pacific’s year-to-date reportable personal injury rate deteriorated to 1.00 per 200,000 employee-hours compared to 0.90 for year-to-date 2020.

 

-more-

 

 

-2-

 

Third Quarter 2021 Earnings Conference Call

Union Pacific will webcast its third quarter 2021 earnings release presentation live at www.up.com/investor and via teleconference on Thursday, October 21, 2021, at 8:45 a.m. Eastern Time. Participants may join the conference call by dialing 877-407-8293 (or for international participants, 201-689-8349).



ABOUT UNION PACIFIC

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Union Pacific Investor contact: Brad Stock at 402-544-4227 or bkstock@up.com

Union Pacific Media contact: Clarissa Beyah at 402-957-4793 or cbeyah@up.com

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, its results of operations, and potential impacts of the COVID-19 pandemic.  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.



Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Company’s Annual Report on Form 10-K for 2020, which was filed with the SEC on February 5, 2021. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).



Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made. The Company 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 Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Millions, Except Per Share Amounts and Percentages,

3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2021  2020 

%

 

 

 2021  2020 

%

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

     Freight revenues

$

 5,166 

$

 4,596  12 

%

 

$

 14,947 

$

 13,448  11 

%

     Other

 

 400 

 

 323  24 

 

 

 

 1,124 

 

 944  19 

 

Total operating revenues

 

 5,566 

 

 4,919  13 

 

 

 

 16,071 

 

 14,392  12 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 1,040 

 

 1,008  3 

 

 

 

 3,088 

 

 2,972  4 

 

     Depreciation

 

 553 

 

 555 

 -

 

 

 

 1,652 

 

 1,653 

 -

 

     Purchased services and materials

 

 510 

 

 508 

 -

 

 

 

 1,478 

 

 1,470  1 

 

     Fuel

 

 544 

 

 301  81 

 

 

 

 1,452 

 

 982  48 

 

     Equipment and other rents

 

 217 

 

 217 

 -

 

 

 

 629 

 

 655  (4)

 

     Other

 

 270 

 

 299  (10)

 

 

 

 874 

 

 832  5 

 

Total operating expenses

 

 3,134 

 

 2,888  9 

 

 

 

 9,173 

 

 8,564  7 

 

Operating Income

 

 2,432 

 

 2,031  20 

 

 

 

 6,898 

 

 5,828  18 

 

     Other income, net

 

 38 

 

 37  3 

 

 

 

 214 

 

 221  (3)

 

     Interest expense

 

 (290)

 

 (295) (2)

 

 

 

 (862)

 

 (862)

 -

 

Income before income taxes

 

 2,180 

 

 1,773  23 

 

 

 

 6,250 

 

 5,187  20 

 

Income taxes

 

 (507)

 

 (410) 24 

 

 

 

 (1,438)

 

 (1,218) 18 

 

Net Income

$

 1,673 

$

 1,363  23 

%

 

$

 4,812 

$

 3,969  21 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 2.58 

$

 2.02  28 

%

 

$

 7.31 

$

 5.85  25 

%

     Earnings per share - diluted

$

 2.57 

$

 2.01  28 

 

 

$

 7.29 

$

 5.83  25 

 

     Weighted average number of shares - basic

 

 648.7 

 

 675.0  (4)

 

 

 

 658.3 

 

 679.0  (3)

 

     Weighted average number of shares - diluted

 

 650.3 

 

 676.8  (4)

 

 

 

 659.9 

 

 680.7  (3)

 

     Dividends declared per share

$

 1.07 

$

 0.97  10 

 

 

$

 3.11 

$

 2.91  7 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 56.3% 

 

 58.7%  (2.4)

pts

 

 

 57.1% 

 

 59.5%  (2.4)

pts

Effective Tax Rate

 

 23.3% 

 

 23.1%  0.2 

pts

 

 

 23.0% 

 

 23.5%  (0.5)

pts

1

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2021  2020 

%

 

 

 2021  2020 

%

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 731 

$

 695  5 

%

 

$

 2,292 

$

 2,028  13 

%

     Fertilizer

 

 172 

 

 157  10 

 

 

 

 521 

 

 499  4 

 

     Food & refrigerated

 

 253 

 

 239  6 

 

 

 

 739 

 

 694  6 

 

     Coal & renewables

 

 531 

 

 387  37 

 

 

 

 1,295 

 

 1,177  10 

 

   Bulk

 

 1,687 

 

 1,478  14 

 

 

 

 4,847 

 

 4,398  10 

 

     Industrial chemicals & plastics

 

 503 

 

 454  11 

 

 

 

 1,436 

 

 1,384  4 

 

     Metals & minerals

 

 488 

 

 365  34 

 

 

 

 1,330 

 

 1,202  11 

 

     Forest products

 

 342 

 

 284  20 

 

 

 

 1,006 

 

 853  18 

 

     Energy & specialized markets

 

 578 

 

 464  25 

 

 

 

 1,654 

 

 1,522  9 

 

   Industrial

 

 1,911 

 

 1,567  22 

 

 

 

 5,426 

 

 4,961  9 

 

     Automotive

 

 417 

 

 481  (13)

 

 

 

 1,292 

 

 1,194  8 

 

     Intermodal

 

 1,151 

 

 1,070  8 

 

 

 

 3,382 

 

 2,895  17 

 

   Premium

 

 1,568 

 

 1,551  1 

 

 

 

 4,674 

 

 4,089  14 

 

Total

$

 5,166 

$

 4,596  12 

%

 

$

 14,947 

$

 13,448  11 

%

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 

 185 

 

 187  (1)

%

 

 

 592 

 

 529  12 

%

     Fertilizer

 

 55 

 

 50  10 

 

 

 

 153 

 

 149  3 

 

     Food & refrigerated

 

 48 

 

 48 

 -

 

 

 

 141 

 

 137  3 

 

     Coal & renewables

 

 232 

 

 213  9 

 

 

 

 604 

 

 607 

 -

 

   Bulk

 

 520 

 

 498  4 

 

 

 

 1,490 

 

 1,422  5 

 

     Industrial chemicals & plastics

 

 153 

 

 144  6 

 

 

 

 449 

 

 439  2 

 

     Metals & minerals

 

 188 

 

 156  21 

 

 

 

 516 

 

 492  5 

 

     Forest products

 

 63 

 

 55  15 

 

 

 

 187 

 

 161  16 

 

     Energy & specialized markets

 

 145 

 

 125  16 

 

 

 

 422 

 

 402  5 

 

   Industrial

 

 549 

 

 480  14 

 

 

 

 1,574 

 

 1,494  5 

 

     Automotive

 

 166 

 

 203  (18)

 

 

 

 519 

 

 490  6 

 

     Intermodal [a]

 

 809 

 

 863  (6)

 

 

 

 2,483 

 

 2,296  8 

 

   Premium

 

 975 

 

 1,066  (9)

 

 

 

 3,002 

 

 2,786  8 

 

Total

 

 2,044 

 

 2,044 

 -

%

 

 

 6,066 

 

 5,702  6 

%

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

$

 3,937 

$

 3,705  6 

%

 

$

 3,869 

$

 3,832  1 

%

     Fertilizer

 

 3,125 

 

 3,172  (1)

 

 

 

 3,398 

 

 3,361  1 

 

     Food & refrigerated

 

 5,246 

 

 4,891  7 

 

 

 

 5,235 

 

 5,053  4 

 

     Coal & renewables

 

 2,298 

 

 1,820  26 

 

 

 

 2,146 

 

 1,938  11 

 

   Bulk

 

 3,244 

 

 2,964  9 

 

 

 

 3,252 

 

 3,092  5 

 

     Industrial chemicals & plastics

 

 3,277 

 

 3,154  4 

 

 

 

 3,195 

 

 3,150  1 

 

     Metals & minerals

 

 2,596 

 

 2,337  11 

 

 

 

 2,577 

 

 2,444  5 

 

     Forest products

 

 5,457 

 

 5,181  5 

 

 

 

 5,390 

 

 5,300  2 

 

     Energy & specialized markets

 

 3,996 

 

 3,742  7 

 

 

 

 3,924 

 

 3,791  4 

 

   Industrial

 

 3,482 

 

 3,271  6 

 

 

 

 3,448 

 

 3,321  4 

 

     Automotive

 

 2,500 

 

 2,368  6 

 

 

 

 2,488 

 

 2,438  2 

 

     Intermodal [a]

 

 1,424 

 

 1,238  15 

 

 

 

 1,362 

 

 1,261  8 

 

   Premium

 

 1,608 

 

 1,454  11 

 

 

 

 1,557 

 

 1,468  6 

 

Average 

$

 2,528 

$

 2,248  12 

%

 

$

 2,464 

$

 2,359  4 

%

[a]

For intermodal shipments each container or trailer equals one carload.

2

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)







 

 

 

 

 

 

 

 

 

 

Sep. 30,

Dec. 31,

Millions, Except Percentages

2021  2020 

Assets

 

 

 

 

     Cash and cash equivalents

$

 1,194 

$

 1,799 

     Short-term investments

 

 46 

 

 60 

     Other current assets

 

 2,570 

 

 2,355 

     Investments

 

 2,273 

 

 2,164 

     Properties, net

 

 54,362 

 

 54,161 

     Operating lease assets

 

 1,630 

 

 1,610 

     Other assets

 

 285 

 

 249 

Total assets

$

 62,360 

$

 62,398 

 

 

 

 

 

Liabilities and Common Shareholders' Equity

 

 

 

 

     Debt due within one year

$

 1,835 

$

 1,069 

     Other current liabilities

 

 3,276 

 

 3,104 

     Debt due after one year

 

 27,560 

 

 25,660 

     Operating lease liabilities

 

 1,262 

 

 1,283 

     Deferred income taxes

 

 12,500 

 

 12,247 

     Other long-term liabilities

 

 2,010 

 

 2,077 

Total liabilities

  

 48,443 

 

 45,440 

Total common shareholders' equity

 

 13,917 

 

 16,958 

Total liabilities and common shareholders' equity

$

 62,360 

$

 62,398 







3

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)







 

 

 

 

 

 

 

 

 

Millions,

Year-to-Date

For the Periods Ended September 30,

 2021  2020 

Operating Activities

 

 

 

 

     Net income

$

 4,812 

$

 3,969 

     Depreciation

 

 1,652 

 

 1,653 

     Deferred income taxes

 

 189 

 

 327 

     Other - net

 

 (150)

 

 44 

Cash provided by operating activities

 

 6,503 

 

 5,993 

Investing Activities

 

 

 

 

     Capital investments

 

 (1,945)

 

 (2,294)

     Maturities of short-term investments

 

 64 

 

 106 

     Purchases of short-term investments

 

 (40)

 

 (106)

     Other - net

 

 129 

 

 213 

Cash used in investing activities

 

 (1,792)

 

 (2,081)

Financing Activities

 

 

 

 

     Share repurchase programs

 

 (5,846)

 

 (2,956)

     Debt issued

 

 3,901 

 

 4,004 

     Dividends paid

 

 (2,045)

 

 (1,974)

     Debt repaid

 

 (1,120)

 

 (832)

     Debt Exchange

 

 (270)

 

 (327)

     Net issuance of commercial paper

 

 125 

 

 (2)

     Other - net

 

 (36)

 

 (63)

Cash used in financing activities

 

 (5,291)

 

 (2,150)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

 (580)

 

 1,762 

Cash, cash equivalents, and restricted cash at beginning of year

 

 1,818 

 

 856 

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

 1,238 

$

 2,618 

Free Cash Flow*

 

 

 

 

     Cash provided by operating activities

$

 6,503 

$

 5,993 

     Cash used in investing activities

 

 (1,792)

 

 (2,081)

     Dividends paid

 

 (2,045)

 

 (1,974)

Free cash flow

$

 2,666 

$

 1,938 



*Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing.



4

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



3rd Quarter

 

Year-to-Date

For the Periods Ended September 30,

 2021 

 

 2020 

%

 

 

 2021 

 

 2020 

%

 

Operating/Performance Statistics 

 

 

 

 

 

 

 

 

 

 

 

     Freight car velocity (daily miles per car) [a]

 195 

 

 223  (13)

%

 

 205 

 

 220  (7)

%

     Average train speed (miles per hour) *

 24.2 

 

 25.3  (4)

 

 

 24.8 

 

 25.8  (4)

 

     Average terminal dwell time (hours) *

 24.0 

 

 22.8  5 

 

 

 23.5 

 

 22.8  3 

 

     Locomotive productivity (GTMs per horsepower day)

 127 

 

 138  (8)

 

 

 135 

 

 135 

 -

 

     Gross ton-miles (GTMs) (millions)

 207,059 

 

 196,998  5 

 

 

 607,949 

 

 568,921  7 

 

     Train length (feet)

 9,359 

 

 8,984  4 

 

 

 9,340 

 

 8,676  8 

 

     Intermodal car trip plan compliance (%)

 66 

 

 77  (11)

pts

 

 72 

 

 81  (9)

pts

     Manifest/Automotive car trip plan compliance (%)

 60 

 

 72  (12)

pts

 

 65 

 

 70  (5)

pts

     Workforce productivity (car miles per employee)

 1,044 

 

 998  5 

 

 

 1,036 

 

 920  13 

 

     Total employees (average)

 29,810 

 

 30,155  (1)

 

 

 29,877 

 

 31,362  (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

Locomotive Fuel Statistics

 

 

 

 

 

 

 

 

 

 

 

     Average fuel price per gallon consumed

$2.37 

 

$       1.36 

 74 

%

 

$       2.13 

 

$       1.51 

 41 

%

     Fuel consumed in gallons (millions)

 221 

 

 213  4 

 

 

 660 

 

 627  5 

 

     Fuel consumption rate**

 1.068 

 

 1.084  (1)

 

 

 1.085 

 

 1.103  (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Ton-Miles (Millions)

 

 

 

 

 

 

 

 

 

 

 

     Grain & grain products

 17,326 

 

 18,035  (4)

%

 

 57,864 

 

 50,388  15 

%

     Fertilizer

 3,038 

 

 2,932  4 

 

 

 9,202 

 

 9,092  1 

 

     Food & refrigerated

 4,685 

 

 4,614  2 

 

 

 13,824 

 

 12,872  7 

 

     Coal & renewables

 24,539 

 

 20,374  20 

 

 

 62,791 

 

 58,567  7 

 

   Bulk

 49,588 

 

 45,955  8 

 

 

 143,681 

 

 130,919  10 

 

     Industrial chemicals & plastics

 7,746 

 

 7,170  8 

 

 

 22,791 

 

 20,630  10 

 

     Metals & minerals

 8,922 

 

 6,536  37 

 

 

 24,382 

 

 21,471  14 

 

     Forest products

 6,381 

 

 5,882  8 

 

 

 19,405 

 

 17,321  12 

 

     Energy & specialized markets

 9,780 

 

 8,005  22 

 

 

 28,482 

 

 27,327  4 

 

   Industrial

 32,829 

 

 27,593  19 

 

 

 95,060 

 

 86,749  10 

 

     Automotive

 3,507 

 

 4,269  (18)

 

 

 11,049 

 

 10,498  5 

 

     Intermodal

 18,390 

 

 20,096  (8)

 

 

 56,643 

 

 55,344  2 

 

   Premium

 21,897 

 

 24,365  (10)

 

 

 67,692 

 

 65,842  3 

 

Total

 104,314 

 

 97,913  7 

%

 

 306,433 

 

 283,510  8 

%

 

 

 

 

 

 

 

 

 

 

 

 



[a]Prior years have been realigned to conform to the current year presentation.



* Surface Transportation Board reported performance measures.    



**Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. 



5

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2021

Millions, Except Per Share Amounts and Percentages

1st Qtr 

2nd Qtr 

3rd Qtr 

Year-to-Date

Operating Revenues

 

 

 

 

 

 

 

 

     Freight revenues

$

 4,649 

$

 5,132 

$

 5,166 

$

 14,947 

     Other revenues

 

 352 

 

 372 

 

 400 

 

 1,124 

Total operating revenues

 

 5,001 

 

 5,504 

 

 5,566 

 

 16,071 

Operating Expenses

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 1,026 

 

 1,022 

 

 1,040 

 

 3,088 

     Depreciation

 

 549 

 

 550 

 

 553 

 

 1,652 

     Purchased services and materials

 

 490 

 

 478 

 

 510 

 

 1,478 

     Fuel

 

 411 

 

 497 

 

 544 

 

 1,452 

     Equipment and other rents

 

 212 

 

 200 

 

 217 

 

 629 

     Other

 

 320 

 

 284 

 

 270 

 

 874 

Total operating expenses

 

 3,008 

 

 3,031 

 

 3,134 

 

 9,173 

Operating Income

 

 1,993 

 

 2,473 

 

 2,432 

 

 6,898 

     Other income, net

 

 51 

 

 125 

 

 38 

 

 214 

     Interest expense

 

 (290)

 

 (282)

 

 (290)

 

 (862)

Income before income taxes

 

 1,754 

 

 2,316 

 

 2,180 

 

 6,250 

Income taxes

 

 (413)

 

 (518)

 

 (507)

 

 (1,438)

Net Income

$

 1,341 

$

 1,798 

$

 1,673 

$

 4,812 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 2.01 

$

 2.73 

$

 2.58 

$

 7.31 

     Earnings per share - diluted

$

 2.00 

$

 2.72 

$

 2.57 

$

 7.29 

     Weighted average number of shares - basic

 

 667.6 

 

 658.5 

 

 648.7 

 

 658.3 

     Weighted average number of shares - diluted

 

 669.2 

 

 660.1 

 

 650.3 

 

 659.9 

     Dividends declared per share

$

 0.97 

$

 1.07 

$

 1.07 

$

 3.11 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 60.1% 

 

 55.1% 

 

 56.3% 

 

 57.1% 

Effective Tax Rate

 

 23.5% 

 

 22.4% 

 

 23.3% 

 

 23.0% 





6

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



2021



1st Qtr 

2nd Qtr 

3rd Qtr 

Year-to-Date

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

     Grain & grain products

$

 766 

$

 795 

$

 731 

$

 2,292 

     Fertilizer

 

 170 

 

 179 

 

 172 

 

 521 

     Food & refrigerated

 

 235 

 

 251 

 

 253 

 

 739 

     Coal & renewables

 

 341 

 

 423 

 

 531 

 

 1,295 

   Bulk

 

 1,512 

 

 1,648 

 

 1,687 

 

 4,847 

     Industrial chemicals & plastics

 

 435 

 

 498 

 

 503 

 

 1,436 

     Metals & minerals

 

 375 

 

 467 

 

 488 

 

 1,330 

     Forest products

 

 316 

 

 348 

 

 342 

 

 1,006 

     Energy & specialized markets

 

 530 

 

 546 

 

 578 

 

 1,654 

   Industrial

 

 1,656 

 

 1,859 

 

 1,911 

 

 5,426 

     Automotive

 

 447 

 

 428 

 

 417 

 

 1,292 

     Intermodal

 

 1,034 

 

 1,197 

 

 1,151 

 

 3,382 

   Premium

 

 1,481 

 

 1,625 

 

 1,568 

 

 4,674 

Total

$

 4,649 

$

 5,132 

$

 5,166 

$

 14,947 

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

     Grain & grain products

 

 203 

 

 204 

 

 185 

 

 592 

     Fertilizer

 

 44 

 

 54 

 

 55 

 

 153 

     Food & refrigerated

 

 45 

 

 48 

 

 48 

 

 141 

     Coal & renewables

 

 174 

 

 198 

 

 232 

 

 604 

   Bulk

 

 466 

 

 504 

 

 520 

 

 1,490 

     Industrial chemicals & plastics

 

 140 

 

 156 

 

 153 

 

 449 

     Metals & minerals

 

 146 

 

 182 

 

 188 

 

 516 

     Forest products

 

 60 

 

 64 

 

 63 

 

 187 

     Energy & specialized markets

 

 139 

 

 138 

 

 145 

 

 422 

   Industrial

 

 485 

 

 540 

 

 549 

 

 1,574 

     Automotive

 

 180 

 

 173 

 

 166 

 

 519 

     Intermodal [a]

 

 796 

 

 878 

 

 809 

 

 2,483 

   Premium

 

 976 

 

 1,051 

 

 975 

 

 3,002 

Total

 

 1,927 

 

 2,095 

 

 2,044 

 

 6,066 

Average Revenue per Car

 

 

 

 

 

 

 

 

     Grain & grain products

$

 3,782 

$

 3,894 

$

 3,937 

$

 3,869 

     Fertilizer

 

 3,852 

 

 3,304 

 

 3,125 

 

 3,398 

     Food & refrigerated

 

 5,234 

 

 5,226 

 

 5,246 

 

 5,235 

     Coal & renewables

 

 1,958 

 

 2,134 

 

 2,298 

 

 2,146 

   Bulk

 

 3,246 

 

 3,266 

 

 3,244 

 

 3,252 

     Industrial chemicals & plastics

 

 3,113 

 

 3,189 

 

 3,277 

 

 3,195 

     Metals & minerals

 

 2,563 

 

 2,569 

 

 2,596 

 

 2,577 

     Forest products

 

 5,244 

 

 5,463 

 

 5,457 

 

 5,390 

     Energy & specialized markets

 

 3,828 

 

 3,944 

 

 3,996 

 

 3,924 

   Industrial

 

 3,417 

 

 3,442 

 

 3,482 

 

 3,448 

     Automotive

 

 2,485 

 

 2,479 

 

 2,500 

 

 2,488 

     Intermodal [a]

 

 1,299 

 

 1,363 

 

 1,424 

 

 1,362 

   Premium

 

 1,517 

 

 1,547 

 

 1,608 

 

 1,557 

Average 

$

 2,413 

$

 2,449 

$

 2,528 

$

 2,464 



[a]For intermodal shipments each container or trailer equals one carload.

7

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP









 

 

 

 

Adjusted Debt / Adjusted EBITDA*

 

 

 

 

Millions, Except Ratios

Sep. 30,

Dec. 31,

for the Trailing Twelve Months Ended [a]

 2021  2020 

Net income

$

 6,192 

$

 5,349 

Add:

 

 

 

 

Income tax expense

 

 1,851 

 

 1,631 

Depreciation

 

 2,209 

 

 2,210 

Interest expense

 

 1,141 

 

 1,141 

EBITDA

$

 11,393 

$

 10,331 

Adjustments:

 

 

 

 

Other income, net

 

 (280)

 

 (287)

Interest on operating lease liabilities**

 

 53 

 

 59 

Adjusted EBITDA

$

 11,166 

$

 10,103 

Debt

$

 29,395 

$

 26,729 

Operating lease liabilities

 

 1,568 

 

 1,604 

Unfunded pension and OPEB, net of taxes of $175 and $195

 

 585 

 

 637 

Adjusted debt

$

 31,548 

$

 28,970 

Adjusted debt / Adjusted EBITDA

 

 2.8 

 

 2.9 



 

 

 

 

Comparable Adjusted Debt / Adjusted EBITDA*

 

 

 

 



Sep. 30,

Dec. 31,

for the Trailing Twelve Months Ended [a]

 2021  2020 

Adjusted debt / Adjusted EBITDA

 

 2.83 

 

 2.87 

Factors Affecting Comparability:

 

 

 

 

Brazos yard impairment [b]

 

 (0.07)

 

 (0.08)

Comparable Adjusted Debt / Adjusted EBITDA

 2.76  2.79 





[a]The trailing twelve months income statement information ended September 30, 2021, is recalculated by taking the twelve months ended December 31, 2020, subtracting the nine months ended September 30, 2020, and adding the nine months ended September 30, 2021.

[b]Adjustments remove the impact of $209 million from net income and $69 million from income tax expense for the year ended December 31, 2020. See page 9 for a reconciliation to GAAP.







 

 

 

 



 

 

 

 

*Total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB obligation divided by net income plus income tax expense, depreciation, amortization, interest expense, and adjustments for other income and interest on operating lease liabilities. Adjusted debt to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and adjustments for other income and interest on operating lease liabilities) and comparable adjusted debt to adjusted EBITDA are considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe these measures are important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to adjusted EBITDA and comparable adjusted debt to adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income. The table above provides reconciliations from net income to adjusted debt to adjusted EBITDA and comparable adjusted debt to adjusted EBITDA. At September 30, 2021, and December 31, 2020, the incremental borrowing rate on operating lease liabilities was 3.4% and 3.7%, respectively.



**Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases.











8

 

 

UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP







 

 

 

 

 

 

 

 

 

Financial Performance*

 

 

 

 

 

 

 

 

 

Millions, Except Per Share Amounts and Percentages

 

Reported results

 

Brazos Yard

 

Adjusted results



(GAAP)

Impairment

(non-GAAP)

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

 

Income taxes

$

 1,631 

 

$

 69 

 

$

 1,700 

 

Net income

$

 5,349 

 

$

 209 

 

$

 5,558 

 



*

The above table reconciles our results for the year ended December 31, 2020, to adjusted results that exclude the impact of certain items identified as affecting comparability. We use adjusted income taxes and adjusted net income, as applicable, among other measures, to evaluate our actual operating performance. We believe these non-GAAP financial measures provide valuable information regarding earnings and business trends by excluding specific items that we believe are not indicative of our ongoing operating results of our business, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry. Since these are not measures of performance calculated in accordance with GAAP, they should be considered in addition to, rather than as a substitute for, income taxes and net income.

9