tracym
07-21-2022, 07:00 PM
Union Pacific Corporation (NYSE: UNP) today reported 2022 second quarter net income of $1.8 billion, or $2.93 per diluted share. This compares to 2021 second quarter net income of $1.8 billion, or $2.72 per diluted share.
"As anticipated, the Second Quarter was a tough one as we limited carloadings and increased expenses to recover network fluidity," said Lance Fritz, Union Pacific chairman, president, and chief executive officer. "We also experienced record high fuel prices and increasing inflation, adding pressure to our total costs. Offsetting the cost pressures were higher fuel surcharge revenue, solid core pricing, a positive mix, and continued train size initiatives. The result was operating revenue and income growth. Our network fluidity improved through the quarter, and we are positioned to grow volumes in the back half of 2022 while continuing to improve our service product."
Financial Results: Topline Growth Produces Quarterly Records for Operating Revenue, Operating Income, Net Income, and Earnings Per Share
Second Quarter 2022 Compared to Second Quarter 2021
Operating revenue of $6.3 billion was up 14% driven by higher fuel surcharge revenue, core pricing gains, and a positive business mix, offset slightly by volume declines.
Business volumes, as measured by total revenue carloads, were down 1%.
Union Pacific's 60.2% operating ratio deteriorated by 510 basis points. Higher fuel prices negatively impacted the operating ratio 130 basis points.
Operating income of $2.5 billion was up 1%.
The company repurchased 3.1 million shares in second quarter 2022 at an aggregate cost of $722 million.
"As anticipated, the Second Quarter was a tough one as we limited carloadings and increased expenses to recover network fluidity," said Lance Fritz, Union Pacific chairman, president, and chief executive officer. "We also experienced record high fuel prices and increasing inflation, adding pressure to our total costs. Offsetting the cost pressures were higher fuel surcharge revenue, solid core pricing, a positive mix, and continued train size initiatives. The result was operating revenue and income growth. Our network fluidity improved through the quarter, and we are positioned to grow volumes in the back half of 2022 while continuing to improve our service product."
Financial Results: Topline Growth Produces Quarterly Records for Operating Revenue, Operating Income, Net Income, and Earnings Per Share
Second Quarter 2022 Compared to Second Quarter 2021
Operating revenue of $6.3 billion was up 14% driven by higher fuel surcharge revenue, core pricing gains, and a positive business mix, offset slightly by volume declines.
Business volumes, as measured by total revenue carloads, were down 1%.
Union Pacific's 60.2% operating ratio deteriorated by 510 basis points. Higher fuel prices negatively impacted the operating ratio 130 basis points.
Operating income of $2.5 billion was up 1%.
The company repurchased 3.1 million shares in second quarter 2022 at an aggregate cost of $722 million.