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Union Pacific Reports First Quarter 2023 Results

General News
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Union Pacific Corporation (NYSE: UNP) today reported 2023 first quarter net income of $1.6 billion, or $2.67 per diluted share. These results include $107 million in other income from a one-time real estate transaction. This compares to 2022 first quarter net income of $1.6 billion, or $2.57 per diluted share.

“We delivered greater network fluidity and resiliency in the first quarter even as we faced a series of significant weather events,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “In addition to the impact of weather on carload volumes and costs, higher inflation also reduced our operating income and more than offset our record first quarter operating revenue. Despite a continued challenging environment, our strengthening service product, bolstered by a strong pipeline of new employees, gives us confidence we can capture available demand and improve efficiency the remainder of the year.”

Financial Results: Topline Growth Driven by Fuel Surcharge Revenue and Core Pricing Gains; Service Recovery, Inflation, and Weather Impact Cost Structure; First Quarter Records for Operating Revenue, Net Income, and Earnings Per Share

First Quarter 2023 Compared to First Quarter 2022

  • Operating revenue of $6.1 billion was up 3% driven by higher fuel surcharge revenue and core pricing gains, partially offset by a negative business mix and volume declines.
  • Business volumes, as measured by total revenue carloads, were down 1%.
  • Union Pacific’s 62.1% operating ratio deteriorated 270 basis points. Falling fuel prices in the quarter positively impacted the operating ratio by 190 basis points.
  • Operating income of $2.3 billion declined 3%.
  • The company repurchased 2.9 million shares in first quarter 2023 at an aggregate cost of $0.6 billion.

Operating Performance: Service and Efficiency Measures Impacted by Weather Events

First Quarter 2023 Compared to First Quarter 2022

  • Quarterly freight car velocity was 196 daily miles per car, a 1% decline.
  • Quarterly locomotive productivity was 123 gross ton-miles (GTMs) per horsepower day, a 5% decline.
  • Average maximum train length of 9,159 feet was flat.
  • Quarterly workforce productivity decreased 6% to 991 car miles per employee.
  • Fuel consumption rate of 1.123, measured in gallons of fuel per thousand GTMs, deteriorated 1%.
  • Union Pacific’s reportable derailment rate improved 10% to 2.21 per million train miles compared to 2.46 for 2022.

Maintaining 2023 Full Year Guidance

  • Carloads to exceed Industrial Production
    • Current Industrial Production forecast: -0.7%
  • Operating ratio improvement
  • Pricing dollars in excess of inflation dollars
  • Capital Allocation:
    • Capital spending less than 15% of revenue
      • Capital plan of $3.6 billion
    • Long term dividend payout target of ~45% of earnings
    • Excess cash to share repurchases

For the complete press release click here.

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


Clarissa Beyah – Media Contact – – (402) 957-4793

Source:  Union Pacific Corporation