Union Pacific Reports First Quarter 2016 Results

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Union Pacific Reports First Quarter 2016 Results

First Quarter Operating Ratio of 65.1 percent

OMAHA, NEB., APRIL 21, 2016
Union Pacific Corporation (NYSE: UNP) today reported 2016 first quarter net income of nearly $1.0 billion, or $1.16 per diluted share compared to about $1.2 billion, or $1.30 per diluted share, in the first quarter 2015.
First Quarter Results

• Diluted earnings per share of $1.16 declined 11 percent.
• Operating income totaled $1.7 billion, down 15 percent.
• Operating ratio of 65.1 percent, up 0.3 points.

"In this challenging volume environment, we have continued our intense focus on operating safely and efficiently, managing our resources, and improving our customer experience," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "As a result, the quarterly operating ratio came in at 65.1 percent, up only 0.3 points from last year, as solid core pricing and productivity improvements helped to offset an 8 percent decline in total volumes."

First Quarter Summary
Operating revenue of $4.8 billion was down 14 percent in the first quarter 2016 compared to the first quarter 2015. First quarter business volumes, as measured by total revenue carloads, declined 8 percent compared to 2015. Volume declines in coal, industrial products, agricultural products, and intermodal more than offset growth in automotive. Chemicals volume was flat compared to 2015 as declines in crude oil and fertilizer carloads offset growth in other chemicals shipments. In addition:

• Quarterly freight revenue decreased 14 percent compared to the first quarter 2015, as volume declines, lower fuel surcharge revenue, and negative business mix more than offset core pricing gains.
• Union Pacific's 65.1 percent operating ratio was unfavorable by 0.3 points compared to the first quarter 2015. The net impact of lower fuel prices during the quarter negatively impacted the operating ratio by about 0.5 points.
• The $1.25 per gallon average quarterly diesel fuel price in the first quarter 2016 was 36 percent lower than the first quarter 2015.
• Quarterly train speed, as reported to the Association of American Railroads, was 27.3 mph, 11 percent faster than the first quarter 2015.
• Union Pacific's reportable personal injury rate of 0.75 per 200,000 employee-hours was a first quarter record, improving 12 percent compared to the first quarter 2015.
• The Company repurchased 9.3 million shares in the first quarter 2016 at an aggregate cost of $713 million.

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