OMAHA, Neb. — Union Pacific Corp. reported 2010 first quarter net income of $516 million, or $1.01 per diluted share, compared to $362 million, or $0.72 per diluted share in the first quarter 2009.
“Union Pacific’s record first quarter was a strong start for the year,” said Jim Young, Union Pacific chairman and chief executive officer. “We saw quarterly volume growth on our railroad for the first time in two years, and we leveraged that volume by running a safe, service-focused, and efficient network. These efforts resulted in a best ever first quarter operating ratio and generated strong cash from operations, setting a solid foundation for future opportunity and growth.”
First quarter business volumes, as measured by total revenue carloads, grew 13 percent versus the prior year’s recession-impacted levels. Five of Union Pacific’s six business groups reported quarterly growth, with only Energy volumes declining versus first quarter 2009. Quarterly volume growth contributed to a 16 percent increase in first quarter 2010 operating revenues of $4.0 billion versus $3.4 billion in the first quarter 2009. In addition:
- Year-over-year freight revenues increased in all six business groups, up 16 percent in total to $3.8 billion in the first quarter 2010 as a result of double-digit volume gains, increased fuel cost recoveries associated with higher diesel fuel prices, and core pricing gains.
- Quarterly diesel fuel prices increased 43 percent from an average of $1.51 per gallon in the first quarter 2009 to an average of $2.16 per gallon.
- Union Pacific’s operating ratio improved to 75.1 percent from 80.4 percent in 2009, setting a first quarter record as strong volume growth coupled with ongoing efficiency initiatives and pricing gains drove margin expansion.
- The Company’s Customer Satisfaction Index of 87 tied 2009’s first quarter best.
- Quarterly train speed, as reported to the Association of American Railroads, was 26.2 mph, down 4 percent versus record first quarter 2009 velocity. Rail car inventory declined 3 percent in the first quarter of 2010 as improved freight car utilization allowed the Company to handle increased business levels with fewer freight car resources.
- First quarter results include the impact of a $45 million one-time payment to CSXI as part of the transaction to restructure our intermodal transportation relationship.