OMAHA, Neb., Jan. 19, 2017 /PRNewswire/ -- Union Pacific
Corporation (NYSE: UNP) today reported 2016 fourth quarter net
income of $1.1 billion, or
$1.39 per diluted share compared to
$1.31 per diluted share, in the
fourth quarter 2015.
Fourth Quarter Results
- Diluted earnings per share of $1.39 increased 6 percent.
- Operating income totaled $2.0
billion, up 2 percent.
- Operating ratio of 62.0 percent, improved 1.2
points.
Full Year 2016 Results
- Diluted earnings per share of $5.07 declined 8 percent.
- Operating income totaled $7.3
billion, down 10 percent.
- Operating ratio of 63.5 percent, up 0.4 points.
"While full-year volumes were down substantially year over year,
we did see declines moderate in the fourth quarter," said
Lance Fritz, Union Pacific chairman,
president and chief executive officer. "As we worked through
the challenges of the year, we remained focused on the strategy we
live each day through our six value tracks. Executing on
these value tracks enables us to run a safe, efficient, and
productive railroad while providing our customers an excellent
value proposition."
Fourth Quarter Summary
Operating revenue of $5.2 billion
was down 1 percent in the fourth quarter 2016 compared to the
fourth quarter 2015. Fourth quarter business volumes, as
measured by total revenue carloads, declined 3 percent compared to
2015. While shipments of agricultural products grew 8
percent, volumes declined in the remaining five business
groups. In addition:
- Quarterly freight revenue decreased 1 percent compared to the
fourth quarter 2015, as volume declines and lower fuel surcharge
revenue more than offset core pricing gains.
- Union Pacific's 62.0 percent operating ratio improved 1.2
points compared to the fourth quarter 2015.
- The $1.65 per gallon average
quarterly diesel fuel price in the fourth quarter 2016 was 2
percent higher than the fourth quarter 2015.
- Quarterly train speed, as reported to the Association of
American Railroads, was 26.5 mph, 2 percent slower than the fourth
quarter 2015.
- The Company repurchased 9.6 million shares in the fourth
quarter 2016 at an aggregate cost of nearly $940 million.
Summary of Fourth Quarter Freight Revenues
- Agricultural Products up 7 percent
- Chemicals flat
- Intermodal flat
- Industrial Products down 2 percent
- Automotive down 6 percent
- Coal down 6 percent
2016 Full Year Summary
For the full year 2016, Union Pacific reported net income of
$4.2 billion or $5.07 per diluted share versus $4.8 billion or $5.49 per diluted share in 2015, representing 11
and 8 percent decreases, respectively. Operating revenue
totaled $19.9 billion as compared to
$21.8 billion in 2015.
Operating income totaled $7.3
billion, a 10 percent decrease compared to 2015. In
addition:
- Freight revenue totaled $18.6
billion, a 9 percent decrease when compared to 2015.
Carloadings were down 7 percent versus 2015, with declines in the
chemicals, coal, industrial products and intermodal business
groups.
- Average diesel fuel prices decreased 20 percent to $1.48 per gallon in 2016 from $1.84 per gallon in 2015.
- Union Pacific's operating ratio increased to 63.5 percent, 0.4
points higher than the full-year record set in 2015.
- Train speed, as reported to the Association of American
Railroads, was 26.6 mph, 5 percent faster compared to the full year
2015.
- Union Pacific's reportable personal injury rate of 0.75
incidents per 200,000 employee hours was a full-year record,
improving 14 percent compared to 2015.
- Union Pacific's capital program in 2016 totaled just under
$3.5 billion, a decrease of
approximately $800 million compared
to the full year 2015.
- The Company repurchased 35.1 million shares in 2016 at an
aggregate cost of $3.1 billion.
2017 Outlook
"Looking to 2017, we are fairly optimistic about some of the
macro-economic indicators that drive our core business.
Higher energy prices, favorable agricultural markets and improving
business and consumer confidence all support a return to positive
volume growth this year," Fritz said. "We continue to have
confidence in the strength and diversity of the Union Pacific
franchise, which will position us well to safely and efficiently
leverage stronger volumes as our markets begin to rebound. We
will continue to execute on our strategic value tracks to provide
our customers an excellent service experience while generating
strong returns for our shareholders."
Fourth Quarter 2016 Earnings Conference Call
Union Pacific will host its fourth quarter 2016 earnings release
presentation live over the Internet and via teleconference on
Thursday, January 19, 2017 at
8:45 a.m. Eastern Time. The
presentation will be webcast live over the internet on Union
Pacific's website at www.up.com/investor. Alternatively, the
webcast can be accessed directly through the following link.
Participants may join the conference call by dialing 877/407-8293
(or for international participants, 201/689-8349).
ABOUT UNION PACIFIC
Union Pacific Railroad is the principal operating company of
Union Pacific Corporation (NYSE: UNP). One of America's most
recognized companies, Union Pacific Railroad connects 23 states in
the western two-thirds of the country by rail, providing a critical
link in the global supply chain. From 2007-2016, Union Pacific
invested approximately $34 billion in
its network and operations to support America's transportation
infrastructure. The railroad's diversified business mix
includes Agricultural Products, Automotive, Chemicals, Coal,
Industrial Products and Intermodal. Union Pacific serves many of
the fastest-growing U.S. population centers, operates from all
major West Coast and Gulf Coast ports to eastern gateways, connects
with Canada's rail systems and is
the only railroad serving all six major Mexico gateways. Union Pacific provides value
to its roughly 10,000 customers by delivering products in a safe,
reliable, fuel-efficient and environmentally responsible
manner.
Supplemental financial information is attached.
This presentation 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 generate financial returns, improve network
performance and customer service; implementation of corporate
strategies; and providing excellent service to its customers and
returns to its shareholders. These statements are, or will
be, forward-looking statements as defined by the Securities Act of
1933 and 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 2015, which was filed with the SEC on February 5, 2016. 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.
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Income (unaudited)
|
|
Millions,
Except Per Share Amounts and Percentages,
|
4th
Quarter
|
|
Full
Year
|
For the Periods
Ended December 31,
|
2016
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,832
|
$
|
4,863
|
(1)
|
%
|
|
$
|
18,601
|
$
|
20,397
|
(9)
|
%
|
Other
revenues
|
|
336
|
|
345
|
(3)
|
|
|
|
1,340
|
|
1,416
|
(5)
|
|
Total operating
revenues
|
|
5,168
|
|
5,208
|
(1)
|
|
|
|
19,941
|
|
21,813
|
(9)
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,186
|
|
1,220
|
(3)
|
|
|
|
4,750
|
|
5,161
|
(8)
|
|
Purchased services and
materials
|
|
553
|
|
589
|
(6)
|
|
|
|
2,258
|
|
2,421
|
(7)
|
|
Depreciation
|
|
520
|
|
517
|
1
|
|
|
|
2,038
|
|
2,012
|
1
|
|
Fuel
|
|
431
|
|
424
|
2
|
|
|
|
1,489
|
|
2,013
|
(26)
|
|
Equipment and other
rents
|
|
280
|
|
305
|
(8)
|
|
|
|
1,137
|
|
1,230
|
(8)
|
|
Other
|
|
233
|
|
235
|
(1)
|
|
|
|
997
|
|
924
|
8
|
|
Total operating
expenses
|
|
3,203
|
|
3,290
|
(3)
|
|
|
|
12,669
|
|
13,761
|
(8)
|
|
Operating
Income
|
|
1,965
|
|
1,918
|
2
|
|
|
|
7,272
|
|
8,052
|
(10)
|
|
Other
income
|
|
40
|
|
28
|
43
|
|
|
|
192
|
|
226
|
(15)
|
|
Interest
expense
|
|
(174)
|
|
(164)
|
6
|
|
|
|
(698)
|
|
(622)
|
12
|
|
Income before
income taxes
|
|
1,831
|
|
1,782
|
3
|
|
|
|
6,766
|
|
7,656
|
(12)
|
|
Income
taxes
|
|
(687)
|
|
(665)
|
3
|
|
|
|
(2,533)
|
|
(2,884)
|
(12)
|
|
Net
Income
|
$
|
1,144
|
$
|
1,117
|
2
|
%
|
|
$
|
4,233
|
$
|
4,772
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
1.40
|
$
|
1.31
|
7
|
%
|
|
$
|
5.09
|
$
|
5.51
|
(8)
|
%
|
Earnings per share -
diluted
|
$
|
1.39
|
$
|
1.31
|
6
|
|
|
$
|
5.07
|
$
|
5.49
|
(8)
|
|
Weighted average
number of shares - basic
|
|
819.2
|
|
850.6
|
(4)
|
|
|
|
832.4
|
|
866.2
|
(4)
|
|
Weighted average
number of shares - diluted
|
|
822.7
|
|
853.7
|
(4)
|
|
|
|
835.4
|
|
869.4
|
(4)
|
|
Dividends declared per
share
|
$
|
0.605
|
$
|
0.55
|
10
|
|
|
$
|
2.255
|
$
|
2.20
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
62.0%
|
|
63.2%
|
(1.2)
|
pts
|
|
|
63.5%
|
|
63.1%
|
0.4
|
pts
|
Effective
Tax Rate
|
|
37.5%
|
|
37.3%
|
0.2
|
pts
|
|
|
37.4%
|
|
37.7%
|
(0.3)
|
pts
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
4th
Quarter
|
|
Full
Year
|
For the Periods
Ended December 31,
|
2016
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
961
|
$
|
895
|
7
|
%
|
|
$
|
3,625
|
$
|
3,581
|
1
|
%
|
Automotive
|
|
517
|
|
549
|
(6)
|
|
|
|
2,000
|
|
2,154
|
(7)
|
|
Chemicals
|
|
857
|
|
859
|
-
|
|
|
|
3,474
|
|
3,543
|
(2)
|
|
Coal
|
|
699
|
|
745
|
(6)
|
|
|
|
2,440
|
|
3,237
|
(25)
|
|
Industrial
Products
|
|
829
|
|
842
|
(2)
|
|
|
|
3,348
|
|
3,808
|
(12)
|
|
Intermodal
|
|
969
|
|
973
|
-
|
|
|
|
3,714
|
|
4,074
|
(9)
|
|
Total
|
$
|
4,832
|
$
|
4,863
|
(1)
|
%
|
|
$
|
18,601
|
$
|
20,397
|
(9)
|
%
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
|
258
|
|
239
|
8
|
%
|
|
|
980
|
|
941
|
4
|
%
|
Automotive
|
|
219
|
|
225
|
(3)
|
|
|
|
863
|
|
863
|
-
|
|
Chemicals
|
|
257
|
|
270
|
(5)
|
|
|
|
1,074
|
|
1,098
|
(2)
|
|
Coal
|
|
320
|
|
353
|
(9)
|
|
|
|
1,166
|
|
1,459
|
(20)
|
|
Industrial
Products
|
|
265
|
|
280
|
(5)
|
|
|
|
1,097
|
|
1,213
|
(10)
|
|
Intermodal*
|
|
827
|
|
836
|
(1)
|
|
|
|
3,262
|
|
3,488
|
(6)
|
|
Total
|
|
2,146
|
|
2,203
|
(3)
|
%
|
|
|
8,442
|
|
9,062
|
(7)
|
%
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,732
|
$
|
3,745
|
-
|
%
|
|
$
|
3,702
|
$
|
3,805
|
(3)
|
%
|
Automotive
|
|
2,362
|
|
2,447
|
(3)
|
|
|
|
2,317
|
|
2,498
|
(7)
|
|
Chemicals
|
|
3,323
|
|
3,188
|
4
|
|
|
|
3,234
|
|
3,227
|
-
|
|
Coal
|
|
2,183
|
|
2,107
|
4
|
|
|
|
2,092
|
|
2,218
|
(6)
|
|
Industrial
Products
|
|
3,123
|
|
3,004
|
4
|
|
|
|
3,051
|
|
3,139
|
(3)
|
|
Intermodal*
|
|
1,172
|
|
1,165
|
1
|
|
|
|
1,138
|
|
1,168
|
(3)
|
|
Average
|
$
|
2,251
|
$
|
2,208
|
2
|
%
|
|
$
|
2,203
|
$
|
2,251
|
(2)
|
%
|
*
|
Each intermodal
container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Financial Position
(unaudited)
|
|
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,277
|
$
|
1,391
|
Short-term
investments
|
|
60
|
|
-
|
Other current
assets
|
|
2,259
|
|
2,739
|
Investments
|
|
1,457
|
|
1,410
|
Net
properties
|
|
50,389
|
|
48,866
|
Other
assets
|
|
276
|
|
194
|
Total
assets
|
$
|
55,718
|
$
|
54,600
|
|
|
|
|
|
Liabilities
and Common Shareholders' Equity
|
|
|
|
|
Debt due within one
year
|
$
|
758
|
$
|
594
|
Other current
liabilities
|
|
2,882
|
|
2,612
|
Debt due after one
year
|
|
14,249
|
|
13,607
|
Deferred income
taxes
|
|
15,996
|
|
15,241
|
Other long-term
liabilities
|
|
1,901
|
|
1,844
|
Total
liabilities
|
|
35,786
|
|
33,898
|
Total common
shareholders' equity
|
|
19,932
|
|
20,702
|
Total
liabilities and common shareholders' equity
|
$
|
55,718
|
$
|
54,600
|
|
|
|
|
|
Debt to
Capital
|
|
43.0%
|
|
40.7%
|
Adjusted
Debt to Capital*
|
|
47.3%
|
|
45.7%
|
Return on
Invested Capital*
|
|
12.7%
|
|
14.3%
|
|
|
*
|
Adjusted Debt to
Capital and Return on Invested Capital are non-GAAP measures;
however, management believes that they are important measures in
evaluating our financial performance. See pages 8 and 9 for a
reconciliation to GAAP.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Cash Flows (unaudited)
|
|
|
|
|
|
Millions,
|
Full
Year
|
For the
Periods Ended December 31,
|
2016
|
2015
|
Operating
Activities
|
|
|
|
|
Net income
|
$
|
4,233
|
$
|
4,772
|
Depreciation
|
|
2,038
|
|
2,012
|
Deferred income
taxes
|
|
831
|
|
765
|
Other - net
|
|
423
|
|
(205)
|
Cash provided
by operating activities
|
|
7,525
|
|
7,344
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Capital
investments*
|
|
(3,505)
|
|
(4,650)
|
Other - net
|
|
112
|
|
174
|
Cash used in
investing activities
|
|
(3,393)
|
|
(4,476)
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Common shares
repurchased
|
|
(3,105)
|
|
(3,465)
|
Debt issued
|
|
1,983
|
|
3,328
|
Dividends
paid**
|
|
(1,879)
|
|
(2,344)
|
Debt repaid
|
|
(1,013)
|
|
(556)
|
Debt
exchange
|
|
(191)
|
|
-
|
Other - net
|
|
(41)
|
|
(26)
|
Cash used in
financing activities
|
|
(4,246)
|
|
(3,063)
|
|
|
|
|
|
Net Change
in Cash and Cash Equivalents
|
|
(114)
|
|
(195)
|
Cash and cash
equivalents at beginning of year
|
|
1,391
|
|
1,586
|
Cash and
Cash Equivalents at End of Year
|
$
|
1,277
|
$
|
1,391
|
|
|
|
|
|
Free Cash
Flow***
|
|
|
|
|
Cash provided by
operating activities
|
$
|
7,525
|
$
|
7,344
|
Cash used in investing
activities
|
|
(3,393)
|
|
(4,476)
|
Dividends
paid**
|
|
(1,879)
|
|
(2,344)
|
Free cash
flow
|
$
|
2,253
|
$
|
524
|
|
|
*
|
Capital investments
include locomotive and freight car early lease buyouts of $90
million in 2016 and $327 million in 2015.
|
|
|
**
|
The 2015 dividends
paid amount includes the fourth quarter 2014 dividend of $438
million, which was paid on January 2, 2015, the first quarter 2015
dividend of $484 million, which was paid on March 30, 2015, the
second quarter 2015 dividend of $479 million, which was paid on
June 30, 2015, the third quarter 2015 dividend of $476 million,
which was paid on September 30, 2015, as well as the fourth quarter
2015 dividend of $467 million, which was paid on December 30, 2015.
Beginning in 2015, the timing of the dividend declaration and
payable dates was aligned to occur within the same
quarter.
|
|
|
***
|
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.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Operating and
Performance Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Full
Year
|
For the Periods
Ended December 31,
|
2016
|
2015
|
%
|
|
|
2016
|
2015
|
%
|
|
Operating/Performance
Statistics
|
|
|
|
|
|
|
|
|
|
Gross ton-miles (GTMs)
(millions)
|
223,839
|
224,855
|
-
|
%
|
|
856,895
|
927,677
|
(8)
|
%
|
Employees
(average)
|
42,214
|
44,490
|
(5)
|
|
|
42,919
|
47,457
|
(10)
|
|
GTMs (millions) per
employee
|
5.30
|
5.05
|
5
|
|
|
19.97
|
19.55
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Locomotive
Fuel Statistics
|
|
|
|
|
|
|
|
|
|
Average fuel price per
gallon consumed
|
$
1.65
|
$
1.61
|
2
|
%
|
|
$
1.48
|
$
1.84
|
(20)
|
%
|
Fuel consumed in
gallons (millions)
|
253
|
257
|
(2)
|
|
|
974
|
1,064
|
(8)
|
|
Fuel consumption
rate*
|
1.131
|
1.143
|
(1)
|
|
|
1.137
|
1.147
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
AAR Reported
Performance Measures
|
|
|
|
|
|
|
|
|
|
Average train speed
(miles per hour)
|
26.5
|
27.0
|
(2)
|
%
|
|
26.6
|
25.4
|
5
|
%
|
Average terminal dwell
time (hours)
|
29.0
|
29.4
|
(1)
|
|
|
28.1
|
29.3
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Ton-Miles (Millions)
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
24,153
|
22,695
|
6
|
%
|
|
92,244
|
89,053
|
4
|
%
|
Automotive
|
4,705
|
4,704
|
-
|
|
|
18,192
|
18,193
|
-
|
|
Chemicals
|
16,132
|
17,124
|
(6)
|
|
|
66,964
|
71,707
|
(7)
|
|
Coal
|
33,487
|
35,953
|
(7)
|
|
|
117,101
|
151,110
|
(23)
|
|
Industrial
Products
|
17,082
|
17,120
|
-
|
|
|
68,579
|
75,902
|
(10)
|
|
Intermodal
|
19,559
|
19,122
|
2
|
|
|
77,059
|
79,070
|
(3)
|
|
Total
|
115,118
|
116,718
|
(1)
|
%
|
|
440,139
|
485,035
|
(9)
|
%
|
|
|
*
|
Fuel consumption is
computed as follows: gallons of fuel consumed divided by gross
ton-miles in thousands.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Condensed
Consolidated Statements of Income (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
Millions,
Except Per Share Amounts and Percentages,
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Freight
revenues
|
$
|
4,502
|
$
|
4,430
|
$
|
4,837
|
$
|
4,832
|
$
|
18,601
|
Other
revenues
|
|
327
|
|
340
|
|
337
|
|
336
|
|
1,340
|
Total operating
revenues
|
|
4,829
|
|
4,770
|
|
5,174
|
|
5,168
|
|
19,941
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
1,213
|
|
1,160
|
|
1,191
|
|
1,186
|
|
4,750
|
Purchased services and
materials
|
|
569
|
|
570
|
|
566
|
|
553
|
|
2,258
|
Depreciation
|
|
502
|
|
504
|
|
512
|
|
520
|
|
2,038
|
Fuel
|
|
320
|
|
346
|
|
392
|
|
431
|
|
1,489
|
Equipment and other
rents
|
|
289
|
|
286
|
|
282
|
|
280
|
|
1,137
|
Other
|
|
249
|
|
244
|
|
271
|
|
233
|
|
997
|
Total operating
expenses
|
|
3,142
|
|
3,110
|
|
3,214
|
|
3,203
|
|
12,669
|
Operating
Income
|
|
1,687
|
|
1,660
|
|
1,960
|
|
1,965
|
|
7,272
|
Other
income
|
|
46
|
|
77
|
|
29
|
|
40
|
|
192
|
Interest
expense
|
|
(167)
|
|
(173)
|
|
(184)
|
|
(174)
|
|
(698)
|
Income before
income taxes
|
|
1,566
|
|
1,564
|
|
1,805
|
|
1,831
|
|
6,766
|
Income
taxes
|
|
(587)
|
|
(585)
|
|
(674)
|
|
(687)
|
|
(2,533)
|
Net
Income
|
$
|
979
|
$
|
979
|
$
|
1,131
|
$
|
1,144
|
$
|
4,233
|
|
|
|
|
|
|
|
|
|
|
|
Share and
Per Share
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
1.16
|
$
|
1.17
|
$
|
1.36
|
$
|
1.40
|
$
|
5.09
|
Earnings per share -
diluted
|
$
|
1.16
|
$
|
1.17
|
$
|
1.36
|
$
|
1.39
|
$
|
5.07
|
Weighted average
number of shares - basic
|
|
844.0
|
|
837.4
|
|
829.0
|
|
819.2
|
|
832.4
|
Weighted average
number of shares - diluted
|
|
846.7
|
|
840.1
|
|
832.2
|
|
822.7
|
|
835.4
|
Dividends declared per
share
|
$
|
0.55
|
$
|
0.55
|
$
|
0.55
|
$
|
0.605
|
$
|
2.255
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio
|
|
65.1%
|
|
65.2%
|
|
62.1%
|
|
62.0%
|
|
63.5%
|
Effective
Tax Rate
|
|
37.5%
|
|
37.4%
|
|
37.3%
|
|
37.5%
|
|
37.4%
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Freight Revenues
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
1st
Qtr
|
2nd
Qtr
|
3rd
Qtr
|
4th
Qtr
|
Full
Year
|
Freight
Revenues (Millions)
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
882
|
$
|
845
|
$
|
937
|
$
|
961
|
$
|
3,625
|
Automotive
|
|
510
|
|
488
|
|
485
|
|
517
|
|
2,000
|
Chemicals
|
|
878
|
|
864
|
|
875
|
|
857
|
|
3,474
|
Coal
|
|
519
|
|
494
|
|
728
|
|
699
|
|
2,440
|
Industrial
Products
|
|
834
|
|
830
|
|
855
|
|
829
|
|
3,348
|
Intermodal
|
|
879
|
|
909
|
|
957
|
|
969
|
|
3,714
|
Total
|
$
|
4,502
|
$
|
4,430
|
$
|
4,837
|
$
|
4,832
|
$
|
18,601
|
Revenue
Carloads (Thousands)
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
|
235
|
|
229
|
|
258
|
|
258
|
|
980
|
Automotive
|
|
217
|
|
217
|
|
210
|
|
219
|
|
863
|
Chemicals
|
|
268
|
|
275
|
|
274
|
|
257
|
|
1,074
|
Coal
|
|
262
|
|
243
|
|
341
|
|
320
|
|
1,166
|
Industrial
Products
|
|
274
|
|
275
|
|
283
|
|
265
|
|
1,097
|
Intermodal*
|
|
788
|
|
809
|
|
838
|
|
827
|
|
3,262
|
Total
|
|
2,044
|
|
2,048
|
|
2,204
|
|
2,146
|
|
8,442
|
Average
Revenue per Car
|
|
|
|
|
|
|
|
|
|
|
Agricultural
Products
|
$
|
3,749
|
$
|
3,692
|
$
|
3,637
|
$
|
3,732
|
$
|
3,702
|
Automotive
|
|
2,350
|
|
2,247
|
|
2,310
|
|
2,362
|
|
2,317
|
Chemicals
|
|
3,272
|
|
3,146
|
|
3,201
|
|
3,323
|
|
3,234
|
Coal
|
|
1,985
|
|
2,026
|
|
2,134
|
|
2,183
|
|
2,092
|
Industrial
Products
|
|
3,041
|
|
3,025
|
|
3,019
|
|
3,123
|
|
3,051
|
Intermodal*
|
|
1,116
|
|
1,124
|
|
1,141
|
|
1,172
|
|
1,138
|
Average
|
$
|
2,202
|
$
|
2,163
|
$
|
2,195
|
$
|
2,251
|
$
|
2,203
|
|
|
*
|
Each intermodal
container or trailer equals one carload.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures
Reconciliation to GAAP
|
|
|
|
|
|
|
|
|
|
Debt to
Capital*
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Debt
(a)
|
$
|
15,007
|
$
|
14,201
|
Equity
|
|
19,932
|
|
20,702
|
Capital
(b)
|
$
|
34,939
|
$
|
34,903
|
Debt to capital
(a/b)
|
|
43.0%
|
|
40.7%
|
|
|
*
|
Total debt divided by
total debt plus equity. We believe this measure is important to
management and investors in evaluating our balance sheet strength
and is important in managing our credit ratios and financing
relationships.
|
|
|
|
|
|
Adjusted
Debt to Capital, Reconciliation to GAAP*
|
|
|
|
|
|
Dec.
31,
|
Dec.
31,
|
Millions,
Except Percentages
|
2016
|
2015
|
Debt
|
$
|
15,007
|
$
|
14,201
|
Net present
value of operating leases
|
|
2,435
|
|
2,726
|
Unfunded
pension and OPEB, net of taxes of $261 and $280
|
|
436
|
|
463
|
Adjusted debt
(a)
|
|
17,878
|
|
17,390
|
Equity
|
|
19,932
|
|
20,702
|
Adjusted
capital (b)
|
$
|
37,810
|
$
|
38,092
|
Adjusted debt
to capital (a/b)
|
|
47.3%
|
|
45.7%
|
|
|
*
|
Total debt plus net
present value of operating leases plus after-tax unfunded pension
and OPEB obligation divided by total debt plus net present value of
operating leases plus after-tax unfunded pension and OPEB
obligation plus equity. Operating leases were discounted using 4.7%
at December 31, 2016, and 4.8% at December 31, 2015. The discount
rate reflects our effective interest rate. We believe this measure
is important to management and investors in evaluating the total
amount of leverage in our capital structure including off-balance
sheet lease obligations.
|
UNION PACIFIC
CORPORATION AND SUBSIDIARY COMPANIES Non-GAAP Measures
Reconciliation to GAAP
|
|
|
|
|
|
|
|
Return on
Invested Capital as Adjusted (ROIC)*
|
|
|
|
|
|
|
|
|
|
|
Millions,
Except Percentages
|
2016
|
2015
|
2014
|
Net
income
|
$
|
4,233
|
$
|
4,772
|
$
|
5,180
|
Interest
expense
|
|
698
|
|
622
|
|
561
|
Interest on
average present value of operating leases
|
|
121
|
|
135
|
|
158
|
Taxes on
interest
|
|
(306)
|
|
(285)
|
|
(273)
|
Net operating
profit after taxes as adjusted (a)
|
$
|
4,746
|
$
|
5,244
|
$
|
5,626
|
Average
equity
|
$
|
20,317
|
$
|
20,946
|
$
|
21,207
|
Average
debt
|
|
14,604
|
|
12,807
|
|
10,469
|
Average present
value of operating leases
|
|
2,581
|
|
2,814
|
|
2,980
|
Average
invested capital as adjusted (b)
|
$
|
37,502
|
$
|
36,567
|
$
|
34,656
|
Return on
invested capital as adjusted (a/b)
|
|
12.7%
|
|
14.3%
|
|
16.2%
|
|
|
*
|
ROIC is 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 this measure is important
to management and investors in evaluating the efficiency and
effectiveness of the Corporation's long-term capital investments,
and we currently use ROIC as a performance criteria in determining
certain elements of equity compensation for our executives. ROIC
should be considered in addition to, rather than as a substitute
for, other information provided in accordance with GAAP. The most
comparable GAAP measure is Return on Average Common Shareholders'
Equity.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/union-pacific-reports-fourth-quarter-and-full-year-2016-results-300393336.html
SOURCE Union Pacific Corporation