Union Pacific Corp. Reports Operating Results (10-K)

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Feb 04, 2011
Union Pacific Corp. (UNP, Financial) filed Annual Report for the period ended 2010-12-31.

Union Pac Corp has a market cap of $46.16 billion; its shares were traded at around $93.6 with a P/E ratio of 16.9 and P/S ratio of 2.8. The dividend yield of Union Pac Corp stocks is 1.6%. Union Pac Corp had an annual average earning growth of 3.3% over the past 10 years.Hedge Fund Gurus that owns UNP: Chris Shumway of Shumway Capital Partners LLC, Bruce Kovner of Caxton Associates, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns UNP: David Williams of Columbia Value and Restructuring Fund, Tweedy Browne of Tweedy Browne CO LLC, NWQ Managers of NWQ Investment Management Co, Ken Heebner of Capital Growth Management LP, Richard Aster Jr of Meridian Fund, PRIMECAP Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, John Buckingham of Al Frank Asset Management, Inc., Pioneer Investments, John Keeley of Keeley Fund Management, Dodge & Cox, Jeremy Grantham of GMO LLC, Murray Stahl of Horizon Asset Management, Bill Frels of Mairs & Power Inc. , Chuck Royce of Royce& Associates.

Highlight of Business Operations:

2011 Capital Expenditures In 2011, we expect to make capital investments of approximately $3.2 billion, including expenditures for PTC of approximately $250 million. We may revise our 2011 capital plan if business conditions warrant or if new laws or regulations affect our ability to generate sufficient returns on these investments. (See discussion of our 2011 capital plan in Managements Discussion and Analysis of Financial Condition and Results of Operations 2011 Outlook, Item 7.)

Equipment Encumbrance Equipment with a carrying value of approximately $3.2 billion and $3.4 billion at December 31, 2010 and 2009, respectively, served as collateral for capital leases and other types of equipment obligations in accordance with the secured financing arrangements utilized to acquire such railroad equipment.

As we reported in our Annual Report on Form 10-K for 2005, the Environmental Protection Agency (EPA) considers the Railroad a potentially responsible party for the Omaha Lead Site. The Omaha Lead Site consists of approximately 25 square miles of residential property in the eastern part of Omaha, Nebraska, allegedly impacted by air emissions from two former lead smelters/refineries. One refinery was operated by ASARCO. The EPA identified the Railroad as a potentially responsible party because more than 60 years ago the Railroad owned land that was leased to ASARCO. The Railroad disputes both the legal and technical basis of the EPAs allegations. It has nonetheless engaged in extensive negotiations with the EPA. The EPA issued a Unilateral Administrative Order with an effective date of December 16, 2005, directing the Railroad to implement an interim remedy at the site at an estimated cost of $50 million. Failure to comply with the order without just cause could subject the Railroad to penalties of up to $37,500 per day and triple the EPAs costs in performing the work. The Railroad believes it has just cause not to comply with the order, but it offered to perform some of the work specified in the order as a compromise. On August 5, 2009, the Railroad received a Special Notice Letter from EPA directing UPRR

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