Union Pacific Corp. (NYSE:UNP) filed Quarterly Report for the period ended 2012-03-31.
Union Pac Corp has a market cap of $51.72 billion; its shares were traded at around $105.68 with a P/E ratio of 16.1 and P/S ratio of 2.6. The dividend yield of Union Pac Corp stocks is 2.2%. Union Pac Corp had an annual average earning growth of 8.5% over the past 10 years.
Highlight of Business Operations:We reported earnings of $1.79 per diluted share on net income of $863 million in the first quarter of 2012 compared to earnings of $1.29 per diluted share on net income of $639 million for the first quarter of 2011. Freight revenues increased $575 million in the first quarter compared to the same period of 2011 driven by core pricing gains, higher fuel surcharges and volume growth. The diversity of our franchise led to 1% carload growth despite declines in two of our six commodity groups compared to first quarter of 2011. Increases in automotive, crude oil and frac sand shipments more than offset the lower volume in energy, agricultural products and international intermodal. These volume increases and core pricing gains, coupled with continued cost controls, generated record earnings in the first quarter of 2012.
Automotive Shipments of finished vehicles and automotive parts in the first quarter of 2012 increased 16% and 12%, respectively. Core pricing gains and fuel surcharges also improved automotive freight revenue from 2011 levels. Higher production and sales levels during the quarter drove the volume growth.
Energy Core pricing gains and higher fuel surcharges (including improved fuel recovery provisions) partially offset by lower volume, increased freight revenue from energy shipments in the first quarter of 2012 compared to the same period in 2011. Shipments of coal from the Southern Powder River Basin (SPRB) and Colorado and Utah mines decreased 9% and 3%, respectively, from the first quarter of 2011. Volume continued to decline throughout the quarter as coal stockpiles increased due to the unseasonably warm weather and low natural gas prices, which caused some displacement of coal in electricity production. In addition, the loss of two contracts also added to the decline.
Intermodal Higher fuel surcharges (including improved fuel recovery provisions implemented in 2011), core pricing gains and volume growth increased freight revenue from intermodal shipments in the first quarter of 2012 compared to the same period in 2011. Volume from domestic traffic increased 6% from 2011 levels, with continued conversion from truck to rail. International shipments were down 3% reflecting weaker West Coast imports and the loss of a customer contract in May 2011, partially offsetting the domestic gains.
Gross and Revenue Ton-Miles Gross ton-miles are calculated by multiplying the weight of loaded and empty freight cars by the number of miles hauled. Revenue ton-miles are calculated by multiplying the weight of freight by the number of tariff miles. Gross ton-miles increased 2% in the first quarter of 2012 compared to the same period in 2011, while revenue ton-miles remained flat, and carloads increased 1%. Commodity mix changes drove the variance in year-over-year growth between gross ton-miles, revenue ton-miles and carloads.
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