2023-07-26 07:51:43 ET
- Union Pacific press release ( NYSE: UNP ): Q2 GAAP EPS of $2.57 misses by $0.20 .
- Revenue of $5.96B (-4.9% Y/Y) misses by $160M .
- Operating revenue of $6 billion was down 5% driven by reduced fuel surcharge revenue, lower volumes, and an unfavorable business mix, partially offset by core pricing gains.
- Business volumes, as measured by total revenue carloads, were down 2%.
- Operating ratio was 63.0%, up 280 basis points. This includes an unfavorable 110 basis point impact from a one-time labor agreement payment and a 200 basis point benefit from falling fuel prices.
- Reportable derailment rate improved 9%
- Quarterly freight car velocity was 202 daily miles per car, an 8% improvement.
- Quarterly locomotive productivity was 126 gross ton-miles (GTMs) per horsepower day, a 2% improvement.
- Average maximum train length was 9,316 feet, a 1% decline.
- Quarterly workforce productivity decreased 5% to 983 car miles per employee.
- Fuel consumption rate of 1.086, measured in gallons of fuel per thousand GTMs, deteriorated 1%.
- Union Pacific's first half reportable derailment rate improved 9% to 2.45 per million train miles compared to 2.68 for 2022.
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2023 Outlook Pressured by Challenging Demand and Cost Environment
- Consumer-related volumes likely drive full year volume expectations below Industrial Production (Current forecast: +0.1%)
- Pricing dollars in excess of inflation dollars
- Forecasting $50 to $70 million in labor expense from new agreements in second half of 2023
- 2023 Capital Allocation:
- Capital plan of $3.6 billion
- Maintain dividend of $1.30/quarter
- No further 2023 share repurchases planned
For further details see:
Union Pacific GAAP EPS of $2.57 misses by $0.20, revenue of $5.96B misses by $160M