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Thu Apr 18, 2013, 12:23 PM

Union Pacific reports record first quarter

Source: Omaha World Herald

By Emily Nohr

Despite continued weak coal and grain markets, Union Pacific posted a record first quarter, the Omaha-based railroad said Thursday.

The company’s first quarter profit was $957 million, or $2.03 per diluted share, up 11 percent from $863 million, or $1.79 per diluted share, this time last year.

“Union Pacific achieved record first quarter financial results, leveraging the strengths of our diverse franchise despite significantly weaker coal and grain markets,” said CEO Jack Koraleski. “We efficiently managed our operations in the face of dynamic volume shifts across the network, as evidenced by our record first quarter operating ratio and customer satisfaction results.”

Overall business volume was down 2 percent, with coal down 6 percent and agricultural down 9 percent. Those declines were offset by chemicals up 14 percent, automotive up 13 percent, intermodal up 9 percent and industrial products up 6 percent.

FULL story at link.



Read more: http://www.omaha.com/article/20130418/MONEY/704189859/1707#union-pacific-reports-record-first-quarter

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Reply Union Pacific reports record first quarter (Original post)
Omaha Steve Apr 2013 OP
TwilightGardener Apr 2013 #1
denbot Apr 2013 #2
mainer Apr 2013 #3
JDPriestly Apr 2013 #4
elleng Apr 2013 #5
Jazzgirl Apr 2013 #6
elleng Apr 2013 #7

Response to Omaha Steve (Original post)

Thu Apr 18, 2013, 12:24 PM

1. Good news.

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Response to Omaha Steve (Original post)

Thu Apr 18, 2013, 02:59 PM

2. My paternal grandfather work their Los Angeles switchyards from WWII-70's

He had a great pension plan, excellent health care. U.P. had their own hospital system, until Raygun looted the pension, and closed down/sold off his retirement healthcare system..

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Response to Omaha Steve (Original post)

Thu Apr 18, 2013, 03:37 PM

3. Warren Buffett knew what he was doing

investing in railroads.

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Response to mainer (Reply #3)

Thu Apr 18, 2013, 03:57 PM

4. Buffet and Hydro-fracking?


Union Pacific Corp. (NYSE: UNP), the Warren Buffett-controlled railroad with the largest track network in the U.S., reached its highest stock price ever on Friday as it shifts its business to natural gas producers from coal shipments, which are dropping.

Omaha, Neb.-based Union Pacific, which closed up 2.25 percent to $126.91 on Friday, has taken advantage of the boom in natural gas by shipping materials for companies that use hydraulic fracturing to extract gas, which has offset declines in coal. business. The company's fracking shipments increase 12 percent in the second quarter compared to the prior year, according to Bloomberg. The company estimated that shale shipments will grow to 400,000 carloads in 2012, according to a July earnings call, or around twice the amount shipped in the northern U.S. in 2011, said Bloomberg.

"The railroads have surprisingly benefited from the very industry responsible for the steep decline in coal shipments. The recent boom in hydraulic fracturing has resulted in railroads transporting more equipment, and petroleum products to and from shale formations for energy companies," stated Five Star Equities, a New York research firm, on Monday.

http://www.ibtimes.com/buffetts-union-pacific-rides-hydrofracking-record-high-stock-price-739018

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Response to JDPriestly (Reply #4)

Thu Apr 18, 2013, 04:01 PM

5. Unless I missed something,

Warren Buffet controls Burlington Northern/Santa Fe, NOT Union Pacific, which is still widely held.

Certainly UP would take advantage of aspects of natural gas transportation and exploration, its what UP does, and its no surprise to me that railroads 'benefited from the very industry responsible for the steep decline in coal shipments. The recent boom in hydraulic fracturing has resulted in railroads transporting more equipment, and petroleum products to and from shale formations for energy companies," its what they do.

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Response to elleng (Reply #5)

Thu Apr 18, 2013, 06:29 PM

6. Warren Buffett does have a significant investment in the UP.

But Berkshire Hathaway owns BNSF lock, stock and barrel. Both railroads are making up losses on coal and grain with major increases in energy (read gas) shipments.

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Response to Jazzgirl (Reply #6)

Thu Apr 18, 2013, 06:37 PM

7. How 'significant' in UP?

As he and Berkshire own BNSF, a truly 'significant' UP holding would raise serious regulatory issues.

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