HUTCHINSON, Kan. — Union Pacific Corporation Thursday reported strong first-quarter earnings despite some of the challenges brought on by the pandemic. The nation's largest railroad reported net income of $1.5 billion, or $2.15 per diluted share. This compares to $1.4 billion, or $1.93 per diluted share, in the first quarter of 2019.
“Against the backdrop of the emerging COVID-19 pandemic and a challenging volume environment, we leveraged productivity to deliver strong financial results, including an all-time best operating ratio of 59 percent,” Lance Fritz, Union Pacific chairman, president and chief executive officer said. “We also made substantial improvement in employee safety, which is a testament to our dedicated employees. Our rail network has never run better, providing a safer, more reliable, and efficient service product to our customers.”
Not all of the numbers were positive as carloads continued to fall from the previous year and operating revenue fell 3% to $5.2 billion.
Union Pacific expects second quarter 2020 carload volumes to be down around 25 percent, compared to the second quarter 2019. Although the situation is fluid and highly uncertain, the company said in its release that it fully expects to survive an extended period of lower volumes.
“Our first priority is the health and safety of our employees during the COVID-19 pandemic, as they perform the work necessary to move the goods communities need during this national emergency,” Fritz said. “The eighteen month implementation of Unified Plan 2020 has put our company in a position of strength, with a strong balance sheet and ample liquidity, as we face today’s fluid and uncertain situation. We remain focused on providing a highly consistent, reliable and efficient service product for our customers.”
Union Pacific operates about 25 trains per day in Reno County and carries the fourth highest valuation in the county at just over $10-million.