UP Posts Record $6.2B Q1 Revenue as Net Income Climbs 5%

Union Pacific Q1 results showed several financial and operating records. The railroad reported a strong first quarter. This is reported by the railway transport news portal Railway Supply.

Union Pacific Q1 results and financial records

In its first-quarter results, operating revenue rose 3% year over year. It reached a record $6.2 billion. Also, operating income increased 4% to $2.5 billion. In addition, net income rose 5% to $1.7 billion. Freight revenue climbed 4% to $5.9 billion.

The railroad improved its operating ratio by 0.2 points to 60.5. Its adjusted operating ratio improved by 0.8 points to 59.9. Operating expenses increased 3% to $3.8 billion. At the same time, volume declined 1% to 2.1 million units.

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Operating performance records

Union Pacific also cited several operating performance records. It reported its best-ever quarter for terminal dwell time and locomotive productivity. It also reported its best first quarter for freight-car velocity and train length. Workforce productivity and fuel consumption rate also reached first-quarter bests.

Freight-car velocity rose 9% to 235 daily miles per car. Average terminal dwell time improved 11% to 19.7 hours. Locomotive productivity increased 6% to 144 gross ton-miles per horsepower day. Meanwhile, workforce productivity rose 7% to 1,163 car miles per employee.

“Our safety, service and operational excellence strategy has not changed, and I’m proud of the momentum we carried into the first quarter. These results are spectacular,” said UP CEO Jim Vena in an online message on Q1 results. “Based on our service performance, the case for our merger [with Norfolk Southern Railway] is stronger than ever.”

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