Union Pacific Corporation · NYSE:UNP
Union Pacific — Q2 2022 Earnings Presentation
12 slides from Union Pacific's earnings presentation, Jul 21, 2022
Slide 1: Second Quarter 2022 Earnings Release
SECOND QUARTER 2022 EARNINGS RELEASE Lance Fritz, Chairman, President, & CEO July 21, 2022 Second Quarter 2022 Results Earnings Per Share Operating Ratio $2.93 $2.72 60.2% 8% vs 2021 5.1 pts vs 2021 55.1% 2Q 2021 2Q 2022 2Q 2021 2Q 2022 Key Themes Positive Price and Mix Restoring Network Fluidity Re
Slide 2: Marketing & Sales Review: Bulk
SECOND QUARTER 2022 MARKETING & SALES REVIEW Kenny Rocker Executive Vice President – Marketing & Sales 3 SECOND QUARTER 2022 Bulk Revenue $1,813 (+10%) Volume 498K (-1%) ARC $3,642 (+12%) Major Markets Coal & Renewables Grain & Fertilizer Food & Grain Products Refrigerated 198 202 204 195 +2% -4% 54
Slide 3: Industrial and Premium
SECOND QUARTER 2022 Industrial Revenue $2,091 (+12%) Volume 570K (+6%) ARC $3,674 (+7%) Major Markets Energy & Specialized Forest Products Industrial Chemicals Metals & Minerals & Plastics 205 182 156 161 +13% 138 141 +3% +2% 64 63 -2% 2Q 2021 2Q 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022
Slide 4: Second Half 2022 Volume Outlook
Second Half 2022 Volume Outlook Bulk Industrial Premium Biofuels Industrial Production Domestic Intermodal Coal Chemicals and Plastics International Intermodal Grain Petroleum Auto Sales 7 SECOND QUARTER 2022 OPERATIONS REVIEW Eric Gehringer Executive Vice President – Operating 8
Slide 5: Focus on Improving Service, Hiring Crews and Increasing Efficiency
Focus on Improving Service, Hiring Crews and Increasing Efficiency Operating Inventory, Volume, and Freight Car Velocity* 2022 Transportation Employee 201,334 Hiring Progress Freight Car Operating Car Velocity Inventory 486 504 187,812 196 191 154,417 161,524 157,863 7-Day Father’s Volumes Day Indep
Slide 6: Key Performance Metrics
SECOND QUARTER 2022 Key Performance Metrics LOCOMOTIVE WORKFORCE TRAIN LENGTH PRODUCTIVITY PRODUCTIVITY (Max on Route, in Feet) (GTMs Per HP Day) (Daily Miles per FTE) 9,410 9,439 1,060 1,034 140 123 2Q 2021 2Q 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022 Quarterly Drivers Larger Active Locomotive Fleet Exe
Slide 7: Second Quarter Operating Ratio and EPS
SECOND QUARTER 2022 FINANCIAL REVIEW Jennifer Hamann Executive Vice President & Chief Financial Officer 13 Second Quarter Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS Second Quarter 2021 (55.1% ($2.72 Fuel Price (net) (1.3) pts ( $0.18 Core Results (3.8) pts ($0.02) 2022 Rea
Slide 8: Second Quarter Income Statement
Second Quarter Income Statement 2022 vs. 2022 2021 2021 Operating Revenues $6,269- $5,504- 14---- % Operating Expenses 3,774- 3,031- 25)--- Operating Income 2,495- 2,473- 1---- Other Income 163- 125- 30)--- Interest Expense (316) (282) 12)--- Income Taxes (507) (518) (2) -- Net Income $1,835 $1,798
Slide 9: Solid Cash Generation and Shareholder Returns
Recovery and Fuel Impact Quarterly Operating Expenses $ in Millions 25% $3,774 $30 $9 $47 $144 $3,031 $443 $70 7% 89% 30% 15% 2% 17% Compensation Fuel Purchased Equipment Depreciation Other & Benefits Services & & Other Materials Rents 2Q 2Q 2021 2022 17 Solid Cash Generation and Shareholder Returns
Slide 10: First Half 2022 Results Challenge Previous Full Year Targets
First Half 2022 Results Challenge Previous Full Year Volume and Operating Ratio Targets Updated • Stronger Second Half Volumes Should Produce Full Year Carload Growth of 4% to 5% • Full Year Operating Ratio Around 58% • Second Half Operating Ratio Improvement vs. 2021 • Second Half Incremental Margi
Slide 11: 2022 Success Drivers; Cautionary Information
2022 Success Drivers Enhance Safety Programs Advance Customer Experience Operational Excellence Expand Reach to Service New Markets and Industries Provide Value to All Win with Customers Stakeholders Industry Leading Cash ESG Leader Returns 21 Cautionary Information This presentation and related mat
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