Union Pacific Corporation · NYSE:UNP
Union Pacific — Union Pacific Analyst Conference 2003
13 slides from Union Pacific's conference presentation, 2003
Slide 1: Automotive
Automotive Eric Butler
Slide 2: Automotive
Automotive 2002 Revenue - $1.2 Billion Key Drivers • Auto Sales • Truck Conversion • Consumer Preference • Production Location Business Mix Materials 18% Assembled Autos 82%
Slide 3: Western Market Share
Western Market Share Rail Susceptible Business Vehicles Materials 15% 35% 20% 59% 65% 6% UP Other Rail Truck
Slide 4: Rail vs Truck Economics
Rail vs Truck Economics Auto Materials - Detroit to Saltillo/Ramos, Mexico Cost Savings Detroit -22% -35% -48% Saltillo/ Ramos Truck Truck Door-to- Door-to- Dray Dray Boxcar Boxcar Direct Direct Door Door Cross- Cross- Direct Direct Intermodal Dock Intermodal Dock
Slide 5: What Has Changed? Customer's Perspective
What Has Changed? From The Customer’s Perspective: • Auto Manufacturer Survival • Significant Cost and Pricing Pressures • Growing Sourcing Options – Domestic – International • Balancing Total Cost vs Just-in-Time
Slide 6: What Has Changed? UP's Perspective
What Has Changed? From UP’s Perspective: Comprehensive Auto Network • Dedicated UP Resources • New Service Offerings • Rail Carrier Alliances Changing Customer Relationships
Slide 7: Where Is UP Exploiting The Market?
Where Is UP Exploiting The Market? Seattle Seattle Tacoma Tacoma CP Chicago Detroit Detroit Chicago Salem Salem Oakland Oakland E. E. St. St. Louis Louis Memphis Memphis Los Los Angeles Angeles Long Long Beach Beach Nogales Nogales El El Paso Paso Eagle Eagle Pass Pass New New Orleans Orleans Laredo
Slide 8: Recent Successes
Recent Successes Truck Conversions via OEM’s • Coil & Leaf Springs: Northern Mexico to Detroit Area • 6,500 Truckloads Off the Highway • Gas Tanks: Northern Mexico to an on-line plant • 1,000 Truckloads Off the Highway • Automotive Components: Upper Midwest to Central Mexico • 2,100 Truckloads Off t
Slide 9: What Is The Result?
What Is The Result? Parts Volume Converted from Highway Annual Annual Truckload Truckload Equivalents Equivalents Over 56,000 Trucks Annually 60,000 60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 00 Jan Mar May Jul Oct Dec Jan Mar May Jul Feb Apr Jun Aug Sept Nov Feb Ap
Slide 10: Vehicle Product Development
Vehicle Product Development Medium Duty & Large Trucks - Class 4 - 8 • Innovative Equipment Required Used Vehicles • Fleet Turn Backs • Regional Auto Auctions
Slide 11: Emerging Issues
Emerging Issues • Transition from Incentives to No Incentives • Off-Shore Sourcing • Competitiveness of Domestic Production
Slide 12: Automotive 2004 Drivers
Automotive 2004 Drivers • Auto Sales + • Truck Conversion ++ • Consumer Preference + • Production Location +/- Long Term Growth 2-4%
Slide 13: Union Pacific Railroad
Union Pacific Railroad
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