Union Pacific Corporation · NYSE:UNP
Union Pacific — Q1 2024 Earnings Presentation
10 slides from Union Pacific's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings
UNION PACIFIC CORPORATION FIRST QUARTER 2024 EARNINGS APRIL 25, 2024 1 EXECUTIVE SUMMARY FIRST QUARTER 2024 Jim Vena Chief Executive Officer 2 2
Slide 2: First Quarter Highlights & Executive Summary
First Quarter Highlights & Executive Summary Highlights Executive Summary $2.69 Earnings per Share • Continuous improvement driven by strategy of safety, service, and $6.0B Operating Revenue operational excellence $2.4B Operating Income • Solid core pricing gains and productivity offset lower fuel s
Slide 3: First Quarter Income Statement; Cash Generation & Returns to Shareholders
First Quarter Income Statement 2024 2023 Variance Freight Revenue Drivers: Freight Revenue Ex. Fuel $4,951) $4,773) 4) Price/Mix 3.50% Fuel Surcharge 665) 883) (25) Volume (0.50%) Freight Revenue 5,616) 5,656) (1) Other Revenue 415) 400) 4) Fuel Surcharge (3.75%) Operating Revenue 6,031) 6,056) -) O
Slide 4: Current 2024 Outlook
Current 2024 Outlook Updated • Profitability outlook gaining momentum with strong service product, improving network efficiency, and solid pricing • Restarting Share Repurchases in Second Quarter Affirmed • Volume Outlook Muted by International Intermodal Business Loss, Lower Coal Demand, and Soft E
Slide 5: First Quarter Commodity Review and 2024 Volume Outlook
First Quarter Commodity Review Commodity Revenue Volume ARC Quarterly Drivers (Millions) (Thousands) • Low Coal Demand due to Mild Winter and Record Low Bulk $1,817 480 $3,787 Natural Gas Prices vs. 1Q’23 4% 5% 1% • Increased Export Grain • Food & Refrigerated Business Development Wins • Petroleum B
Slide 6: Key Performance Metrics
OPERATIONS REVIEW FIRST QUARTER 2024 Eric Gehringer Executive Vice President – Operations 11 11 FIRST QUARTER 2024 Key Performance Metrics YTD Reportable Personal Injury and Derailment Rates Improved Freight Car Intermodal Service Manifest/Auto Service Velocity Performance Index Performance Index 20
Slide 7: Key Efficiency Metrics
FIRST QUARTER 2024 Key Efficiency Metrics Locomotive Workforce Train Productivity Productivity Length 135 1,000 9,287 10% 1% 1% Quarterly Drivers Storing Excess Improved Resource Reduced Locomotives Utilization Car Handling 13 Year-over-year change in metrics. 13 HOW WE WIN FIRST QUARTER 2024 Jim Ve
Slide 8: Safety, Service and Operational Excellence = Growth; Cautionary Information
Safety, Service and Operational Excellence = Growth SAFETY Be the best at safety. PEOPLE SERVICE Engage our teams and Deliver the service we stakeholders. sold our customers. COST CONTROL ASSET UTILIZATION Spend resources wisely, with Drive decision-making to a buffer for the unexpected. those close
Slide 9: Question & Answer
UNION PACIFIC CORPORATION QUESTION & ANSWER APRIL 25, 2024 17 APPENDIX 18 18
Slide 10: 2024 Operating Ratio and EPS; Operating Expenses Bridge
First Quarter 2024 Operating Ratio and EPS Favorable / (Unfavorable) Operating Ratio EPS First Quarter 2023 62.1% $2.67 Fuel Price (net) (0.6) pts ($0.15) 2023 Real Estate Gain - ($0.14) Core Results (2.0 pts ($0.31 First Quarter 2024 60.7% $2.69 19 19 Lower Fuel Prices and Improved Productivity Par