Union Pacific Corporation has reported 2016 fourth quarter net income of US$1.1 billion, or US$1.39 per diluted share compared to US$1.31 per diluted share, in the fourth quarter 2015.
"While full-year volumes were down substantially year over year, we did see declines moderate in the fourth quarter," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "As we worked through the challenges of the year, we remained focused on the strategy we live each day through our six value tracks. Executing on these value tracks enables us to run a safe, efficient, and productive railroad while providing our customers an excellent value proposition."
Fourth Quarter Summary
Operating revenue of US$5.2 billion was down 1% in the fourth quarter 2016 compared to the fourth quarter 2015. Fourth quarter business volumes, as measured by total revenue carloads, declined 3% compared to 2015. While shipments of agricultural products grew 8%, volumes declined in the remaining five business groups. In addition:
Summary of 4Q16 freight revenues
2016 full year summary
For the full year 2016, Union Pacific reported net income of US$4.2 billion or US$5.07 per diluted share versus US$4.8 billion or US$5.49 per diluted share in 2015, representing 11 and 8% decreases, respectively. Operating revenue totaled US$19.9 billion as compared to US$21.8 billion in 2015. Operating income totalled $7.3 billion, a 10% decrease compared to 2015. In addition:
"Looking to 2017, we are fairly optimistic about some of the macro-economic indicators that drive our core business. Higher energy prices, favourable agricultural markets and improving business and consumer confidence all support a return to positive volume growth this year," Fritz said. "We continue to have confidence in the strength and diversity of the Union Pacific franchise, which will position us well to safely and efficiently leverage stronger volumes as our markets begin to rebound. We will continue to execute on our strategic value tracks to provide our customers an excellent service experience while generating strong returns for our shareholders."
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/20012017/union-pacific-reports-4q16-results/