First Quarter 2017 Results

Similar documents
Second Quarter 2016 Results

Third Quarter 2014 Earnings Release

Fourth Quarter Earnings Release January 19, 2012

Fourth Quarter 2012 Earnings Release

Fourth Quarter 2018 Results

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

Cautionary Information

First Quarter Earnings Release

2008 BB&T Transportation Conference

BB&T Transportation Services Conference February 15, 2012

Union Pacific Reports First Quarter Results First Quarter Diluted Earnings per Share up 9 Percent

Union Pacific Reports All-Time Quarterly Records

Union Pacific Reports Record First Quarter Diluted Earnings per Share up 17 Percent

Bank of America Merrill Lynch 2014 Global Transportation Conference

Union Pacific Reports Fourth Quarter and Full Year 2017 Results

Union Pacific Reports Fourth Quarter and Full Year 2015 Results

J. P. Morgan Aviation, Transportation & Industrials Conference

Union Pacific Reports Best-Ever Quarterly Results

Union Pacific Reports Best-Ever Quarterly Results Diluted Earnings per Share up 13 Percent

Union Pacific Reports All-Time Quarterly Records Third Quarter Diluted Earnings per Share up 23 Percent

UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter)

January 25, Jim Young, President & CEO

Diluted earnings per share of $1.50 increased 10 percent. Operating income totaled $2.0 billion, up 3 percent.

UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter)

UNION PACIFIC REPORTS THIRD QUARTER EARNINGS Sets Record Third Quarter Operating Ratio in Tough Economy. Third Quarter 2009 Highlights

Diluted earnings per share of $2.15 increased 43 percent. Operating ratio of 61.7 percent, flat with third quarter 2017 (see footnote 1).

Cautionary Information

UNION PACIFIC REPORTS RECORD FOURTH QUARTER AND FULL YEAR EARNINGS Operating Ratio Improves to 79.6 percent. Fourth Quarter 2006 Highlights

First Quarter 2015 Financial Results April 20, 2015

UNION PACIFIC REPORTS RECORD FIRST QUARTER Diluted Earnings per Share up 39 Percent

BAML 2012 Global Transportation Conference May 17, 2012

J.P. Morgan Transportation Conference March 13, 2012

UNION PACIFIC REPORTS RECORD FOURTH QUARTER AND FULL YEAR EARNINGS. Fourth Quarter 2007 Records. Operating revenue totaled $4.2 billion, up 6 percent.

Diluted earnings per share of $1.98 increased 37 percent. Operating income totaled $2.1 billion, up 5 percent.

UNION PACIFIC REPORTS RECORD QUARTERLY EARNINGS Best-Ever Operating Income and Sub-70 Operating Ratio. All-Time Quarterly Records

First Quarter 2008 Earnings Conference Call

2018 FIRST QUARTER CSX EARNINGS CONFERENCE CALL

Diluted earnings per share of $1.68 increased 27 percent. Operating income totaled $1.9 billion, up 8 percent.

Cautionary Information

2007 BB&T Transportation Conference

UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter)

UNION PACIFIC CORPORATION

FORWARD-LOOKING STATEMENTS

UNION PACIFIC CORPORATION (Exact name of registrant as specified in its charter)

2018 FOURTH QUARTER EARNINGS CONFERENCE CALL. James M. Foote President and Chief Executive Officer

Second Quarter 2017 Financial Results. July 25, 2017

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS

Second Quarter 2016 Earnings Call

J.P. Morgan Aviation, Transportation & Defense Conference

Second Quarter 2018 Earnings Call

Goldman Sachs Global Industrials Conference

UNION PACIFIC REPORTS RECORD THIRD QUARTER EARNINGS

Burlington Northern Santa Fe, LLC

Fourth Quarter 2017 Earnings Call

FORWARD LOOKING STATEMENTS

B a n k o f A m e r i c a M e r r i l l Ly n c h. May 16, 2013 Boston, MA. J i m Ve n a Executive Vice-President & Chief Operating Officer

Cowen and Company Global Transportation & Aerospace/Defense Conference. Wick Moorman Chairman and Chief Executive Officer September 3, 2014

Citi 2013 US and European Industrials Conference

Safe Harbor Statement

2018 SECOND QUARTER EARNINGS CONFERENCE CALL. James M. Foote President and Chief Executive Officer

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS

Ferromex Ferrosur Florida East Coast Imex Raven Texas Pacífico. 4Q 2018 Results

Q EARNINGS REVIEW OCTOBER

2016 BB&T Annual Transportation Services Conference

First Quarter 2011 Results. Norfolk Southern Corporation

RBC Capital Markets Transportation and Industrials Conference

Burlington Northern Santa Fe, LLC

Cautionary Information

CP reports record fourth-quarter and record full-year results on the strength of its operating model and disciplined approach in the marketplace

Fourth Quarter Earnings Conference Call. January 27, 2016

Robert Pace CHAIRMAN OF THE BOARD

Burlington Northern Santa Fe, LLC

INVESTING for the LONG HAUL 2018 QUARTERLY REVIEW FOURTH QUARTER

CANADIAN PACIFIC ANNOUNCES 2008 RESULTS

Union Pacific Railroad (UNP)

Kansas City Southern Reports Record Fourth Quarter and Full-Year 2018 Results

Kansas City Southern Reports Record Fourth Quarter and Full-Year 2017 Results

FORWARD LOOKING STATEMENTS

Media Contact: William H. Galligan Phone: 816/

Kansas City Southern Reports Record First Quarter Results

1st Quarter 2009 Investors Report

Kansas City Southern. Michael W. Upchurch Executive Vice President Finance & CFO. Raymond James Institutional Investors Conference March 7 th, 2016

In 2017, CP will continue to find opportunities to enhance the productivity, fluidity and safety of its operations.

Kansas City Southern Reports Third Quarter Results

Kansas City Southern Reports Fourth Quarter and Full-Year 2016

Genesee & Wyoming. Jack Hellmann, President & CEO. February Genesee & Wyoming Inc.

2016 Kansas City Southern KANSAS CITY SOUTHERN. Bank of America Merrill Lynch Transportation Conference

FIRST QUARTER Quarterly Financial Data

3. FORWARD-LOOKING INFORMATION

Type. Fourth Quarter 2008 Earnings Call. February 11, 2009

THIRD QUARTER Quarterly Financial Data

Transcription:

April 27, 2017 First Quarter 2017 Earnings Release Lance Fritz Chairman, President & CEO 1 First Quarter 2017 Results Earnings Per Share First Quarter Operating Ratio First Quarter $1.16 +14% $1.32 First Quarter Record Flat 65.1 65.1 2

April 27, 2017 First Quarter 2017 Marketing & Sales Review Beth Whited Executive VP & Chief Marketing Officer 3 First Quarter 2017 Recap Coal Volume Growth +16% 210 7-Day Monthly Carloadings (000s) Agricultural Products +6% 190 2006 @192 2014 @188 Industrial Products +1% Intermodal Flat 170 2017 @164 2015 @177 2016 @164 Automotive -2% 150 Chemicals TOTAL -4% +2% 130 January December 4

Agricultural Products Revenue $942M (+7%) Volume 250K (+6%) ARC $3,773 (+1%) 87.4 Grain* +19% 103.9 Grain Products* Flat 77.8 77.8 Food & Refrigerated* Volume Mix -3% 53.0 51.4 Quarterly Drivers Strong Grain Exports Reduced Canned Goods Weather Challenges Food & Refrigerated 21% Grain Products 31% Grain 48% *Volume in thousands of carloads and excludes equipment shipments 5 Automotive Revenue $504M (-1%) Volume 212K (-2%) ARC $2,373 (+1%) Finished Vehicles* Auto Parts* 120.0-8% 110.7 96.9 +5% 101.8 Volume Mix Auto Parts 48% Finished Vehicles 52% Quarterly Drivers Production Levels & Contract Changes Vehicle Sales Moderating Continued Parts Strength *Volume in thousands of carloads 6

Chemicals Revenue $885M (+1%) Volume 257K (-4%) ARC $3,448 (+5%) Petroleum & LPG* Plastics* +3% -23% 58.3 62.5 64.3 45.1 Quarterly Drivers Continued Crude Oil Declines Strength in Plastics Volume Mix Soda Ash 12% Soda Ash 12% Petrol. & LP Gas 17% Industrial Chemicals 30% Fertilizer 16% Plastics 25% *Volume in thousands of carloads 7 Coal Revenue $648M (+25%) Volume 304K (+16%) ARC $2,134 (+8%) Powder River Basin*^ (Tons in MM) Other Regions^ (Tons in MM) Volume Impact (Weekly Carloadings) +17% 50,000000 28.5 24.3 +17% 40,000 6.0 7.0 30,000 2014 2015 20,000 2017 2016 Quarterly Drivers Higher Natural Gas Prices Increased Exports Coal Stockpile Reduction 10,000 0 1Q 2Q 3Q 4Q * PRB includes SPRB and NPRB ^ Figures revised from original version published on April 27, 2017 8

Industrial Products Revenue $907M (+9%) Volume 278K (+1%) ARC $3,261 (+7%) Minerals* Construction* Specialized Markets* +32% 63.8 48.2-9% 98.9 89.6-4% 28.0 26.9 Volume Mix Other Lumber Minerals 11% Paper 7% 9% Frac Sand* 16% Quarterly Drivers Improved Shale Drilling Activity Decreased Rock Shipments Reduced Waste Volume Specialized Markets 10% Metals 15% Construction 32% *Includes Barites *Volume in thousands of carloads 9 Intermodal Revenue $908M (+3%) Volume 787K (Flat) ARC $1,154 (+3%) Domestic* -1% 414.3 410.9 International* +1% 373.8 376.33 Volume Mix International 48% Domestic 52% Quarterly Drivers Competitive Pressures Improved International Shipments *Volume in thousands of loads 10

2017 Volume Outlook Agricultural Products? Grain + Food and Refrigerated Coal + Favorable Comps? Price of Natural Gas Automotive? Consumer Demand + Parts Growth Industrial Products + Frac Sand? U.S. Dollar Strength Chemicals + Plastics - Crude Oil Declines Intermodal? International Intermodal + Over the Road Conversions 11 April 27, 2017 First Quarter 2017 Operations Review Cameron Scott Executive VP & Chief Operating Officer 12

Safety 1.12 1.10 Employee (Reportable Personal Injury Incidents Per 200,000 Employee-Hours) Good 0.85 +19% 0.89 0.75 First Qtr Record 2.32 Rail Equipment (Reportable Derailment Incidents Per Million Train Miles*) 2.65 295 2.95 +11% 3.18 2.86 Good 1Q13 1Q14 1Q15 1Q16 1Q17 Public (Crossing Accidents Per Million Train Miles) Good 2.59 2.58-7% 2.37 2.21 1.88 1Q13 1Q14 1Q15 1Q16 1Q17 Goal of Zero Incidents Enhanced Training & Infrastructure Investment Crossing Assessment Process 1Q13 1Q14 1Q15 1Q16 1Q17 *Starting in August 2016, crossing collisions were excluded from rail equipment incidents per FRA methodology. Prior periods have been adjusted to reflect the change. 13 Network Performance 27.3 Velocity (As Reported to the AAR, in mph) First Quarter Record -6% 25.7 Good Terminal Dwell (As Reported to the AAR, in hours) +7% 30.6 28.6 Good 1Q16 * 1Q17 1Q16 1Q17 Terminal Productivity Western Region Weather Challenges (vs 1Q16) g Nbr of Cars Switched +2% Y&L Employee Days Cars Switched per Employee Day -1% +4% Improved Terminal Productivity 14

Volume & Performance Drive Resources Total TE&Y (Full-Time Equivalent) Active Locomotive Fleet -1% +3% 14,141 6,774 14,015 6,590 1Q16 1Q17 Train Size Performance (vs 1Q16) Auto* +4% Intermodal** +3% Manifest* +2% Grain** +1% Coal Flat Good 1Q16 1Q17 Balanced Resource Base TE&Y Furloughs^: ~1,650 Stored Locomotives^: ~1,400 Adjust with Volume and Network Performance * Best-Ever Quarter **First-Quarter Record ^As of March 31, 2017 15 Operating Outlook Continue to Generate Positive Safety Results Resource Agility Maintain Focus on Productivity & Efficiency 16

April 27, 2017 First Quarter 2017 Financial Review Rob Knight Executive VP & Chief Financial Officer 17 First Quarter Income Statement $ in Millions (except EPS) 2017 2016 % Operating Revenues $5,132 $4,829 6 Operating Expenses 3,339339 3,142 6 Operating Income 1,793 1,687 6 Other Income 67 46 46 Interest Expense (172) (167) 3 Income Taxes (616) (587) 5 Net Income $1,072 $979 9 Weighted Average Diluted Shares 814.8 846.7 (4) Diluted EPS $1.32 $1.16 14 18

Freight Revenue First Quarter ($ In Millions) $4,502 +2.0% +2.5% +6.5% +1.0% +1.0% $4,794 Volume Fuel Surcharge Mix Core Price 2016 2017 19 First Quarter Operating Expenses $ In Millions Compensation & Benefits $1,213 +4% $1,257 Fuel +44% $320 $460 Purchased Services & Materials -1% $569 $566 Inflation and Volume Increases Higher Diesel Fuel Prices Weather and Incident Related Expenses 20

First Quarter Operating Expenses (cont) $ In Millions Depreciation $502 +4% $520 Equipment & Other Rents $289-4% $276 Other Expenses Higher Depreciable Base $249 +4% $260 Lower Locomotive Lease Expense 21 Cash Flow & Debt $ In Millions Cash From Operations $2,173-13% $1,883 Bonus Depreciation Capital Investments Adjusted Debt* $17,390 $17,878 $17,759 759 Increased Adj. Debt over $5 Billion since 2013 1.9 1.9 1.7 12/31/2015 12/31/2016 3/31/2017 Adjusted Debt / EBITDA* * See Union Pacific website under Investors for a reconciliation to GAAP 22

Delivering Value to Shareholders $ In Millions Dividends $465 $492 Share Repurchases $713 $802 Four Year, 120 Million Share Repurchase Program Beginning January 1, 2017 Cash Returned to Shareholders $4.9 94% ($ In Billions) 122% 118% 121% $5.8 $5.0 $1.3 12/31/2014 12/31/2015 12/31/2016 3/31/2017 Cash Returned as % of Net Income Repurchased 7.5 Million Shares Totaling $802 Million in 2017 ~30% of Outstanding Shares Since 2007 2017 YTD Cash Returns to Shareholders: 121% of Net Income 23 Productivity Update First Quarter Results: ~$90 Million of Savings 4Q14: $438 Leveraged Volume Growth Reduced Locomotive Costs Lease Turnbacks Support Function Initiatives 24

2017 Outlook Full Year Low Single Digit Volume Growth 4Q14: $438 Operating Ratio (%) Price Above Inflation Productivity $350 to $400 Million 63.5 60 +/- Improved Operating Ratio 2016 2019 Target Continued Focus on G55+0 25 April 27, 2017 First Quarter 2017 Earnings Release Lance Fritz Chairman, President & CEO 26

Looking Ahead Solid First Quarter Results Continued Focus on Pricing & Productivity Gradual Improvement in the Economy Value Tracks Have us Well Positioned 27 Cautionary Information This presentation and related materials contain statements about the Company s future that are not statements of historical fact, including specifically the statements regarding the Company s expectations with respect to economic conditions and demand levels; its ability to generate financial returns, improve network performance and customer service; implementation of corporate strategies; and providing excellent service to its customers and returns to its shareholders. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements also generally include, without t limitation, information or statements regarding: projections, predictions, expectations, estimates or forecasts as to the Company s and its subsidiaries business, financial, and operational results, and future economic performance; and management s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Company s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Company s and its subsidiaries future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Company s Annual Report on Form 10-K for 2016, which was filed with the SEC on February 3, 2017. The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC). Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. 28

April 27, 2017 First Quarter 2017 Earnings Release Question & Answer Session 29