Union Pacific Corporation
) reported first quarter fiscal 2013 adjusted earnings of $2.03
per share, surpassing the Zacks Consensus Estimate of $1.96 as
well as the year-ago earnings of $1.79. Better-than-expected
earnings were aided by higher pricing and an improvement in
Revenues rose 3% year over year to $5,290 million in the first
quarter, beating the Zacks Consensus Estimate of $5,286 million.
Volumes (carloads) registered a dip of 2% year over year due to
lower coal and agricultural shipments. Average revenue per car
increased 6% year over year.
Operating income rose 8% year over year to $1,633 million in the
first quarter. Operating expenses increased 2% year over year to
Operating ratio (defined as operating expenses as a percentage of
revenue) improved 140 bps year over year to 69.1%. Further, the
company's customer satisfaction index nudged up to 94 from 93 in
the year-ago period.
revenues in the first quarter were $784 million, down 9% year
over year. Business volumes were also down by 9% year over year
and average revenue per car inched up 1% year over year.
accounted for $487 million revenues, up 13% year over year.
Business volumes were up 2% year over year and average revenue
per car rose 11% year over year.
contributed $873 million in revenues, up 14% year over year.
Volume was up 12% year over year. Average revenue per car nudged
up 1% year over year.
revenues saw a decline of 6% year over year to $936 million,
owing to a 19% decline in volumes. However, average revenue per
car remained positive with 16% growth year over year.
Products generated revenues of $916 million, up 6% despite flat
volumes on a year-over-year basis. Average revenue per car was up
7% year over year.
segment revenues were $988 million, up 9% year over year.
Business volumes were up 4% year over year. Average revenue per
car was also up 4% year over year.
revenues increased 6% year over year to $306 million.
Union Pacific exited the first quarter with cash and cash
equivalents of $1,917 million, up from $995 million in the year
ago quarter. Free cash flows were $401 million at the end of the
quarter compared with $285 million in the corresponding
Long-term debt was $9.3 billion in the first quarter versus $8.8
billion in 2012. Adjusted debt-to-capitalization ratio increased
to 40.2% from 39.1% at year-end 2012.
Favorable market trends of the non-coal businesses are expected
to boost Union Pacific's revenue and earnings levels in the
coming months. We believe that the company has an attractive
product franchise given its exposure to a unique mix of commodity
end markets alongside the strength in intermodal services.
Further, an improved cost structure and investment program
will support the company's performance, going forward.
Nevertheless, we stay on the sidelines due to concerns related to
agricultural and coal volumes, stringent regulations, rising
expenditures, and competitive threats.
CDN PAC RLWY (CP): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
KANSAS CITY SOU (KSU): Free Stock Analysis
UNION PAC CORP (UNP): Free Stock Analysis
To read this article on Zacks.com click here.
Union Pacific, which operates with the likes of
Kansas City Southern
Canadian Pacific Railway
), currently has a Zacks Rank #3 (Hold).