Union Pacific (UNP) 8-K Union Pacific Reports Best-ever Quarterly Results

Exhibit 99.1

UNION PACIFIC REPORTS BEST-EVER QUARTERLY RESULTS

Third Quarter Diluted Earnings per Share Up 18 Percent

FOR IMMEDIATE RELEASE

All-Time Quarterly Records

• Diluted earnings per share of $2.19 improved 18 percent.

• Operating revenues totaled $5.3 billion, up 5 percent.

• Operating income totaled $1.8 billion, up 13 percent.

• Operating ratio of 66.6 percent improved 2.5 points.

• Customer satisfaction index reached 94, up 3 points.

Omaha, Neb., October 18, 2012– Union Pacific Corporation (NYSE: UNP) today reported 2012 third quarter net income of $1 billion, or $2.19 per diluted share, compared to $904 million, or $1.85 per diluted share, in the third quarter 2011.

“Despite a 12 percent decline in coal volumes and significantly weaker steel and scrap metal markets, we generated best-ever financial results across the board,” said Jack Koraleski, Union Pacific chief executive officer. “We achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets.”

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Third Quarter Summary

Third quarter business volumes, as measured by total revenue carloads, were down slightly compared to 2011. Volume growth in chemicals, automotive and intermodal offset declines in shipments of coal, agricultural products and industrial products. Quarterly operating revenue increased 5 percent in the third quarter 2012 to $5.3 billion versus $5.1 billion in the third quarter 2011. In addition:

• Quarterly freight revenue increased 4 percent compared to the third quarter 2011, mainly driven by core pricing gains of 5 percent.

• Union Pacific’s operating ratio of 66.6 percent was an all-time quarterly best, 2.5 points better than the third quarter 2011 and a 0.4 point improvement from the previous record set in the second quarter 2012.

• Average quarterly diesel fuel prices were flat at $3.19 per gallon in the third quarter 2012 compared to $3.18 per gallon in the third quarter 2011.

• The Customer Satisfaction Index of 94 set an all-time quarterly record and was 3 points better than the third quarter 2011.

• Quarterly train speed, as reported to the Association of American Railroads, was 26.1 mph, increasing 6 percent compared to the third quarter 2011. Severe drought conditions in the South negatively impacted train speed in the third quarter of last year.

• The Company repurchased 3.1 million shares in the third quarter 2012 at an average share price of $122.13 and an aggregate cost of $378 million.

Summary of Third Quarter Freight Revenues

• Chemicals up 17 percent

• Automotive up 15 percent

• Intermodal up 8 percent

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• Industrial Products up 2 percent

• Agricultural down 4 percent

• Coal down 5 percent

2012 Outlook

“As we look out over the next several months, the political and financial challenges in the U.S. and abroad have increased economic uncertainty,” Koraleski said. “In this environment, we’ll continue to be agile as we were in the third quarter. We’ll adapt to changing market conditions and leverage our diverse franchise to provide excellent customer service and generate strong returns for our shareholders.”

About Union Pacific

It was 150 years ago that Abraham Lincoln signed the Pacific Railway Act of July 1, 1862, creating the original Union Pacific. One of America’s iconic companies, today, Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP), linking 23 states in the western two-thirds of the country by rail and providing freight solutions and logistics expertise to the global supply chain. From 2000 through 2011, Union Pacific spent more than $31 billion on its network and operations, making needed investments in America’s infrastructure and enhancing its ability to provide safe, reliable, fuel-efficient and environmentally responsible freight transportation. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. The railroad serves many of the fastest-growing U.S. population centers and emphasizes excellent customer service. Union Pacific operates competitive routes from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada’s rail systems and is the only railroad serving all six major Mexico gateways.

Investor contact is Michelle Gerhardt, (402) 544-4227.

Media contact is Donna Kush, (402) 544-3753.

Supplemental financial information is attached.

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This press release and related materials contain statements about the Corporation’s future that are not statements of historical fact, including specifically the statements regarding the Corporation’s expectations with respect to economic conditions; its ability to adapt to changing market conditions and continue providing quality customer service; and its ability to generate returns for 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 limitation, information or statements regarding: projections, predictions, expectations, estimates or forecasts as to the Corporation’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 Corporation’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 Corporation’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 Corporation’s Annual Report on Form 10-K for 2011, which was filed with the SEC on February 3, 2012. The Corporation 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 Corporation 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 Corporation does update one or more forward-looking statements, no inference should be drawn that the Corporation 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.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)

Millions, Except Per Share Amounts and Percentages,	3rd Quarter							Year-to-Date
For the Periods Ended September 30,	2012		2011		%			2012		2011		%
Operating Revenues
Freight revenues	$	5,019	$	4,836		4	%	$	14,755	$	13,679		8	%
Other revenues		324		265		22			921		770		20
Total operating revenues		5,343		5,101		5			15,676		14,449		8
Operating Expenses
Compensation and benefits		1,188		1,193		-			3,550		3,526		1
Fuel		880		916		(4)			2,688		2,646		2
Purchased services and materials		542		506		7			1,610		1,497		8
Depreciation		447		408		10			1,307		1,204		9
Equipment and other rents		300		293		2			895		878		2
Other		200		207		(3)			606		591		3
Total operating expenses		3,557		3,523		1			10,656		10,342		3
Operating Income		1,786		1,578		13			5,020		4,107		22
Other income		28		17		65			65		58		12
Interest expense		(137)		(142)		(4)			(407)		(431)		(6)
Income before income taxes		1,677		1,453		15			4,678		3,734		25
Income taxes		(635)		(549)		16			(1,771)		(1,406)		26
Net Income	$	1,042	$	904		15	%	$	2,907	$	2,328		25	%
Share and Per Share
Earnings per share - basic	$	2.21	$	1.87		18	%	$	6.13	$	4.78		28	%
Earnings per share - diluted	$	2.19	$	1.85		18		$	6.08	$	4.74		28
Weighted average number of shares - basic		472.0		484.2		(3)			474.5		487.4		(3)
Weighted average number of shares - diluted		475.2		488.1		(3)			477.9		491.5		(3)
Dividends declared per share	$	0.60	$	0.475		26		$	1.80	$	1.33		35
Operating Ratio		66.6%		69.1%		(2.5)	pts		68.0%		71.6%		(3.6)	pts
Effective Tax Rate		37.9%		37.8%		0.1	pts		37.9%		37.7%		0.2	pts

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)

	3rd Quarter							Year-to-Date
For the Periods Ended September 30,	2012		2011		%			2012		2011		%
Freight Revenues (Millions)
Agricultural	$	783	$	814		(4)	%	$	2,495	$	2,470		1	%
Automotive		436		379		15			1,341		1,102		22
Chemicals		841		720		17			2,404		2,087		15
Coal		1,058		1,112		(5)			2,922		3,014		(3)
Industrial Products		879		863		2			2,659		2,356		13
Intermodal		1,022		948		8			2,934		2,650		11
Total	$	5,019	$	4,836		4	%	$	14,755	$	13,679		8	%
Revenue Carloads (Thousands)
Agricultural		218		223		(2)	%		685		698		(2)	%
Automotive		181		160		13			551		482		14
Chemicals		275		233		18			777		689		13
Coal		501		572		(12)			1,408		1,606		(12)
Industrial Products		299		305		(2)			905		865		5
Intermodal*		857		848		1			2,481		2,437		2
Total		2,331		2,341		-	%		6,807		6,777		-	%
Average Revenue per Car
Agricultural	$	3,596	$	3,655		(2)	%	$	3,643	$	3,537		3	%
Automotive		2,407		2,364		2			2,435		2,287		6
Chemicals		3,064		3,087		(1)			3,094		3,029		2
Coal		2,111		1,945		9			2,075		1,877		11
Industrial Products		2,933		2,832		4			2,938		2,724		8
Intermodal*		1,192		1,119		7			1,182		1,087		9
Average	$	2,153	$	2,066		4	%	$	2,168	$	2,019		7	%

* Each intermodal container or trailer equals one carload

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)

Millions, Except Percentages	Sep. 30, 2012		Dec. 31, 2011
Assets
Cash and cash equivalents	$	1,130	$	1,217
Other current assets		2,816		2,510
Investments		1,235		1,175
Net properties		41,617		39,934
Other assets		272		260
Total assets	$	47,070	$	45,096
Liabilities and Common Shareholders’ Equity
Debt due within one year	$	713	$	209
Other current liabilities		3,161		3,108
Debt due after one year		8,773		8,697
Deferred income taxes		12,858		12,368
Other long-term liabilities		2,016		2,136
Total liabilities		27,521		26,518
Total common shareholders’ equity		19,549		18,578
Total liabilities and common shareholders’ equity	$	47,070	$	45,096
Debt to Capital		32.7%		32.4%
Adjusted Debt to Capital*		40.2%		40.7%

* Adjusted Debt to Capital is a non-GAAP measure; however, we believe that it is important in evaluating our financial performance. See page 8 for a reconciliation to GAAP.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)

Millions,	Year-to-Date
For the Periods Ended September 30,	2012		2011
Operating Activities
Net income	$	2,907	$	2,328
Depreciation		1,307		1,204
Deferred income taxes		490		721
Other - net		(338)		81
Cash provided by operating activities		4,366		4,334
Investing Activities
Capital investments		(2,876)		(2,218)
Other - net		10		(23)
Cash used in investing activities		(2,866)		(2,241)
Financing Activities
Common shares repurchased		(1,179)		(1,036)
Dividends paid		(860)		(607)
Debt issued		695		486
Debt repaid		(250)		(188)
Debt exchange		-		(272)
Other - net		7		85
Cash used in financing activities		(1,587)		(1,532)
Net Change in Cash and Cash Equivalents		(87)		561
Cash and cash equivalents at beginning of year		1,217		1,086
Cash and Cash Equivalents End of Period	$	1,130	$	1,647
Free Cash Flow*
Cash provided by operating activities	$	4,366	$	4,334
Cash used in investing activities		(2,866)		(2,241)
Dividends paid		(860)		(607)
Free cash flow	$	640	$	1,486

* Free cash flow is a non-GAAP measure; however, we believe that it is important to management and investors in evaluating our financial performance and measures our ability to generate cash without incurring additional financing.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)

	3rd Quarter							Year-to-Date
For the Periods Ended September 30,	2012		2011		%			2012		2011		%
Operating/Performance Statistics
Gross ton-miles (GTMs) (millions)		245,415		250,855		(2)	%		720,382		725,477		(1)	%
Employees (average)		46,205		45,507		2			45,882		44,841		2
GTMs (millions) per employee		5.31		5.51		(4)			15.70		16.18		(3)
Customer satisfaction index		94		91		3	pts		93		91		2	pts
Locomotive Fuel Statistics
Average fuel price per gallon consumed		$3.19		$3.18		-	%		$3.21		$3.11		3	%
Fuel consumed in gallons (millions)		267		277		(4)			811		820		(1)
Fuel consumption rate*		1.084		1.103		(2)			1.125		1.130		-
AAR Reported Performance Measures
Average train speed (miles per hour)		26.1		24.6		6	%		26.4		25.6		3	%
Average terminal dwell time (hours)		26.0		26.2		(1)			26.0		26.1		-
Average rail car inventory (thousands)		268.0		274.4		(2)			270.7		272.5		(1)
Revenue Ton-Miles (Millions)
Agricultural		19,349		20,991		(8)	%		62,470		66,145		(6)	%
Automotive		3,596		3,218		12			11,113		9,600		16
Chemicals		17,608		14,855		19			50,446		44,376		14
Coal		55,468		63,274		(12)			156,169		176,274		(11)
Industrial Products		17,772		17,746		-			53,915		49,852		8
Intermodal		19,513		19,961		(2)			58,529		58,726		-
Total		133,306		140,045		(5)	%		392,642		404,973		(3)	%

* Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)

	2012
Millions, Except Per Share Amounts and Percentages	1st Qtr		2nd Qtr		3rd Qtr		Year-to-Date
Operating Revenues
Freight revenues	$	4,823	$	4,913	$	5,019	$	14,755
Other revenues		289		308		324		921
Total operating revenues		5,112		5,221		5,343		15,676
Operating Expenses
Compensation and benefits		1,211		1,151		1,188		3,550
Fuel		926		882		880		2,688
Purchased services and materials		526		542		542		1,610
Depreciation		427		433		447		1,307
Equipment and other rents		296		299		300		895
Other		216		190		200		606
Total operating expenses		3,602		3,497		3,557		10,656
Operating Income		1,510		1,724		1,786		5,020
Other income		16		21		28		65
Interest expense		(135)		(135)		(137)		(407)
Income before income taxes		1,391		1,610		1,677		4,678
Income tax expense		(528)		(608)		(635)		(1,771)
Net Income	$	863	$	1,002	$	1,042	$	2,907
Share and Per Share
Earnings per share - basic	$	1.81	$	2.11	$	2.21	$	6.13
Earnings per share - diluted	$	1.79	$	2.10	$	2.19	$	6.08
Weighted average number of shares - basic		477.8		473.8		472.0		474.5
Weighted average number of shares - diluted		481.4		477.2		475.2		477.9
Dividends declared per share	$	0.60	$	0.60	$	0.60	$	1.80
Operating Ratio		70.5%		67.0%		66.6%		68.0%
Effective Tax Rate		38.0%		37.8%		37.9%		37.9%

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)

	2012
	1st Qtr		2nd Qtr		3rd Qtr		Year-to-Date
Freight Revenues (Millions)
Agricultural	$	858	$	854	$	783	$	2,495
Automotive		430		475		436		1,341
Chemicals		768		795		841		2,404
Coal		995		869		1,058		2,922
Industrial Products		863		917		879		2,659
Intermodal		909		1,003		1,022		2,934
Total	$	4,823	$	4,913	$	5,019	$	14,755
Revenue Carloads (Thousands)
Agricultural		234		233		218		685
Automotive		180		190		181		551
Chemicals		241		261		275		777
Coal		495		412		501		1,408
Industrial Products		290		316		299		905
Intermodal*		778		846		857		2,481
Total		2,218		2,258		2,331		6,807
Average Revenue per Car
Agricultural	$	3,664	$	3,665	$	3,596	$	3,643
Automotive		2,390		2,505		2,407		2,435
Chemicals		3,184		3,044		3,064		3,094
Coal		2,010		2,109		2,111		2,075
Industrial Products		2,977		2,907		2,933		2,938
Intermodal*		1,169		1,185		1,192		1,182
Average	$	2,175	$	2,176	$	2,153	$	2,168

* Each intermodal container or trailer equals one carload.

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP

Debt to Capital*
Millions, Except Percentages	Sep. 30, 2012		Dec. 31, 2011
Debt (a)	$	9,486	$	8,906
Equity		19,549		18,578
Capital (b)	$	29,035	$	27,484
Debt to capital (a/b)		32.7%		32.4%

* Total debt divided by total debt plus equity. Management believes this is an important measure in evaluating our balance sheet strength and is important in managing our credit ratios and financing relationships.

Adjusted Debt to Capital, Reconciliation to GAAP*
Millions, Except Percentages	Sep. 30, 2012		Dec. 31, 2011
Debt	$	9,486	$	8,906
Net present value of operating leases		3,096		3,224
Unfunded pension and OPEB		548		623
Adjusted debt (a)		13,130		12,753
Equity		19,549		18,578
Adjusted capital (b)	$	32,679	$	31,331
Adjusted debt to capital (a/b)		40.2%		40.7%

* Total debt plus net present value of operating leases plus after-tax unfunded pension and OPEB obligation divided by total debt plus net present value of operating leases plus after-tax unfunded pension and OPEB obligation plus equity. Operating leases were discounted using 6.0% at September 30, 2012 and 6.2% at December 31, 2011. The lower discount rate reflects changes to interest rates and our current financing costs. Management believes this is an important measure to management and investors in evaluating the total amount of leverage in our capital structure including off-balance sheet obligations.

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