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

Exhibit 99.1

Union Pacific Reports Best-Ever Quarterly Results

Diluted Earnings per Share up 13 Percent

FOR IMMEDIATE RELEASE

Best-Ever Quarterly Records

• Diluted earnings per share of $2.48 improved 13 percent.

• Operating revenues totaled nearly $5.6 billion, up 4 percent.

• Operating income totaled $1.96 billion, up 10 percent.

• Operating ratio of 64.8 percent improved 1.8 points.

Omaha, Neb., October 17, 2013– Union Pacific Corporation (NYSE: UNP) today reported 2013 third quarter net income of $1.15 billion, or $2.48 per diluted share, compared to $1 billion, or $2.19 per diluted share, in the third quarter 2012.

“Union Pacific achieved all-time record financial results this quarter,” said Jack Koraleski, Union Pacific chief executive officer. “Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise. When combined with real core pricing and productivity gains, we more than offset flat volumes to generate a new, best-ever quarterly Operating Ratio of 64.8 percent.”

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Third Quarter Summary

Operating revenue increased 4 percent in the third quarter 2013 to nearly $5.6 billion versus $5.3 billion in the third quarter 2012. Third quarter business volumes, as measured by total revenue carloads, were flat compared to 2012. Volume growth from industrial products, automotive, and chemical shipments was offset by declines in coal, agricultural products, and intermodal shipments. In addition:

• Quarterly freight revenue increased 5 percent compared to the third quarter 2012, mainly driven by core pricing gains.

• Union Pacific’s operating ratio of 64.8 percent was a best-ever quarterly record, 1.8 points better than the third quarter 2012 and 0.9 points better than the previous quarterly record set in the second quarter 2013.

• The average quarterly diesel fuel price of $3.17 per gallon in the third quarter 2013 was down 1 percent compared to the third quarter 2012.

• The Customer Satisfaction Index of 93 was one point lower than the third quarter 2012.

• Quarterly train speed, as reported to the Association of American Railroads, was 26.3 mph, improving 1 percent versus the third quarter 2012.

• Lost revenue and increased costs from the flooding in Colorado negatively impacted operating income by about $10 million.

• The Company repurchased nearly 3.7 million shares in the third quarter 2013 at an average share price of $156.77 and an aggregate cost of $575 million.

Summary of Third Quarter Freight Revenues

• Automotive up 17 percent

• Industrial Products up 11 percent

• Chemicals up 5 percent

• Coal up 2 percent

• Intermodal flat

• Agricultural down 2 percent

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2013 Outlook

“As we move through the fourth quarter, we continue to monitor the economic landscape,” Koraleski said. “Supported by our diverse franchise, we remain agile and well positioned for economic recovery. We’ll continue to focus on running a safe, efficient, and reliable network that generates greater value for both our customers and shareholders going forward.”

About Union Pacific

Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America’s most recognized companies, Union Pacific Railroad links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2012, Union Pacific invested $18 billion in its network and operations to support America’s transportation infrastructure, including a record $3.7 billion in 2012. The railroad’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates 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. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.

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

Media contact is Tom Lange, (402) 544-3560.

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 future economic improvement and its ability to capitalize on any future economic improvement; provide safe, efficient and reliable service; maintain agility; and generate value for its customers and 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 2012, which was filed with the SEC on February 8, 2013. 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,	2013	2012	%	2013	2012	%
Operating Revenues
Freight revenues	$  5,250	$  5,019	5 %	$  15,387	$  14,755	4 %
Other revenues	323	324	-	946	921	3
Total operating revenues	5,573	5,343	4	16,333	15,676	4
Operating Expenses
Compensation and benefits	1,196	1,188	1	3,597	3,550	1
Fuel	866	880	(2)	2,629	2,688	(2)
Purchased services and materials	588	542	8	1,730	1,610	7
Depreciation	447	447	-	1,319	1,307	1
Equipment and other rents	309	300	3	924	895	3
Other	205	200	3	661	606	9
Total operating expenses	3,611	3,557	2	10,860	10,656	2
Operating Income	1,962	1,786	10	5,473	5,020	9
Other income	28	28	-	91	65	40
Interest expense	(138)	(137)	1	(399)	(407)	(2)
Income before income taxes	1,852	1,677	10	5,165	4,678	10
Income taxes	(701)	(635)	10	(1,951)	(1,771)	10
Net Income	$  1,151	$  1,042	10 %	$    3,214	$    2,907	11 %
Share and Per Share
Earnings per share - basic	$    2.49	$    2.21	13 %	$      6.91	$      6.13	13 %
Earnings per share - diluted	$    2.48	$    2.19	13	$      6.88	$      6.08	13
Weighted average number of shares - basic	461.7	472.0	(2)	465.0	474.5	(2)
Weighted average number of shares - diluted	464.2	475.2	(2)	467.4	477.9	(2)
Dividends declared per share	$    0.79	$    0.60	32	$      2.17	$      1.80	21
Operating Ratio	64.8%	66.6%	(1.8) pts	66.5%	68.0%	(1.5) pts
Effective Tax Rate	37.9%	37.9%	- pts	37.8%	37.9%	(0.1) 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,	2013		2012		%		2013		2012		%
Freight Revenues (Millions)
Agricultural	$	771	$	783		(2) %	$	2,339	$	2,495		(6) %
Automotive		512		436		17		1,533		1,341		14
Chemicals		883		841		5		2,646		2,404		10
Coal		1,082		1,058		2		2,993		2,922		2
Industrial Products		975		879		11		2,868		2,659		8
Intermodal		1,027		1,022		-		3,008		2,934		3
Total	$	5,250	$	5,019		5  %	$	15,387	$	14,755		4  %
Revenue Carloads (Thousands)
Agricultural		210		218		(4) %		631		685		(8) %
Automotive		195		181		8		576		551		5
Chemicals		282		275		3		840		777		8
Coal		468		501		(7)		1,284		1,408		(9)
Industrial Products		325		299		9		931		905		3
Intermodal*		848		857		(1)		2,480		2,481		-
Total		2,328		2,331		-  %		6,742		6,807		(1) %
Average Revenue per Car
Agricultural	$	3,679	$	3,596		2  %	$	3,707	$	3,643		2  %
Automotive		2,620		2,407		9		2,661		2,435		9
Chemicals		3,134		3,064		2		3,151		3,094		2
Coal		2,312		2,111		10		2,331		2,075		12
Industrial Products		2,998		2,933		2		3,080		2,938		5
Intermodal*		1,211		1,192		2		1,213		1,182		3
Average	$	2,255	$	2,153		5  %	$	2,282	$	2,168		5  %

* 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,  2013		Dec. 31,  2012
Assets
Cash and cash equivalents	$	1,366	$	1,063
Other current assets		2,698		2,551
Investments		1,282		1,259
Net properties		43,311		41,997
Other assets		301		283
Total assets	$	48,958	$	47,153
Liabilities and Common Shareholders’ Equity
Debt due within one year	$	691	$	196
Other current liabilities		2,964		2,923
Debt due after one year		8,764		8,801
Deferred income taxes		13,739		13,108
Other long-term liabilities		2,026		2,248
Total liabilities		28,184		27,276
Total common shareholders’ equity		20,774		19,877
Total liabilities and common shareholders’ equity	$	48,958	$	47,153
Debt to Capital		31.3%		31.2%
Adjusted Debt to Capital*		38.5%		39.1%

* 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,	2013		2012
Operating Activities
Net income	$	3,214	$	2,907
Depreciation		1,319		1,307
Deferred income taxes		637		490
Other - net		(289)		(338)
Cash provided by operating activities		4,881		4,366
Investing Activities
Capital investments		(2,635)		(2,876)
Other - net		39		10
Cash used in investing activities		(2,596)		(2,866)
Financing Activities
Common shares repurchased		(1,432)		(1,179)
Dividends paid		(968)		(860)
Debt issued		944		695
Debt exchange		(288)		-
Debt repaid		(217)		(250)
Other - net		(21)		7
Cash used in financing activities		(1,982)		(1,587)
Net Change in Cash and Cash Equivalents		303		(87)
Cash and cash equivalents at beginning of year		1,063		1,217
Cash and Cash Equivalents End of Period	$	1,366	$	1,130
Free Cash Flow*
Cash provided by operating activities	$	4,881	$	4,366
Cash used in investing activities		(2,596)		(2,866)
Dividends paid		(968)		(860)
Free cash flow	$	1,317	$	640

* 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,	2013		2012		%			2013		2012		%
Operating/Performance Statistics
Gross ton-miles (GTMs) (millions)		241,350		245,415		(2)	%		704,434		720,382		(2)	%
Employees (average)		46,605		46,205		1			46,610		45,882		2
GTMs (millions) per employee		5.18		5.31		(2)			15.11		15.70		(4)
Customer satisfaction index		93		94		(1)	pt		93		93		-	pts
Locomotive Fuel Statistics
Average fuel price per gallon consumed		$      3.17		$      3.19		(1)	%		$      3.17		$      3.21		(1)	%
Fuel consumed in gallons (millions)		265		267		(1)			808		811		-
Fuel consumption rate*		1.098		1.084		1			1.147		1.125		2
AAR Reported Performance Measures
Average train speed (miles per hour)		26.3		26.1		1	%		26.1		26.4		(1)	%
Average terminal dwell time (hours)		26.3		26.0		1			26.8		26.0		3
Average rail car inventory (thousands)		258.5		268.0		(4)			261.2		270.7		(4)
Revenue Ton-Miles (Millions)
Agricultural		18,452		19,349		(5)	%		56,707		62,470		(9)	%
Automotive		3,995		3,596		11			11,931		11,113		7
Chemicals		18,541		17,608		5			56,211		50,446		11
Coal		51,325		55,468		(7)			141,037		156,169		(10)
Industrial Products		19,665		17,772		11			58,237		53,915		8
Intermodal		19,305		19,513		(1)			58,537		58,529		-
Total		131,283		133,306		(2)	%		382,660		392,642		(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)

	2013
Millions, Except Per Share Amounts and Percentages	1st Qtr		2nd Qtr		3rd Qtr		Year-to-Date
Operating Revenues
Freight revenues		$    4,984		$    5,153		$    5,250		$    15,387
Other revenues		306		317		323		946
Total operating revenues		5,290		5,470		5,573		16,333
Operating Expenses
Compensation and benefits		1,216		1,185		1,196		3,597
Fuel		900		863		866		2,629
Purchased services and materials		557		585		588		1,730
Depreciation		434		438		447		1,319
Equipment and other rents		313		302		309		924
Other		237		219		205		661
Total operating expenses		3,657		3,592		3,611		10,860
Operating Income		1,633		1,878		1,962		5,473
Other income		40		23		28		91
Interest expense		(128)		(133)		(138)		(399)
Income before income taxes		1,545		1,768		1,852		5,165
Income tax expense		(588)		(662)		(701)		(1,951)
Net Income		$       957		$    1,106		$    1,151		$      3,214
Share and Per Share
Earnings per share - basic		$      2.05		$      2.38		$      2.49		$        6.91
Earnings per share - diluted		$      2.03		$      2.37		$      2.48		$        6.88
Weighted average number of shares - basic		467.8		465.3		461.7		465.0
Weighted average number of shares - diluted		470.5		467.6		464.2		467.4
Dividends declared per share		$      0.69		$      0.69		$      0.79		$        2.17
Operating Ratio		69.1%		65.7%		64.8%		66.5%
Effective Tax Rate		38.1%		37.4%		37.9%		37.8%

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UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)

	2013
	1st Qtr		2nd Qtr		3rd Qtr		Year-to-Date
Freight Revenues (Millions)
Agricultural		$      784		$      784		$      771		$      2,339
Automotive		487		534		512		1,533
Chemicals		873		890		883		2,646
Coal		936		975		1,082		2,993
Industrial Products		916		977		975		2,868
Intermodal		988		993		1,027		3,008
Total		$    4,984		$    5,153		$    5,250		$    15,387
Revenue Carloads (Thousands)
Agricultural		212		209		210		631
Automotive		184		197		195		576
Chemicals		271		287		282		840
Coal		402		414		468		1,284
Industrial Products		289		317		325		931
Intermodal*		810		822		848		2,480
Total		2,168		2,246		2,328		6,742
Average Revenue per Car
Agricultural		$    3,694		$    3,750		$    3,679		$      3,707
Automotive		2,648		2,715		2,620		2,661
Chemicals		3,225		3,098		3,134		3,151
Coal		2,329		2,353		2,312		2,331
Industrial Products		3,174		3,079		2,998		3,080
Intermodal*		1,219		1,210		1,211		1,213
Average		$    2,299		$    2,295		$    2,255		$      2,282

* 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,  2013		Dec. 31,  2012
Debt (a)	$	9,455	$	8,997
Equity		20,774		19,877
Capital (b)	$	30,229	$	28,874
Debt to capital (a/b)		31.3%		31.2%

* 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,  2013		Dec. 31,  2012
Debt	$	9,455	$	8,997
Net present value of operating leases		3,027		3,096
Unfunded pension and OPEB		543		679
Adjusted debt (a)		13,025		12,772
Equity		20,774		19,877
Adjusted capital (b)	$	33,799	$	32,649
Adjusted debt to capital (a/b)		38.5%		39.1%

* 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 5.7% at September 30, 2013 and 6.0% at December 31, 2012. The discount rate reflects our effective interest rate. 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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