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EXHIBIT 99
UNION PACIFIC ANNOUNCES SECOND QUARTER RESULTS
FOR IMMEDIATE RELEASE:
Omaha, NE, July 19 - Union Pacific Corporation today reported net
income for the second quarter of $243 million, or $.95 per diluted share. This
compares to net income of $244 million, or $.96 per diluted share, in the second
quarter of 2000.
In commenting on the company's performance, Dick Davidson, chairman and
chief executive officer, said, "The benefits of our diverse franchise were
evident in the second quarter. Strength in Energy and Agricultural traffic,
coupled with strong real estate sales, helped to offset the challenges of a soft
economy and continued high fuel prices as well as floods in key areas of our
service territory. Despite this difficult near-term environment, we remain
committed to improving the quality of service to customers. The entire Union
Pacific Team continues to be focused on improving yields and driving
productivity while positioning our company to leverage our strengths when the
economy eventually improves."
For the second quarter, Union Pacific Corporation, excluding Overnite,
reported operating income of $478 million compared to $526 million for the same
period in 2000. The Railroad's commodity revenue increased to $2.6 billion for
the quarter as average revenue per car was up 2 percent. Energy continued to be
strong, with revenue growth of 18 percent, while agricultural revenues showed a
3 percent gain. The economically sensitive commodities all declined with
industrial
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Products down 1 percent, Intermodal and Automotive each down 2 percent and
Chemicals down 9 percent. The operating ratio was up 1.9 percentage points to
82.3 percent from 80.4 percent in second quarter 2000. Key factors behind the
increase were a 10 percent surge in fuel prices over 2000 levels and additional
costs due to flooding in both Houston and the upper Midwest.
Overnite Transportation reported second quarter operating income of $16
million compared to $17 million in the second quarter of 2000. Revenue increased
2 percent to $290 million from $283 million, while Overnite's operating ratio
increased 0.5 percentage points to 94.6 percent.
For the first half of 2001, the Corporation reported operating income
of $933 million and net income of $424 million compared to operating income of
$994 million and net income of $429 million for the same period in 2000.
Union Pacific Corporation is one of America's leading transportation
companies. Its principal operating company, Union Pacific Railroad, is the
largest railroad in North America, covering 23 states across the western
two-thirds of the United States. A strong focus on quality and a strategically
advantageous route structure enable the company to serve customers in critical
and fast growing markets. It is a leading carrier of low-sulfur coal used in
electrical power generation and has broad coverage of the large
chemical-producing areas along the Gulf Coast. With competitive long-haul routes
between all major West Coast ports and eastern gateways, and as the only
railroad to serve all six gateways to Mexico,
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Union Pacific has the premier rail franchise in North America. The Corporation
also owns Overnite Transportation, a nationwide less-than-truckload carrier, and
Fenix, a group of affiliated technology companies.
Supplemental financial information is attached.
Additional information is available at our website: www.up.com. Our
contact for investors is Beth Whited at 402 271-4227. Our media contact is John
Bromley who can be reached at 402 271-3475.
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This press release and related materials may contain statements about
the Corporation's future that are not statements of historical fact. These
statements are "forward-looking statements" for purposes of applicable
securities laws, and are based on current information and/or management's good
faith belief as to future events. Forward-looking statements include, without
limitation, projections and estimates of earnings, revenues, cost-savings,
expenses, or other financial items; statements of management's plans, strategies
and objectives for future operation, and management's expectations as to future
performance and operations and the time by which objectives will be achieved;
statements concerning proposed new products and services; and statements
regarding future economic or market conditions or performance.
Forward-looking statements are subject to risks and uncertainties.
Actual performance or results could differ materially from that anticipated by
the forward-looking statement. Important factors that could cause such
differences include, but are not limited to, the Corporation's success in
implementing its financial and operational initiatives; the impact of industry
competition, conditions, performance and consolidation; legislative and/or
regulatory developments, including initiatives to re-regulate the rail business;
natural events such as severe weather, floods and earthquakes; adverse general
economic conditions, both within the United States and globally; changes in fuel
prices; changes in labor costs; labor stoppages; and the outcome of claims and
litigation.
Forward-looking statements speak only as of the date the statement was
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 any forward-looking statement, no inference should be drawn that the
Corporation will make additional updates with respect to that statement or any
other forward-looking statements.
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UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended June 30
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
2001 2000 Pct Chg
------- ------- ------------
OPERATING REVENUES $ 2,998 $ 2,966 + 1
Operating Expenses 2,504 2,424 + 3
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OPERATING INCOME 494 542 -- 9
Other Income - Net 75 24 F
Interest Expense (178) (180) -- 1
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INCOME BEFORE INCOME TAXES 391 386 + 1
Income Tax Expense (148) (142) + 4
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NET INCOME $ 243 $ 244 --
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BASIC EARNINGS PER SHARE $ 0.98 $ 0.99 -- 1
DILUTED EARNINGS PER SHARE $ 0.95 $ 0.96 -- 1
Average Basic Shares Outstanding (MM) 247.7 246.4
Average Diluted Shares Outstanding (MM) 271.9 269.4
July 19, 2001
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UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
For the Six Months Ended June 30
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
2001 2000 Pct Chg
------- ------- -------------
OPERATING REVENUES $ 5,941 $ 5,872 + 1
Operating Expenses 5,008 4,878 + 3
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OPERATING INCOME 933 994 -- 6
Other Income - Net 105 44 F
Interest Expense (359) (362) -- 1
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INCOME BEFORE INCOME TAXES 679 676 --
Income Tax Expense (255) (247) + 3
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NET INCOME $ 424 $ 429 -- 1
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BASIC EARNINGS PER SHARE $ 1.71 $ 1.74 -- 2
DILUTED EARNINGS PER SHARE $ 1.67 $ 1.70 -- 2
Average Basic Shares Outstanding (MM) 247.3 246.4
Average Diluted Shares Outstanding (MM) 271.4 269.4
July 19, 2001
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UNION PACIFIC RAILROAD
REVENUE DETAIL
Periods Ended June 30
(Unaudited)
Second Quarter Year-to-Date
2001 2000 Pct Chg 2001 2000 Pct Chg
- ---------- ---------- --------- ---------- ---------- -----------
COMMODITY REVENUE (000):
$ 344,468 $ 334,293 + 3 Agricultural $ 714,256 $ 683,787 + 4
301,037 307,039 -- 2 Automotive 576,676 597,175 -- 3
387,553 424,175 -- 9 Chemicals 777,805 836,117 -- 7
576,877 489,959 + 18 Energy 1,170,218 1,019,054 + 15
522,327 525,250 -- 1 Industrial Products 994,287 1,017,296 -- 2
462,269 470,842 -- 2 Intermodal 912,369 911,899 --
- ---------- ---------- ---------- ----------
$2,594,531 $2,551,558 + 2 Total $5,145,611 $5,065,328 + 2
========== ========== ========== ==========
REVENUE CARLOADS:
211,082 213,250 -- 1 Agricultural 430,237 434,238 -- 1
198,828 213,593 -- 7 Automotive 384,275 412,855 -- 7
221,647 243,611 -- 9 Chemicals 441,050 475,407 -- 7
516,479 439,233 + 18 Energy 1,053,025 919,046 + 15
374,243 375,741 -- Industrial Products 710,070 730,597 -- 3
688,784 727,441 -- 5 Intermodal 1,371,459 1,414,476 -- 3
- ---------- ---------- ---------- ----------
2,211,063 2,212,869 -- Total 4,390,116 4,386,619 --
========== ========== ========== ==========
AVERAGE REVENUE PER CAR:
$ 1,632 $ 1,568 + 4 Agricultural $ 1,660 $ 1,575 + 5
1,514 1,437 + 5 Automotive 1,501 1,446 + 4
1,749 1,741 -- Chemicals 1,764 1,759 --
1,117 1,115 -- Energy 1,111 1,109 --
1,396 1,398 -- Industrial Products 1,400 1,392 + 1
671 647 + 4 Intermodal 665 645 + 3
- ---------- ---------- ---------- ----------
$ 1,173 $ 1,153 + 2 Total $ 1,172 $ 1,155 + 1
========== ========== ========== ==========
July 19, 2001
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RAIL AND OTHER OPERATIONS - a)
REVIEW OF OPERATIONS
Periods Ended June 30
(Dollars in Millions, Except Operating Statistics)
(Unaudited)
Second Quarter Year-to-Date
2001 2000 Pct Chg 2001 2000 Pct Chg
- ---------- ---------- ----------- ---------- ----------- ---------
$ 2,708 $ 2,683 + 1 OPERATING REVENUES $ 5,371 $ 5,320 + 1
OPERATING EXPENSES
888 875 + 1 Salaries and Benefits 1,802 1,775 + 2
307 286 + 7 Rent Expense 614 578 + 6
281 271 + 4 Depreciation 561 541 + 4
321 294 + 9 Fuel and Utilities 655 587 + 12
133 142 -- 6 Materials and Supplies 259 287 -- 10
300 289 + 4 Other 572 575 -- 1
- ---------- ---------- ---------- ----------
2,230 2,157 + 3 Total 4,463 4,343 + 3
- ---------- ---------- ---------- ----------
$ 478 $ 526 -- 9 OPERATING INCOME $ 908 $ 977 -- 7
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OPERATING STATISTICS:
2,211 2,213 -- Revenue Carloads(Thousands) 4,390 4,387 --
124,028 117,827 + 5 Revenue Ton-Miles(Millions) 247,746 239,070 + 4
235,473 227,322 + 4 Gross Ton-Miles(Millions) 467,653 459,339 + 2
2.09c. 2.17c. -- 4 Rev/RTM(Commodity Revenue Based) 2.08c. 2.12c. -- 2
$ 1,173 $ 1,153 + 2 Average Commodity Revenue Per Car $ 1,172 $ 1,155 + 1
49,491 50,948 -- 3 Average Employees 49,126 50,857 -- 3
92c. 84c. + 10 Average Fuel Price Per Gallon 92c. 82c. + 12
318 319 -- Fuel Consumed in Gallons(MM) 640 643 --
1.350 1.402 -- 4 Fuel Consumption Rate Gal/000 GTM) 1.369 1.399 -- 2
82.3 80.4 + 1.9 pt. Operating Ratio(%) 83.1 81.6 + 1.5 pt.
a) Excludes Overnite's operations.
July 19, 2001
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OVERNITE TRANSPORTATION COMPANY
REVIEW OF OPERATIONS
Periods Ended June 30
(Dollars in Millions, Except Operating Statistics)
(Unaudited)
Second Quarter Year-to-Date
2001 2000 Pct Chg 2001 2000 Pct Chg
- ------- ------- ------------- ------- ------- -----------
$ 290 $ 283 + 2 OPERATING REVENUES $ 570 $ 552 + 3
OPERATING EXPENSES
175 165 + 6 Salaries and Benefits 346 330 + 5
24 24 -- Rent Expense 46 47 -- 2
12 12 -- Depreciation 24 24 --
17 17 -- Fuel and Utilities 35 35 --
12 12 -- Materials and Supplies 25 24 + 4
34 36 -- 6 Other 69 75 -- 8
- ------- ------- ------ -------
274 266 + 3 Total 545 535 + 2
- ------- ------- ------ -------
$ 16 $ 17 -- 6 OPERATING INCOME $ 25 $ 17 + 47
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OPERATING STATISTICS:
1,917 1,927 -- 1 Millions of Pounds Hauled - LTL 3,758 3,783 -- 1
2,036 2,062 -- 1 Millions of Pounds Hauled - Combined 4,000 4,039 -- 1
$ 14.00 $ 13.51 + 4 Revenue/CWT - LTL $ 14.02 $ 13.48 + 4
$ 13.66 $ 13.10 + 4 Revenue/CWT - Combined $ 13.63 $ 13.05 + 4
11,548 11,182 + 3 Average Employees 11,487 11,142 + 3
88c. 83c. + 6 Average Fuel Price Per Gallon 89c. 84c. + 6
14,320 14,453 -- 1 Fuel Consumed in Gallons (000s) 29,174 28,946 + 1
94.6 94.1 + 0.5 pt. Operating Ratio (%) 95.8 96.9 -- 1.1 pt.
July 19, 2001
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UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
As of June 30, 2001 and December 31, 2000
(Dollars in Millions)
(Unaudited)
June 30, December 31,
2001 2000
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ASSETS:
Cash and Temporary Investments $ 130 $ 105
Other Current Assets 1,229 1,180
Investments 767 740
Properties - Net 28,425 28,196
Other Assets 440 278
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Total $30,991 $30,499
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Portion of Long Term Debt $ 200 $ 207
Other Current Liabilities 2,558 2,755
Long Term Debt 8,299 8,144
Deferred Income Taxes 7,377 7,143
Other Long Term Liabilities 2,024 2,088
Convertible Preferred Shares 1,500 1,500
Common Shareholders' Equity 9,033 8,662
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Total $30,991 $30,499
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July 19, 2001
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UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended June 30
(Dollars in Millions)
(Unaudited)
2001 2000
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OPERATING ACTIVITIES:
Net Income $ 424 $ 429
Depreciation 585 565
Deferred Income Taxes 203 200
Other (369) (160)
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Cash Provided by Operating Activities 843 1,034
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INVESTING ACTIVITIES:
Capital Investments (792) (817)
Other (111) (155)
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Cash Used in Investing Activities (903) (972)
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FINANCING ACTIVITIES:
Dividends Paid (99) (101)
Debt Repaid (439) (539)
Financings and Other - Net 623 475
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Cash Provided by (Used in) Financing Activities 85 (165)
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NET CHANGE IN CASH AND TEMPORARY INVESTMENTS $ 25 $ (103)
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July 19, 2001