EXHIBIT 99
UNION PACIFIC POSTS RECORD QUARTER
EARNINGS PER SHARE UP 19 PERCENT ON RECORD NET INCOME
OMAHA, NE, APRIL 25 - UNION PACIFIC CORPORATION TODAY REPORTED A 19
PERCENT INCREASE IN EARNINGS PER SHARE TO $.86 PER DILUTED SHARE ON RECORD FIRST
QUARTER NET INCOME OF $222 MILLION. THIS COMPARES TO NET INCOME OF $181 MILLION,
OR $.72 PER DILUTED SHARE IN THE FIRST QUARTER OF 2001.
"UNION PACIFIC PRODUCED QUALITY EARNINGS WITH ANOTHER STRONG QUARTER OF
PERFORMANCE," SAID DICK DAVIDSON, CHAIRMAN AND CHIEF EXECUTIVE OFFICER. "WE
MANAGED TO STAY THE COURSE IN A ROUGH ECONOMY. WE ACHIEVED DOUBLE-DIGIT GROWTH
IN EARNINGS PER SHARE DESPITE OPERATING REVENUES THAT WERE EVEN YEAR-OVER-YEAR.
EMPLOYEE PRODUCTIVITY AT THE RAILROAD WAS AT A RECORD LEVEL IN THE FIRST QUARTER
AND RAILROAD CUSTOMER SATISFACTION IS AT AN ALL-TIME HIGH."
FIRST QUARTER HIGHLIGHTS
UNION PACIFIC CORPORATION, EXCLUDING OVERNITE CORPORATION, REPORTED
RECORD FIRST QUARTER OPERATING INCOME OF $489 MILLION COMPARED TO $430 MILLION
FOR THE SAME PERIOD IN 2001 - A 14 PERCENT INCREASE.
o OPERATING RATIO (OPERATING EXPENSES/OPERATING REVENUE) IMPROVED 2.2
PERCENTAGE POINTS TO A FIRST-QUARTER RECORD 81.6 PERCENT
o EMPLOYEE PRODUCTIVITY (GROSS TON-MILES/EMPLOYEE) INCREASED 7% TO A FIRST
QUARTER RECORD LEVEL
-M O R E-
-2-
o FUEL AND UTILITIES COSTS FELL 33 PERCENT ON DECLINING PRICES
o RECORD SAFETY PERFORMANCE
FIRST QUARTER RAILROAD COMMODITY REVENUE SUMMARY VERSUS 2001
o AUTOMOTIVE REVENUE WAS UP 2 PERCENT
o INTERMODAL POSTED A 1 PERCENT GAIN
o AGRICULTURAL AND INDUSTRIAL PRODUCTS WERE FLAT
o THE OTHER COMMODITIES EXPERIENCED SLIGHT REVENUE DECLINES DURING THE QUARTER
WITH ENERGY DOWN 2 PERCENT AND CHEMICALS DOWN 1 PERCENT
"UNION PACIFIC AGAIN DEMONSTRATED THE STRENGTH OF ITS FRANCHISE WITH A
BALANCED MIX OF REVENUE," DAVIDSON SAID. "WHILE THE ECONOMY REMAINS A WILD CARD
FOR AMERICAN INDUSTRY, OUR EMPLOYEES CONTINUE TO FOCUS ON QUALITY PROCESSES THAT
IMPROVE PRODUCTIVITY AND PROVIDE OUR CUSTOMERS WITH EXCELLENT SERVICE."
OVERNITE CORPORATION
OVERNITE CORPORATION REPORTED FIRST QUARTER OPERATING INCOME OF $10.5
MILLION, ESSENTIALLY FLAT WITH 2001 ON A PRO FORMA BASIS. (PRO FORMA RESULTS FOR
2001 INCLUDE $1.9 MILLION OF OPERATING INCOME FROM MOTOR CARGO, WHICH WAS
ACQUIRED ON NOVEMBER 30, 2001.) OPERATING REVENUE DECREASED 3 PERCENT TO $304.9
MILLION FROM $313.2 MILLION LAST YEAR. OVERNITE'S OPERATING RATIO DECREASED 0.1
PERCENTAGE POINT TO 96.6 PERCENT.
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
-M O R E-
-3-
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, UNION PACIFIC HAS THE PREMIER RAIL FRANCHISE IN NORTH AMERICA. THE
CORPORATION'S TRUCKING OPERATIONS INCLUDE OVERNITE CORPORATION WHICH OWNS ITS
LESS-THAN-TRUCKLOAD CARRIERS, OVERNITE TRANSPORTATION AND MOTOR CARGO.
SUPPLEMENTAL FINANCIAL INFORMATION IS ATTACHED.
ADDITIONAL INFORMATION IS AVAILABLE AT OUR WEBSITE: WWW.UP.COM. OUR
CONTACT FOR INVESTORS IS JENNIFER HAMANN AT (402) 271-4227. OUR MEDIA CONTACTS
ARE KATHRYN BLACKWELL AT (402) 271-3753 OR JOHN BROMLEY AT (402) 271-3475.
**********
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
- M O R E-
-4-
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; ANY ADVERSE ECONOMIC OR OPERATIONAL REPERCUSSIONS FROM TERRORIST
ACTIVITIES AND ANY GOVERNMENT RESPONSE THERETO; 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.
UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended March 31
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
<Table>
<Caption>
2002 a) 2001 Pct Chg
------- ------- -------
OPERATING REVENUES $ 2,967 $ 2,943 + 1
Operating Expenses 2,468 2,504 - 1
------- -------
OPERATING INCOME 499 439 + 14
Other Income - Net 21 30 - 30
Interest Expense (163) (181) - 10
------- -------
INCOME BEFORE INCOME TAXES 357 288 + 24
Income Tax Expense (135) (107) + 26
------- -------
NET INCOME $ 222 $ 181 + 23
------- -------
BASIC EARNINGS PER SHARE $ 0.89 $ 0.73 + 22
DILUTED EARNINGS PER SHARE $ 0.86 $ 0.72 + 19
Average Basic Shares Outstanding (MM) 251.0 246.9
Average Diluted Shares Outstanding (MM) 276.2 271.0
</Table>
a) Includes the results of Motor Cargo, acquired November 30, 2001. Motor
Cargo contributed revenues of $32 million, operating expense of $31 million
and operating income of $1 million during the first quarter of 2002.
April 25, 2002 (1)
UNION PACIFIC RAILROAD
REVENUE DETAIL
For the Three Months Ended March 31
(Unaudited)
<Table>
<Caption>
2002 2001 Pct Chg
---------- ---------- ----------
COMMODITY REVENUE (000):
Agricultural $ 368,733 $ 370,279 --
Automotive 282,504 275,639 + 2
Chemicals 385,168 389,761 - 1
Energy 582,213 593,341 - 2
Industrial Products 473,741 471,960 --
Intermodal 455,216 450,100 + 1
---------- ----------
Total $2,547,575 $2,551,080 --
========== ==========
REVENUE CARLOADS:
Agricultural 218,507 219,393 --
Automotive 193,187 185,447 + 4
Chemicals 217,449 219,165 - 1
Energy 545,230 536,546 + 2
Industrial Products 322,454 335,827 - 4
Intermodal 681,169 682,675 --
---------- ----------
Total 2,177,996 2,179,053 --
========== ==========
AVERAGE REVENUE PER CAR:
Agricultural $ 1,688 $ 1,688 --
Automotive 1,462 1,486 - 2
Chemicals 1,771 1,778 --
Energy 1,068 1,106 - 3
Industrial Products 1,469 1,405 + 5
Intermodal 668 659 + 1
---------- ----------
Total $ 1,170 $ 1,171 --
========== ==========
</Table>
April 25, 2002 (2)
RAIL AND OTHER OPERATIONS - a)
REVIEW OF OPERATIONS
For the Three Months Ended March 31
(Dollars in Millions, Except Operating Statistics)
(Unaudited)
<Table>
<Caption>
2002 2001 Pct Chg
---------- ---------- ----------
OPERATING REVENUES $ 2,662 $ 2,663 --
OPERATING EXPENSES
Salaries and Benefits 913 914 --
Rent Expense 315 307 + 3
Depreciation 284 280 + 1
Fuel and Utilities 225 334 - 33
Materials and Supplies 121 126 - 4
Other 315 272 + 16
========== ==========
Total 2,173 2,233 - 3
---------- ----------
OPERATING INCOME $ 489 $ 430 + 14
========== ==========
OPERATING STATISTICS:
Revenue Carloads (Thousands) 2,178 2,179 --
Revenue Ton-Miles (Billions) 127.0 123.7 + 3
Gross Ton-Miles (Billions) 240.0 232.2 + 3
Rev/RTM (Commodity Revenue Based) 2.01(cent) 2.06(cent)- 2
Average Commodity Revenue Per Car $ 1,170 $ 1,171 --
Average Employees 47,236 48,760 - 3
Average Fuel Price Per Gallon 61(cent) 92(cent)- 34
Fuel Consumed in Gallons (MM) 321 322 --
Fuel Consumption Rate (Gal/000 GTM) 1.34 1.39 - 4
Operating Ratio (%) 81.6 83.8 - 2.2 pt.
</Table>
a) Excludes Overnite's operations.
April 25, 2002 (3)
OVERNITE CORPORATION
REVIEW OF OPERATIONS - PRO FORMA
For the Three Months Ended March 31
(Dollars in Millions, Except Operating Statistics)
(Unaudited)
<Table>
<Caption>
2002 2001 a) Pct Chg
---------- ---------- ----------
OPERATING REVENUES $ 304.9 $ 313.2 - 3
OPERATING EXPENSES
Salaries and Benefits 192.2 188.1 + 2
Rent Expense 25.8 25.2 + 2
Depreciation 15.0 14.0 + 7
Fuel and Utilities 15.1 20.9 - 28
Materials and Supplies 12.2 14.0 - 13
Other 34.1 40.5 - 16
========== ==========
Total 294.4 302.7 - 3
---------- ----------
OPERATING INCOME $ 10.5 $ 10.5 --
========== ==========
OPERATING STATISTICS:
Millions of Pounds Hauled - LTL 2,022 2,057 - 2
Millions of Pounds Hauled - Combined 2,216 2,239 - 1
Revenue/CWT - LTL $ 13.83 $ 13.92 - 1
Revenue/CWT - Combined $ 13.20 $ 13.35 - 1
Average Employees 13,158 13,488 - 2
Average Fuel Price Per Gallon 64(cent) 90(cent)- 29
Fuel Consumed in Gallons (000s) 15,418 16,550 - 7
Operating Ratio (%) 96.6 96.7 - 0.1 pt.
</Table>
a) Includes the pro forma effects of the Motor Cargo acquisition, as if the
acquisition had been effective January 1, 2001. The actual results of
Overnite Transportation Company for the first quarter of 2001 were as
follows: Revenues - $280.2, Operating Expenses - $271.6, and Operating
Income $8.6.
April 25, 2002 (4)
UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED FINANCIAL POSITION
As of March 31, 2002 and December 31, 2001
(Dollars in Millions)
(Unaudited)
<Table>
<Caption>
March 31, December 31,
2002 2001
--------- ------------
ASSETS:
Cash and Temporary Investments $ 110 $ 113
Other Current Assets 1,536 1,429
Investments 801 786
Properties - Net 28,855 28,792
Other Assets 578 431
--------- ------------
Total $ 31,880 $ 31,551
========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Portion of Long Term Debt $ 203 $ 194
Other Current Liabilities 2,359 2,498
Long Term Debt 8,006 7,886
Deferred Income Taxes 7,990 7,882
Other Long Term Liabilities 1,986 2,016
Convertible Preferred Shares 1,500 1,500
Common Shareholders' Equity 9,836 9,575
--------- ------------
Total $ 31,880 $ 31,551
========= ============
</Table>
April 25, 2002 (5)
UNION PACIFIC CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended March 31
(Dollars in Millions)
(Unaudited)
<Table>
<Caption>
2002 2001
-------- --------
OPERATING ACTIVITIES:
Net Income $ 222 $ 181
Depreciation 299 292
Deferred Income Taxes 90 77
Other (266) (334)
-------- --------
Cash Provided by Operating Activities 345 216
-------- --------
INVESTING ACTIVITIES:
Capital Investments (359) (361)
Other (126) (144)
-------- --------
Cash Used in Investing Activities (485) (505)
-------- --------
FINANCING ACTIVITIES:
Dividends Paid (50) (49)
Debt Repaid (301) (214)
Financings and Other - Net 488 520
-------- --------
Cash Provided by (Used in) Financing Activities 137 257
-------- --------
NET CHANGE IN CASH AND TEMPORARY INVESTMENTS $ (3) $ (32)
======== ========
</Table>
April 25, 2002 (6)