Union Pacific Provides Third Quarter 2013 Update
OREANDA-NEWS. Union Pacific Corporation (NYSE: UNP) today provided details on its earnings expectations for the third quarter of 2013. The Company expects to report best-ever quarterly earnings in the range of USD 2.45 to USD 2.48 per diluted share, a double-digit increase compared to last year.
Overall volumes were flat in the quarter compared to last year. Mild summer weather combined with disruptions from flooding in Colorado impacted coal volumes, and, to a lesser extent, other commodity shipments. In addition, an uncertain economic environment continues to impact intermodal volumes.
Third Quarter 2013 expectations include:
Operating revenue growth of 4 to 4.5 percent.
Solid core pricing of about 3.5 percent, somewhat negatively impacted by lower coal volumes.
Positive top-line business mix, although less favorable than traffic mix in the second quarter 2013.
Operating ratio improvement of about 1.5 points from third quarter 2012 performance of 66.6 percent.
Lost revenue and increased costs from the flooding in Colorado, expected to negatively impact operating income by roughly USD 10 million.
"Our strong third quarter expectations reflect continued core pricing gains, ongoing productivity initiatives, and strong returns to our shareholders," said Rob Knight, Union Pacific chief financial officer. "In the fourth quarter, we expect these positive trends to continue, and we're hopeful that the economy cooperates and this year's grain harvest meets current projections, enabling year-over-year volume growth."
The Company will report its third quarter 2013 earnings on Thursday, October 17, 2013, at approximately 8:00 a.m. Eastern Time, followed by a conference call that will be broadcast live over the Internet and via teleconference at 8:45 a.m. Eastern Time.
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