Establishes New “Bests” for Operating Income and Operating Ratio

Omaha, Neb., October 21, 2010 – Union Pacific Corporation (NYSE: UNP) today reported 2010 third quarter net income of $778 million, or $1.56 per diluted share, compared to $514 million, or $1.01 per diluted share, in the third quarter 2009. Third quarter Operating Revenue grew 20 percent to $4.4 billion versus $3.7 billion in the third quarter 2009.

All-Time Quarterly Records

- Diluted earnings per share improved 54 percent to $1.56.
- Operating income totaled $1.4 billion, up 46 percent.
- Net income increased 51 percent to $778 million.
- Operating ratio was 68.2 percent, 5.6 points better than third quarter 2009 and 1.2 points better than the previous record set in the second quarter 2010.
- Customer Satisfaction Index of 90, up 2 points.
"Strong volume growth, pricing gains and operating efficiency combined to produce another record quarter for our Company, " said Jim Young, Union Pacific chairman and chief executive officer. "New 'bests' in both Customer Satisfaction and Operating Ratio demonstrate the solid performance of our operations. As business levels increase on our railroad, we are leveraging our capital investments, delivering on customer commitments and realizing the potential of the UP franchise."

Third Quarter Summary

Third quarter business volumes, as measured by total revenue carloads, grew 14 percent versus 2009's recession-affected levels as all six Union Pacific business groups reported volume growth. Quarterly operating revenue increased 20 percent in the third quarter 2010 to $4.4 billion versus $3.7 billion in the third quarter 2009.  In addition:

All six business groups reported freight revenue growth in the quarter, up 21 percent versus third quarter 2009 to a total of $4.2 billion. Double-digit volume growth, increased fuel cost recoveries and core pricing gains all contributed to the increase.
Quarterly diesel fuel prices increased 20 percent from an average of $1.87 per gallon in the third quarter 2009 to an average of $2.24 per gallon in the third quarter 2010.

Union Pacific's operating ratio was a best-ever 68.2 percent, 5.6 points of improvement versus 2009. Strong volume growth, ongoing efficiency initiatives and quarterly pricing gains drove this record performance.

A Customer Satisfaction Index of 90 was a quarterly best and 2 points better than the third quarter 2009.
Quarterly train speed, as reported to the Association of American Railroads, was 25.7 mph, down 6 percent versus record velocity in the third quarter 2009, reflecting the effects of Hurricane Alex and subsequent flooding in Mexico, which closed the Laredo gateway for nearly the entire month of July.

The Company repurchased more than 7.6 million shares in the third quarter 2010 at an average share price of $73.19, and an aggregate cost of approximately $560 million.
Summary of Third Quarter Freight Revenues

- Automotive up 36 percent.
- Intermodal up 34 percent.
- Industrial Products up 25 percent.
- Agricultural up 16 percent.
- Chemicals up 14 percent.
- Energy up 11 percent.


"As the economy continues to recover, we stand ready to safely and reliably haul more freight," Young said. "Longer term, we believe Union Pacific is positioned to provide strong value for our customers and shareholders, as the long-standing need for freight rail transportation in our nation provides us with a stable foundation as well as a platform for future growth."

About Union Pacific

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.

Supplemental financial information (PDF).
Investor contact is Jennifer Hamann, (402) 544-4227.
Media contact is Donna Kush, (402) 544-3753.


This press release and related materials contain statements about the Corporation's future that are not statements of historical fact, including specifically the statements under the caption "Outlook" in this press release, which include statements regarding the Corporation's expectations with respect to economic conditions; operating performance; future revenue growth; delivering value to its customers and shareholders; and moving customer traffic safely, and reliably. 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 2009, which was filed with the SEC on February 5, 2010. 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.

The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.

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