Best-Ever Operating Income and Sub-70 Operating Ratio

Omaha, Neb., July 22, 2010 – Union Pacific Corporation (NYSE: UNP) today reported 2010 second quarter net income of $711 million, or $1.40 per diluted share, compared to $465 million, or $0.92 per diluted share, in the second quarter 2009. Second quarter 2009 net income included $72 million, or $0.14 per diluted share, related to a Colorado land sale.

"Beyond strong earnings growth, the real highlight was achieving a 69.4 percent operating ratio – our first sub-70 quarterly mark, " said Jim Young, Union Pacific chairman and chief executive officer. "We demonstrated great volume leverage, efficiently handling an 18 percent increase in carloadings at modest incremental cost. This is a tremendous achievement for the men and women of UP, who not only operated a very safe and efficient network, but also drove an all-time-high for customer satisfaction."

All-Time Quarterly Records

* Diluted earnings per share improved 52 percent to $1.40.
* Operating income totaled $1.3 billion, up 71 percent.
* Net income increased 53 percent to $711 million.
* Operating ratio was 69.4 percent, 8 points better than second quarter 2009.
* Customer Satisfaction Index of 89, up 2 points.

Second Quarter Summary

Second quarter business volumes, as measured by total revenue carloads, grew 18 percent versus the prior year's recession-impacted levels. This is the first time in six years that all six Union Pacific business groups reported volume growth in the same quarter.  Quarterly operating revenue increased 27 percent in the second quarter 2010 to $4.2 billion versus $3.3 billion in the second quarter 2009. In addition:

* Freight revenues for all six business groups increased in the second quarter, up 27 percent versus 2009 to a total of $4.0 billion. Driving the increase were double-digit volume growth, increased fuel cost recoveries and core pricing gains.
* Quarterly diesel fuel prices increased 46 percent from an average of $1.57 per gallon in the second quarter 2009 to an average of $2.29 per gallon in the second quarter 2010.
* Union Pacific's operating ratio was a best-ever 69.4 percent, an 8 point improvement versus 2009. Strong volume growth combined with ongoing efficiency initiatives and quarterly pricing gains drove the record performance.
* The Company's Customer Satisfaction Index of 89 was a quarterly best and 2 points better than the second quarter 2009.
* Quarterly train speed, as reported to the Association of American Railroads, was 26.4 mph, down 4 percent versus record velocity in the second quarter 2009. Operations were slowed by June flooding in the Midwest and network infrastructure replacement and improvement programs.
* The Company repurchased nearly 6.5 million shares in the second quarter 2010 at an average share price of $71.74, and aggregate cost of approximately $466 million.

Summary of Second Quarter Freight Revenues

* Automotive up 105 percent.
* Intermodal up 35 percent.
* Industrial Products up 30 percent.
* Chemicals up 19 percent.
* Energy up 17 percent.
* Agricultural up 13 percent.


"While the pace and direction of the economic recovery is uncertain, we expect and are prepared to handle continued volume growth on our network, both in 2010 and beyond," Young said. "As carloadings increase, we are focused on meeting the increased expectations of customers and shareholders to move new and existing business safely, efficiently and more profitably. We're also planning for tomorrow, investing for growth as we deliver higher shareholder returns."

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 plans and expectations with respect to economic conditions and future revenue growth; meeting expectations of its customers and shareholders; moving customer traffic safely, efficiently and more profitably; and making investments and improving shareholder returns. 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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