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Reported net income for full year 2023 was
"The team continues to execute our multi-year strategy to be the industry's best in safety, service, and operational excellence," said
Fourth Quarter Summary: 2023 vs. 2022
Financial Results: Increased Volume and Core Pricing Gains Offset by Lower Fuel Surcharge Revenue Led to Flat Operating Revenue
- Operating revenue of
$6.2 billion was flat driven by increased volume and core pricing gains offset by reduced fuel surcharge revenue and business mix. - Revenue carloads were up 3%.
- Operating ratio was 60.9%, an improvement of 10 basis points.
-
Operating income of
$2.4 billion was flat.
Operating Performance: Improved Resource Utilisation Drives Strong Service Metrics and Fluid Network; Fourth Quarter Record for Workforce Productivity
- Quarterly freight car velocity was 217 daily miles per car, a 14% improvement.
- Quarterly locomotive productivity was 140 gross ton-miles (GTMs) per horsepower day, a 14% improvement.
- Average maximum train length was 9,413 feet, a 2% increase.
- Quarterly workforce productivity improved 4% to 1,051 car miles per employee.
- Fuel consumption rate of 1.091, measured in gallons of fuel per thousand GTMs, deteriorated 3%.
Full Year Summary: 2023 vs. 2022
Financial Results: Lower Fuel Surcharge Revenue and Volume Drive Reduced Operating Revenue
- Operating revenue of
$24.1 billion was down 3% driven by lower fuel surcharge revenue, business mix, and volume declines partially offset by core pricing gains. - Revenue carloads declined 1%.
Union Pacific's 62.3% reported operating ratio deteriorated 220 basis points. Lower fuel prices positively impacted the operating ratio by 50 basis points.-
Operating Income of
$9.1 billion was down 8%. Union Pacific's 2023 capital program totaled$3.7 billion .-
The company repurchased 3.5 million shares in 2023 at an aggregate cost of
$712 million .
Operating Performance: Improving Resource Availability and Utilisation Through the Year Results in Fluid Operations to End 2023
Union Pacific's reportable derailment rates improved, while reportable personal injury rates did not improve.- Freight car velocity was 204 daily miles per car, a 7% improvement.
- Locomotive productivity was 129 GTMs per horsepower day, a 3% increase.
- Average maximum train length of 9,356 feet was flat.
- Workforce productivity of 1,000 car miles per employee declined 3%.
- Fuel consumption rate of 1.088, measured in gallons of fuel per thousand GTMs, deteriorated 1%.
2024 Outlook
- Volume outlook muted by international intermodal business loss, lower coal demand, and soft economic conditions
- Pricing dollars in excess of inflation dollars
-
No change to long-term capital allocation strategy
-
Capital plan of
$3.4 billion - No first quarter share repurchases
-
Capital plan of
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