UP’s net income for the year was $US 5.9bn or $US 8.38 per diluted share while operating income was $US 8.6bn, which was flat compared with the previous year.
Freight revenue accounted for $US 20.2bn of all revenues, a 5% decrease compared with 2018. Loadings were also down 6% versus 2018 with growth in industrial volumes more than offset by fewer agricultural products, premium and energy shipments.
However, the railway did report its best-ever operating ratio of 60.6%, 2.1 points less than in 2018.
Among the factors which contributed to this result was a 2% improvement in the fuel consumption rate, a 6% improvement in wagon speed to 334km per day, and a terminal dwell time of 24.8 hours, a 17% improvement year-on-year.
In the fourth quarter of 2019, the railway’s operating revenue fell by 9% to $US 5.2bn. Net income for the quarter also fell to $US 1.4bn, or $US 2.20 per diluted share, from $US 1.6bn or $US 2.12 per diluted share in the fourth quarter of 2018. UP’s fourth quarter operating ratio was 69.7%, a fourth quarter record and the third consecutive quarter below 60%.
“Given the challenging volume environment, we leveraged strong productivity to deliver solid financial results,” says UP chairman, president and CEO, Mr Lance Fritz.
