Union Pacific profits rise on operational efficiency, pricing gains

Core Insights - Union Pacific reported strong financial results in Q3, driven by pricing gains, record workforce productivity, and improved fuel consumption, despite flat volume [1][2] - The company achieved record freight revenue, excluding fuel, for the sixth consecutive quarter, with operating income increasing by 6% to $2.5 billion and revenue growing by 3% to $6.2 billion [2][3] Financial Performance - Operating ratio improved by 1.1 points to 59.2%, with expenses rising by only 1%; adjusted for acquisition-related costs, the operating ratio was 58.5% [3] - Earnings per share rose by 9% to $3.01, reflecting the company's effective cost management and operational efficiencies [2] Volume and Revenue Metrics - Overall volume remained flat in terms of carloads and intermodal units, but revenue ton-miles increased by 5% [3] - Bulk carloads increased by 7%, primarily due to a rise in coal traffic, while industrial products volume grew by 3% [4] Operational Efficiency - Key operational metrics showed improvement: freight car velocity increased by 8%, train speed rose by 4%, and terminal dwell time decreased by 9% to a record low of 20.4 hours [5] - Average train length reached a quarterly record of 9,801 feet, growing by 2% [5] Safety and Employment - Employment levels decreased by 4% year-over-year to 28,871, but safety metrics improved, positioning Union Pacific to potentially become the safest Class I railroad in the U.S. [6][7]