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UNION PACIFIC CORPORATION ACHIEVES RECORD EARNINGS OF ecord $728 million, the company announced today. Earnings in 1991 of $64 million included a $575 million after-tax restructuring charge. Excluding last year's charge, 1992 earnings increased 14 percent. Earnings per share were $3.57 in 1992, compared

reported significant gains, with the two largest achieving record results. Fourth quarter earnings were up 4 percent, from $184 million to $192 million, while earnings per share rose from 90 cents to 94 cents.
 Union Pacific Railroad earnings reached an all-time high of $667 million compared to $110 million in 1991 including the charge. Excluding last year's charge, earnings would have been up 11 percent over 1991. Carloadings increased 4 percent despite the sluggish economic recovery. Auto traffic was up 13 percent, intermodal shipments up 9 percent, metals up 9 percent, grain up 7 percent and chemicals up 2 percent. Coal traffic was off 5 percent as a stronger fourth quarter helped offset weak volumes earlier in the year. With continued productivity gains and Presidential Emergency Board workforce reductions, the Railroad cut its operating ratio more than a point, from 80.4 (excluding the charge) in 1991 to a record low of 79.0 in 1992.
 Union Pacific Resources increased its earnings to a record $272 million. Earnings in 1991 were $207 million including the special charge. Excluding the charge, 1992 earnings would have increased 12 percent over last year. Results were fueled by record crude oil production along with natural gas volumes and price gains. UPRC's gas sales and average prices improved 8 and 9 percent, respectively. Crude oil volumes were up 21 percent, spurred by a 51 percent increase in total Austin Chalk output--from 38,800 barrels of oil equivalent a day last year to 58,800 BOE/D in 1992. The Austin Chalk development program and tight sands drilling in Wyoming and Texas made UPRC the most active driller in the United States. Average oil prices declined 6 percent, while plant liquids were down 5 percent in volume and 10 percent in price. UPRC's overall hydrocarbon production was up 9 percent on a BOE basis. The company also benefited from a $42 million after-tax favorable one-time tax settlement in the second quarter of 1992.
 Overnite Transportation achieved earnings of $60 million, compared to $33 million last year, before goodwill of $20 million in both periods. Without the 1991 special charge, 1992 earnings would have increased 20 percent. Overnite's strong results were driven by record less-than-truckload tonnage, combined with slightly higher LTL prices in a very competitive operating climate. Overnite's operating ratio remained the lowest of the major LTL companies, 90.9 in 1992 vs. 91.9 in 1991, excluding the special charge.
 USPCI increased its earnings to $9 million before goodwill of $9 million.
 In the fourth quarter of 1992, Union Pacific Corporation had record earnings of $192 million or 94 cents a share, up 4 percent from 1991 earnings of $184 million and 90 cents a share. The Railroad earned $188 million, a gain of 15 percent; Resources had earnings of $64 million, compared to $80 million in the fourth quarter of 1991; Overnite earned $14 million before $5 million in goodwill, up 17 percent; and USPCI earned $3 million before goodwill of $2 million, compared to earnings of $2 million in the fourth quarter of 1991.
 "We are pleased with the across-the-board strength of our operating companies and their results in 1992," said Drew Lewis, chief executive officer. "We expect increased earnings in 1993, and, if the economy continues to improve, our earnings should rise accordingly."
 A fourth quarter and full-year income statement follows.
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 Statement of Consolidated Income
 (Unaudited; dollars in millions except per-share amounts)
 Periods ended Fourth quarter Pct. 12 months Pct.
 Dec. 31 1992 1991 Chg. 1992 1991 Chg.
 Operating revenues $1,916 $1,801 6 $7,294 $7,029 4
 Operating expenses
 (excluding
 special charge) 1,566 1,442 9 5,889 5,698 3
 Special charge -- -- -- -- 870 --
 Operating income 350 359 (3) 1,405 461 F
 Other income-net 63 49 29 146 122 20
 Interest expense (92) (94) (2) (360) (388) (7)
 Corporate expenses (35) (29) 21 (90) (83) 8
 Income before federal
 income taxes 286 285 -- 1,101 112 F
 Federal income taxes (94) (101) (7) (373) (48) U
 Net income $192 $184 4 $728 $64 F
 Earnings per share $0.94 $0.90 4 $3.57 $0.31 F
 Average shares
 outstanding (MM) N/A N/A -- 203.9 202.0 1
 Shares outstanding
 at 12/31 (MM) 203.9 202.8 1 203.9 202.8 1
 Note: In the third quarter of 1991 Union Pacific Corporation recorded a special charge of $870 million before tax ($575 million after tax) related to operational restructurings, principally at Union Pacific Railroad. Excluding this special charge, net income would have been $639 million ($3.16 per share) for the year ended Dec. 31, 1991.
 /delval/
 -0- 1/21/93
 /CONTACT: Harvey S. Turner of Union Pacific, 215-861-3388/
 (UNP)


CO: Union Pacific Corporation ST: Pennsylvania IN: TRN SU: ERN

MP -- PH007 -- 7257 01/21/93 09:16 EST
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Date:Jan 21, 1993
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