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UNION PACIFIC REPORTS RESULTS

 UNION PACIFIC REPORTS RESULTS
 BETHLEHEM, Pa., Jan. 22 /PRNewswire/ -- Because of a special


restructuring charge of $575 million (after-tax) announced in September, Union Pacific Corporation (NYSE: UNP) had earnings of $64 million or 31 cents per share in 1991.
 Excluding the special charge, the corporation's earnings would have been $639 million, up 3 percent over 1990 earnings of $618 million. Earnings per share without the charge would have been $3.16 in 1991, compared to $3.08 last year. Fourth-quarter earnings were up 5 percent, from $176 million to $184 million, while earnings per share rose from 87 cents to 90 cents.
 Union Pacific Railroad had earnings of $110 million in 1991. Excluding the charge, the Railroad would have been up nearly 8 percent, to $602 million, despite a very difficult operating environment. The company's carloadings were up nearly 4 percent, while the average carloadings hauled by the industry declined 3 percent in 1991. Union Pacific continued to raise its market share in several key areas, capturing business from other railroads and from trucks. The strongest performers in 1991 were merchandise traffic, up 13 percent, because of significantly increased double-stack business, and coal, up 6 percent, primarily due to higher traffic from the Powder River Basin. Food products were also up 4 percent, while chemicals, grain and forest products were essentially flat and autos were down 5 percent because of the falloff in domestic auto sales. The Railroad's operating ratio, excluding the impact of the special charge, would have improved slightly, from 80.8 to 80.4.
 Union Pacific Resources had earnings of $207 million, or $243 million before the charge, compared to $240 million last year. Significantly higher volumes of crude oil and plant liquids offset lower prices for all hydrocarbons and associated lower natural gas output. Overall volumes on a barrel of oil equivalent (BOE) basis were up 10 percent, with crude and liquids up 30 and 24 percent, while gas was down 4 percent. Average prices for gas, crude and liquids were down 15, 11 and 6 percent, respectively. The most significant success in 1991 was the company's Austin Chalk horizontal drilling program in south Texas, where volumes increased from 24,400 to 47,700 BOE a day during the year.
 Before goodwill, Overnite Transportation had earnings of $33 million. Excluding the charge, these earnings would have been $50 million, down 11 percent from 1990 earnings. An average price increase of 7 percent could not offset a recession-driven decline of 7 percent in tonnage. Despite a tough operating climate, Overnite maintained the lowest operating ratio among major less-than-truckload carriers; excludinillion. Excluding the charge, earnings would have been $6 million, compared to $13 million in 1990, as potential customers continued to postpone remedial projects during the recession. Union Pacific Realty earned nearly $23 million as it continued to liquidate the company's real estate holdings.
 In the fourth quarter of 1991, Union Pacific Corporation had record earnings of $184 million, up 5 percent from 1990 fourth-quarter earnings of $176 million. The Railroad earned $163 million, up nearly 13 percent; UP Resources had earnings of $80 million, compared to $83 million in 1990; Overnite's net before goodwill was $12 million, compared to $13 million last year; USPCI's earnings before goodwill were $2 million, compared to $3 million in 1990; and UP Realty earned $4 million compared to $6 million in the fourth quarter of 1990.
 "We are encouraged by our overall results in 1991 and remain cautiously optimistic about the coming year," said Drew Lewis, chief executive officer. "Our basic operating strengths should enable us to benefit significantly from any economic upturn in 1992."
 A fourth-quarter and full-year income statement follows.
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 STATEMENT OF CONSOLIDATED INCOME
 Periods Ended Dec. 31
 (Dollars in Millions Except Per Share Amounts)
 (Unaudited)
 Fourth Quarter 12 Months
 Pct. Pct.
 +Incr. +Incr.
 1991 1990 -Decr. 1991 1990 -Decr.
 Op Rev $1,801 $1,813 - 1 $7,029 $6,964 + 1
 Op Exp (Excl
 Spec Chge) 1,442 1,481 - 3 5,698 5,640 + 1
 Special Charge -- -- -- 870 -- (A)
 Op Income 359 332 + 8 461 1,324 - 65
 Other Inc-
 Net 49 50 - 2 122 95 + 28
 Interest Exp (94) (94) -- (388) (380) + 2
 Corporate Exps (29) (28) + 4 (83) (87) - 5
 Inc Before Fed
 Income Taxes 285 260 + 10 112 952 - 88
 Federal Inc
 Taxes (101) (84) + 20 (48) (334) - 86
 Net Inc $ 184 $ 176 + 5 $ 64 $ 618 - 90
 Earnings
 Per Share $ 0.90 $ 0.87 + 3 $ 0.31 $ 3.08 - 90
 Average Shares
 Outstand. (MM) N/A N/A - 202.0 200.5 + 1
 Shares Outst. at
 12/31 (MM) 202.8 200.3 + 1 202.8 200.3 + 1
 Notes:
 1) In September 1991 Union Pacific Corporation (the 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.
 2) Effective Oct. 1, 1991, the Corporation's common stock was split 2 for 1 in the form of a 100 percent stock dividend. All shares outstanding and earnings per share amounts have been restated to reflect the stock split.
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 SCHEDULE OF CONSOLIDATED NET INCOME (LOSS) BY OPERATING UNIT
 Periods Ended Dec. 31
 (Dollars in Millions Except Per Share Amounts)
 (Unaudited)
 INCLUDING SPECIAL CHARGE
 Fourth Quarter 12 Months
 Pct. Pct.
 +Incr. +Incr.
 1991 1990 -Decr. 1991 1990 -Decr.
 Un Pac
 Railroad $ 163 $ 144 + 13 $ 110 $ 560 - 80
 Un Pac Resources 80 83 - 4 207 240 - 14
 Overnite Trans 12 13 - 8 33 56 - 41
 USPCI 2 3 - 33 (11) 13 (A)
 Un Pac Realty 4 6 - 33 23 32 - 28
 Corp Services (77) (73) + 5 (298) (283) + 5
 Net Income $ 184 $ 176 + 5 $ 64 $ 618 - 90
 Earnings
 Per Share $0.90 $0.87 + 3 $0.31 $3.08 - 90
 EXCLUDING SPECIAL CHARGE
 Fourth Quarter 12 Months
 Pct. Pct.
 +Incr. +Incr.
 1991 1990 -Decr. 1991 1990 -Decr.
 Un Pac
 Railroad $ 163 $ 144 + 13 $ 602 $ 560 + 8
 Un Pac Resources 80 83 - 4 243 240 + 1
 Overnite Trans 12 13 - 8 50 56 - 11
 USPCI 2 3 - 33 6 13 - 54
 Un Pac Realty 4 6 - 33 23 32 - 28
 Corp Services (77) (73) + 5 (285) (283) + 1
 Net Income (Excl
 Spec Charge) $ 184 $ 176 + 5 $ 639 $ 618 + 3
 Earnings Per
 Share (Excl
 Spec Chge) $0.90 $0.87 + 3 $3.16 $3.08 + 3
 (A) Unfavorable variance.
 /delval/
 -0- 1/22/92
 /CONTACT: Harvey S. Turner of Union Pacific, 215-861-3388/
 (UNP) CO: Union Pacific Corporation ST: Pennsylvania IN: TRN SU: ERN


MP-LJ -- PH004 -- 2113 01/22/92 09:22 EST
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Date:Jan 22, 1992
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