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UNION PACIFIC REPORTS RESULTS

 BETHLEHEM, Pa., Oct. 20 /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) today reported third quarter earnings of $108 million or 53 cents per share, including $69 million in increased income tax expense resulting from the 1993 Tax Act.
 Of this amount, $61 million relates to a one-time non-cash deferred tax adjustment. The remaining $8 million reflects a 1 percent tax rate increase on earnings for the first nine months of 1993. Excluding the one-time portion of this adjustment, net income would have been $169 million or 83 cents per share. This compares to $185 million or 91 cents per share in the third quarter last year.
 The following discussion of earnings by subsidiary excludes the impact of the $61 million one-time deferred tax adjustment.
 Union Pacific Railroad had third quarter earnings of $146 million, compared to $185 million last year. The extensive flooding in the Midwest reduced net income in the quarter by an estimated $34 million, through lost revenue and higher operating expenses. Despite the traffic disruption caused by the floods, carloadings were still up 2 percent in the third quarter. A 5 percent increase in both coal and intermodal combined with a 6 percent increase in food products to offset decreases in the other commodity areas. The floods also raised the Railroad's operating ratio from 77.0 to 80.4 in the third quarter.
 Union Pacific Resources increased third quarter earnings 28 percent to $68 million. Volume increases in natural gas and natural gas liquids, combined with higher gas prices and the ongoing cost benefits of last year's restructuring, helped offset the impact of lower prices for crude and natural gas liquids. Total volumes were up 9 percent, with plant liquids up 23 percent, gas up 10 percent and crude oil flat with last year. Gas prices increased 12 percent, while plant liquids prices were down 19 percent and crude prices were down 15 percent. Earnings in the third quarter of 1992 included $16 million in costs associated with the restructuring.
 Overnite Transportation increased earnings 11 percent to $20 million, excluding goodwill of $6 million. The company boosted its total tonnage by 6 percent in a very competitive operating environment. Overnite also increased its average revenue per hundredweight by 3 percent and improved its operating ratio from 89.4 to 88.2. USPCI had earnings of $1 million, compared to $3 million in last year's third quarter, before goodwill of $2 million in each period.
 Earnings as reported by Union Pacific for the first nine months were $295 million or $1.44 per share. Excluding one-time accounting adjustments primarily for FASB 106 and 109, and the $61 million one-time deferred tax adjustment, earnings would have been $531 million or $2.59 per share, compared to $536 million or $2.63 per share in the first nine months of 1992. The following discussion by subsidiary also excludes these one-time adjustments. Union Pacific Railroad earned $465 million for the nine months, compared to $479 million; UP Resources had earnings of $222 million, compared to $208 million; Overnite earned $50 million (before goodwill of $17 million), compared to $47 million (before goodwill); and USPCI had a loss of $3 million (before goodwill of $7 million), compared to earnings of $6 million (before goodwill).
 "The impact of both the flood and the tax adjustments this quarter has obscured the company's fundamental strength," said Drew Lewis, chief executive officer. "Now that these are behind us, I look forward to a strong finish for the year."
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 STATEMENT OF CONSOLIDATED INCOME
 (Unaudited; Dollars in Millions Except Per Share Amounts)
 Periods Ended Third Quarter Nine Months
 September 30 Percent
 + Inc. + Inc.
 1993 1992 - Dec. 1993 1992 - Dec.
 Opertg Revenues $1,901 $1,851 + 3 $5,580 $5,378 + 4
 Opertg Expenses 1,556 1,479 + 5 4,507 4,323 + 4
 Opertg Income 345 372 - 7 1,073 1,055 + 2
 Other Income-Net 25 26 - 4 65 83 -22
 Interest Expense (79) (90) - 12 (247) (268) - 8
 Corp. Expenses (27) (23) + 17 (73) (55) +33
 Inc. Before
 Inc. Taxes 264 285 - 7 818 815 --
 Income Taxes a):
 Current Year (95) (100) - 5 (287) (279) + 3
 Tax Rate Incr. On
 Prior Year Items (61) -- -- (61) -- --
 Total (156) (100) +56 (348) (279) +25
 Net Income Before
 Cum Acct Chngs 108 185 -42 470 536 -12
 Cum Effect of Acctg
 Changes b): -- -- -- (175) -- --
 Net Income $ 108 $ 185 -42 $ 295 $ 536 -45
 Earnings Per Share
 Before Cum Acct
 Chgs $0.53 $0.91 -42 $2.29 $2.63 -13
 Earnings Per Share
 After Cum Effect $0.53 $0.91 -42 $1.44 $2.63 -45
 Average Shares
 Outstanding (MM) N/A N/A -- 205.4 203.8 + 1
 (A) In August 1993, the Corporate tax rate increased by 1 percent to 35 percent retroactive to Jan. 1, 1993. The Corporation's income tax expense increased by $8 million ($.04 per share)with respect to 1993 income through Sept. 30, 1993, and by $61 million ($.30 per share) for prior deferred tax items.
 (B) Cumulative effect of accounting changes includes one-time adjustments for the adoption of SFAS 106 - "Accounting for Postretirement Benefits", SFAS 109 - "Accounting for Income Taxes", and a change in revenue recognition methods.
 /delval/
 -0- 10/20/93
 /CONTACT: Harvey S. Turner of Union Pacific, 215-861-3388/
 (UNP)


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

MK -- PH007 -- 4424 10/20/93 09:20 EDT
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Date:Oct 20, 1993
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