Operating revenue increased 5% to $5.5 billion as total revenue carloads increased 1%. The Omaha-based carrier said volume increases in industrial products and chemicals more than offset declines in agricultural products, automotive and coal. Intermodal volume was flat compared to 2016.
Quarterly freight revenue increased 5% year-on-year on higher fuel surcharge revenue, core pricing gains, positive volume and positive mix of traffic. Revenue for Industrial Products volume was up 28%; chemicals by 7%, and Intermodal, 4%. Automotive declined 1%; agricultural Products, 4%, and coal, 5%.
The adjusted operating ratio of 62.6% increased 0.6 points.
Quarterly train speed, as reported to the Association of American Railroads, was 25.1 mph, 5% slower than fourth quarter 2016.
In the quarter Union Pacific repurchased 9.2 million shares at an aggregate cost of $1.1 billion.
For all of 2017, net income was $10.7 billion or $13.36 per diluted share, compared to $4.2 billion, or $5.07 per diluted share in 2016. Excluding the tax adjustments, net income was $4.6 billion, or $5.79 per diluted share, 10% and 14% increases, respectively.
Operating revenue totaled $21.2 billion from $19.9 billion in 2016. Adjusted operating income totaled $7.8 billion, an 8% increase.
Freight revenue totaled $19.8 billion, up 7%. Carloadings gained 2% with increases in industrial products and coal business groups. The average diesel fuel prices increased 22 percent to $1.81 per gallon in 2017 from $1.48 per gallon in 2016.
The adjusted operating ratio improved to 63.0%, 0.5 points lower on-year. Train speed was 25.4 mph, down 5%.
Union Pacific’s capital program in 2017 totaled $3.1 billion, and it repurchased 36.4 million shares at an aggregate cost of $4 billion.
“We are optimistic the economy will favor a number of our market segments leading to another year of positive volume growth,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “Increased unit volume, combined with inflation plus core pricing and G55-0 productivity initiatives, should result in another year of revenue growth and improved margins.”
