USA: ‘While full-year volumes were down substantially year over year, we did see declines moderate in the fourth quarter,’ said Union Pacific Chairman, President & CEO Lance Fritz when presenting the company’s annual results on January 19. ‘As we worked through the challenges of the year, we remained focused on the strategy we live each day through our six value tracks.’
UP reported net income of $4·2bn in 2016, down 11% from the previous year. Operating revenue of $19·9bn was down from $21·8bn in 2015, and operating income was down 10% at $7·3bn.
Freight revenue was down 9% at $18·6bn, with carloads falling 7% as result of declines in the chemical, coal, industrial products and intermodal business groups. UP’s operating ratio of 63·5 was 0·4 points higher than the full-year record set in 2015.
The 2016 capital programme totalled $3·5bn, down $800m on 2015.