UP set several financial, operating records in Q1

Operating revenue rose 3% year over year to a record $6.2 billion. The Class I’s other records include operating income, which increased 4% to $2.5 billion; net income, which climbed 5% to $1.7 billion; and freight revenue, which rose 4% to $5.9 billion. 

In addition, the operating ratio improved 0.2 points to 60.5 and adjusted operating ratio improved 0.8 points to 59.9. Operating expenses increased 3% to $3.8 billion. However, volume dipped 1% to 2.1 million units.

UP also reported its best-ever quarter for terminal dwell time and locomotive productivity, and best first quarter for freight-car velocity, train length, workforce productivity and fuel consumption rate. 

Freight-car velocity rose 9% to 235 daily miles per car, average terminal dwell time improved 11% to 19.7 hours, locomotive productivity rose 6% to 144 gross ton-miles per horsepower day and workforce productivity increased 7% to 1,163 car miles per employee. 

“Our safety, service and operational excellence strategy has not changed, and I’m proud of the momentum we carried into the first quarter. These results are spectacular,” said UP CEO Jim Vena in an online message on Q1 results. “Based on our service performance, the case for our merger [with Norfolk Southern Railway] is stronger than ever.”