Union Pacific has released its 2016 full year and Q4 financial results. Revenue for the year was down 8.6% to $19.9bn and down 0.8% to $5.2bn for Q4 compared with 2015. Operating Income decreased 9.7% to $7.3bn in 2016, though it increased 2.5% to $1.9bn for Q4 compared with 2015.
Union Pacific also revealed its volumes across its operations in the past year and quarter. Revenue carloads were down 6.8% from the previous year. In specific sectors; chemicals, coal, industrial products and intermodal sectors saw declines, with no change in the automotive sector and modest growth in its agricultural products activities. Broken down by revenue, similar patterns were seen, with only agricultural products providing progress on the previous year.
In addition to a decline in volumes, Union Pacific also attributed decreasing revenues to lower fuel surcharges which more than offset pricing gains.
Commenting on the decrease in demand, Lance Fritz, Union Pacific Chairman, President and CEO explained: “While full-year volumes were down substantially year over year, we did see declines moderate in the fourth quarter.”
Looking to 2017, Fritz added: “we are fairly optimistic about some of the macro-economic indicators that drive our core business. Higher energy prices, favourable agricultural markets and improving business and consumer confidence all support a return to positive volume growth this year.”
Source: Union Pacific
