Union Pacific Corporation (UNP) Q3 2022 Earnings Call Transcript

Union Pacific Corporation (NYSE:UNP) Q3 2022 Earnings Conference Call October 20, 2022 8:45 AM ET

Company Participants

Lance Fritz - Chairman, President and CEO

Kenny Rocker - Executive Vice President, Marketing and Sales

Eric Gehringer - Executive Vice President, Operations

Jennifer Hamann - Chief Financial Officer

Conference Call Participants

Brian Ossenbeck - JPMorgan

Christian Wetherbee - Citigroup Inc.

Jason Seidl - Cowen and Company

Jonathan Chappell - Evercore ISI

David Vernon - Sanford C. Bernstein

Ravi Shanker - Morgan Stanley

Allison Poliniak - Wells Fargo

Kenneth Hoexter - Bank of America

Scott Group - Wolfe Research

Cherilyn Radbourne - TD Securities

Ariel Rosa - Credit Suisse

Amit Mehrotra - Deutsche Bank

Benjamin Nolan - Stifel

Brandon Oglenski - Barclays

Walter Spracklin - RBC Capital Markets

Jeffrey Kauffman - Vertical Research Partners

Bascome Majors - Susquehanna Financial Group

Justin Long - Stephens Inc.

Thomas Wadewitz - UBS

Jordan Alliger - Goldman Sachs

Operator

Greetings. Welcome to Union Pacific's Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, and the slides for today's presentation are available on Union Pacific's website.

It is now my pleasure to introduce your host, Mr. Lance Fritz, Chairman, President and CEO for Union Pacific. Thank you. Mr. Fritz, you may now begin.

Lance Fritz

Thank you, Rob, and good morning, and welcome to Union Pacific's third quarter earnings conference call. With me today in Omaha are Kenny Rocker, Executive Vice President of Marketing and Sales; Eric Gehringer, Executive Vice President of Operations; and Jennifer Hamann, our Chief Financial Officer.

Before discussing results for the quarter, I want to thank our employees for their tireless efforts over the past several months to improve service levels. I'd also note the dedicated service of our craft professionals throughout the recent very lengthy labor negotiation. The new agreements based on the Presidential Emergency Board recommendations reward our employees for their hard work. And with roughly half of our unions ratifying agreements, we are looking forward to complete this process and move forward.

Now turning to our third quarter results. This morning, Union Pacific is reporting 2022 third quarter net income of $1.9 billion or $3.05 per share. These results include the impact of a $114 million charge for prior period estimates related to the new labor agreements. Excluding that charge, adjusted net income is $2 billion or $3.19 per share. This compares to third quarter 2021 results of $1.7 billion or $2.57 per share.