Union Pacific Corporation (NYSE:UNP) Q2 2024 Earnings Conference Call July 25, 2024 8:45 AM ET

Company Participants

Jim Vena - Chief Executive Officer
Jennifer Hamann - Executive Vice President and Chief Financial Officer
Kenny Rocker - Executive Vice President, Marketing and Sales
Eric Gehringer - Executive Vice President-Operations

Conference Call Participants

Brandon Oglenski - Barclays Capital
Scott Group - Wolfe Research
Jason Seidl - TD Cowen
Jon Chappell - Evercore ISI
Stephanie Moore - Jefferies
Brian Ossenbeck - J.P. Morgan
Ken Hoexter - Bank of America Securities
Tom Wadewitz - UBS
Chris Wetherbee - Wells Fargo
Walter Spracklin - RBC
Ben Nolan - Stifel
Jordan Alliger - Goldman Sachs
Bascome Majors - Susquehanna
Christyne McGarvey - Morgan Stanley
Daniel Imbro - Stephens
David Vernon - Bernstein Research

Operator

Greetings, and welcome to the Union Pacific Second Quarter Earnings Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [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. Jim Vena, Chief Executive Officer for Union Pacific. Thank you, Mr. Vena. You may now begin.

Jim Vena

Thanks, Rob. And, good morning, and nice to come to you all from a beautiful morning here is Omaha. And, thanks for joining us today to discuss Union Pacific’s second quarter results.

I’m joined by our Chief Financial Officer, Jennifer Hamann; our Executive Vice President of Marketing and Sales, Kenny Rocker; and our Executive Vice President of Operations, Eric Gehringer.

As we dive into the discussion of the second quarter, you’ll hear that operating outdoors these past few months has not been easy, but I’m pleased with how we manage those challenges to drive strong financial results. It provides another proof point that our strategy is the right one to drive success.

Now, let’s discuss second quarter results starting on Slide 3. This morning, Union Pacific reported 2024 second quarter net income of $1.7 billion or $2.74 per share. This compares to 2023 second quarter net income of $1.6 billion or $2.57 per share. Second quarter operating revenue was up 1% as solid core pricing gains and slightly increased volume were reduced by a negative business mix and lower fuel surcharge revenue. And, if you’re normalizing for the yearly change in fuel, freight revenue was up 2% versus 2023.