The Union Pacific Railroad (reporting mark UP) (NYSE: UNP), headquartered in Omaha, Nebraska, is the largest railroad network in the United States. James R. Young is president, CEO and Chairman.
UP's route map covers most of the central and western United States west of Chicago and New Orleans. As of December 31, 2008 UP operates on 32,012 miles (51,518 km) of track, of which it owns outright 26,171 miles (42,118 km). Both numbers represent the highest amount of any railroad currently operating in the United States. It has achieved this size as a result of purchasing a large number of other railroads, notably the Missouri Pacific, Chicago and North Western, Western Pacific, Missouri-Kansas-Texas, and the Southern Pacific (including the Rio Grande). Currently, Union Pacific owns 26% of Ferromex while Grupo Mexico owns the remaining 74%.
UP's chief railroad competitor is the BNSF Railway, which covers much of the same territory.
Union Pacific Corporation, incorporated in 1969, is engaged in the transportation business. The Company’s principal operating company, Union Pacific Railroad Company, links 23 states in the western two-thirds of the United States of America. Union Pacific Railroad Company serves many United States population centers and provides them with mode of freight transportation. Union Pacific Railroad Company’s business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The Company has 31,953 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and the eastern United States gateways and providing several corridors to key Mexican gateways. It serves the western two-thirds of the United States and maintains coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico.
Agricultural
Transporting agricultural products generated 19% of the Company’s freight revenues during the yea ended December 31, 2010. Included in this commodity group are whole grains, products produced from grains, and food and beverage products, in addition to corn for ethanol production and it’s by products. the Company provides a critical link between the Midwest and western producing areas and export terminals in the Pacific Northwest (the PNW) and Gulf ports, as well as Mexico. It also transports frozen meat and poultry to the West Coast ports for export, while beverages, primarily beer, enter the United States from Mexico.
Automotive
The Company is an automotive carrier west of the Mississippi River, serving vehicle assembly plants and distributing imported vehicles from West Coast ports and Houston. It operates or accesses 43 vehicle distribution centers covering the United States cities. In addition to transporting finished vehicles, it provides expedited handling of automotive parts in both boxcars and intermodal containers to several assembly plants. It carries automotive materials bound for assembly plants in Mexico, the United States and Canada. It also transports finished vehicles from manufacturing facilities in Canada and Mexico. During 2010, transportation of finished vehicles and automotive materials accounted for 8% of its freight revenues.
Chemicals
Transporting chemicals provided 15% of the Company’s freight revenues during 2010. the Company’s enables it to serve the chemical producing areas along the Gulf Coast, as well as the Rocky Mountain region. Two-thirds of the chemicals business consists of industrial chemicals, plastics, and liquid petroleum products.
Energy
Coal transportation accounted for 22% of the Company’s freight revenues during 2010. the Company’s transportation network allows it to transport coal and coke to utilities, industrial facilities, interchange points, and water terminals. Water terminals provide access to the West and Gulf Coasts for export, and rail/barge interchange facilities on the Mississippi and Ohio Rivers and the Great Lakes. It serves mines located in the Southern Powder River Basin (SPRB) of Wyoming, Colorado, Utah, southern Wyoming, and southern Illinois.
Industrial Products
The Company’s network enables it to move numerous commodities between thousands of origin and destination points throughout North America. Lumber shipments originate primarily in the PNW and Canada for destinations throughout the United States for new home construction and repair and remodeling. Commercial and highway construction drives shipments of steel and construction products, consisting of rock, cement and roofing materials. It provides transportation for government entities and waste companies. During 2010, transporting industrial products provided 16% of the Company’s freight revenues.
Intermodal
The Company’s intermodal business, which represented 20% of its freight revenues during 2010, includes international and domestic shipments. International business consists of imported or exported container traffic that arrives at, or departs from, West Coast ports via ocean vessel. Domestic business includes domestic container and trailer traffic for retailers and other United Sates businesses that is usually sold through intermodal marketing companies (primarily shipper agents and consolidators) and truckload carriers.
The Company competes with Burlington Northern Santa Fe Corporation.
By 1995, the consolidation that followed the deregulation of the railroad industry in the early 1980s had reduced the number of large, Class 1 railroads from 40 to 10. But the mergers were not over yet. In November 1995 Union Pacific filed an application with the ICC to acquire Southern Pacific in a $3.9 billion takeover. One month later the U.S. Congress abolished the ICC, creating the Surface Transportation Board (STB) as the new railroad industry oversight body. The UP-SP deal was fiercely opposed by the Justice, Transportation, and Agriculture departments and by such rival railroads as Kansas City Southern and Consolidated Rail. But in July 1996 the STB approved the merger, with the only major stipulation being that UP grant trackage rights to Burlington Northern Santa Fe over about 4,000 miles of track.
The combined UP-SP railroad, which would operate under the Union Pacific name, was once again the nation's largest, with more than 30,000 miles of track and about $10 billion in revenue. The merger was expected to result in $627 million in annual savings through the consolidation of operations. In late 1996 Lewis retired as chairman and CEO of Union Pacific Corporation, and was succeeded by Davidson, who had most recently been president and COO of the UP holding company. Davidson was also named CEO of Union Pacific Railroad, while Davis became president and COO of the railroad.
Unfortunately, the integration of Southern Pacific into UP was no smoother than that of the Chicago & North Western. In fact it was far worse. Starting in the summer of 1997 and extending into 1998, Union Pacific's rail network suffered from gridlock, particularly along the Gulf Coast. By March 1998 delays in shipments had cost rail customers approximately $1 billion in curtailed production, reduced sales, and higher shipping costs. The STB in November 1997 ordered UP to temporarily open a part of its freight business in its Houston hub to Kansas City Southern. In February 1998 UP and Burlington Northern Santa Fe reached an agreement to create a joint dispatching center for their Gulf Coast operations, share ownership of line between Houston and New Orleans, and allow UP to use Burlington Northern tracks between Beaumont and Navasota, Texas, as needed, to bypass Houston congestion. In addition to its difficulties digesting SP, Union Pacific was also under fire for its safety record. Following three fatal accidents, a joint safety team was formed in August 1997 to review safety across the UP system. The team consisted of UP managers, union employees, and Federal Railroad Administration representatives. Meanwhile, UP moved its headquarters from Bethlehem, Pennsylvania, to Dallas in September 1997.
In May 1998 Union Pacific Corporation announced that it planned to divest its Overnite trucking unit through an IPO, in order to further focus on its core rail business. But the IPO was abandoned following a deterioration in market conditions. An attempt to find a third-party buyer failed as well. In the fourth quarter of 1998 the corporation recorded a $547 million charge to reflect an impairment in Overnite's goodwill, leading to a net loss of $633 million for the year, a loss that was also due to UP railroad's service problems and system congestion. Another outcome of the railroad's service difficulties was the August 1998 announcement of a plan to decentralize its railroad management. The railroad was reorganized into three regions--southern, based in Houston; northern, based in Omaha; and western, based in Roseville, California.
In September 1998 Ike Evans was named president and COO of Union Pacific Railroad, succeeding Davis, who became vice-chairman until his retirement in March 1999. Evans had previously been a senior vice-president at Emerson Electric Company, a manufacturer of electrical, electromechanical, and electronic products and systems. In July 1999 Union Pacific Corporation moved its headquarters again, this time landing in Omaha, where its main subsidiary, Union Pacific Railroad, was located. The corporation continued to look for an opportunity to divest Overnite through an IPO or sale to a third party and was likely to be busy assimilating Southern Pacific well into the 21st century.
Principal Subsidiaries: Overnite Transportation Company; Southern Pacific Rail Corporation; Union Pacific Railroad Company.
Principal Operating Units: Union Pacific Railroad; Overnite Transportation; Union Pacific Technologies.
OVERALL
Beta: 1.13
Market Cap (Mil.): $50,244.09
Shares Outstanding (Mil.): 490.52
Annual Dividend: 1.90
Yield (%): 1.85
FINANCIALS
UNP Industry Sector
P/E (TTM): 17.59 16.14 18.80
EPS (TTM): 44.48 -- --
ROI: 7.22 6.43 4.19
ROE: 16.47 8.02 7.33
Statistics:
Public Company
Incorporated: 1969
Employees: 65,100
Sales: $10.55 billion (1998)
Stock Exchanges: New York
Ticker Symbol: UNP
NAIC: 482111 Line-Haul Railroads; 484122 General Freight Trucking, Long-Distance, Less Than Truckload; 551112 Offices of Other Holding Companies
Name Age Since Current Position
James Young 58 2007 Chairman of the Board, President, Chief Executive Officer of UPC and Railroad
Robert Knight 53 2004 Chief Financial Officer, Executive Vice President - Finance of UPC and the Railroad
J. Michael Hemmer 61 2004 Senior Vice President - Law, General Counsel of UPC and the Railroad
Barbara Schaefer 57 2004 Senior Vice President - Human Resources, Secretary of UPC and the Railroad
Jeffrey Totusek 52 2008 Vice President, Controller of UPC and Chief Accounting Officer and Controller of the Railroad
John Koraleski 60 1999 Executive Vice President - Marketing and Sales of the Railroad
Lance Fritz 48 2010 Executive Vice President - Operations of Railroad
Steven Rogel 68 2000 Lead Independent Director
Judith Hope 70 1998 Independent Director
Thomas Donohue 73 1998 Independent Director
Archie Dunham 72 2000 Independent Director
Michael McConnell 68 2004 Independent Director
Erroll Davis 66 2004 Independent Director
Charles Krulak 69 2006 Independent Director
Andrew Card 63 2006 Independent Director
Thomas McLarty 64 2006 Independent Director
Michael McCarthy 59 2008 Independent Director
Jose Villarreal 57 2009 Independent Director
COMPANY ADDRESS
Union Pacific Corp
1400 Douglas Street
Omaha NE 68179
UP's route map covers most of the central and western United States west of Chicago and New Orleans. As of December 31, 2008 UP operates on 32,012 miles (51,518 km) of track, of which it owns outright 26,171 miles (42,118 km). Both numbers represent the highest amount of any railroad currently operating in the United States. It has achieved this size as a result of purchasing a large number of other railroads, notably the Missouri Pacific, Chicago and North Western, Western Pacific, Missouri-Kansas-Texas, and the Southern Pacific (including the Rio Grande). Currently, Union Pacific owns 26% of Ferromex while Grupo Mexico owns the remaining 74%.
UP's chief railroad competitor is the BNSF Railway, which covers much of the same territory.
Union Pacific Corporation, incorporated in 1969, is engaged in the transportation business. The Company’s principal operating company, Union Pacific Railroad Company, links 23 states in the western two-thirds of the United States of America. Union Pacific Railroad Company serves many United States population centers and provides them with mode of freight transportation. Union Pacific Railroad Company’s business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The Company has 31,953 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and the eastern United States gateways and providing several corridors to key Mexican gateways. It serves the western two-thirds of the United States and maintains coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico.
Agricultural
Transporting agricultural products generated 19% of the Company’s freight revenues during the yea ended December 31, 2010. Included in this commodity group are whole grains, products produced from grains, and food and beverage products, in addition to corn for ethanol production and it’s by products. the Company provides a critical link between the Midwest and western producing areas and export terminals in the Pacific Northwest (the PNW) and Gulf ports, as well as Mexico. It also transports frozen meat and poultry to the West Coast ports for export, while beverages, primarily beer, enter the United States from Mexico.
Automotive
The Company is an automotive carrier west of the Mississippi River, serving vehicle assembly plants and distributing imported vehicles from West Coast ports and Houston. It operates or accesses 43 vehicle distribution centers covering the United States cities. In addition to transporting finished vehicles, it provides expedited handling of automotive parts in both boxcars and intermodal containers to several assembly plants. It carries automotive materials bound for assembly plants in Mexico, the United States and Canada. It also transports finished vehicles from manufacturing facilities in Canada and Mexico. During 2010, transportation of finished vehicles and automotive materials accounted for 8% of its freight revenues.
Chemicals
Transporting chemicals provided 15% of the Company’s freight revenues during 2010. the Company’s enables it to serve the chemical producing areas along the Gulf Coast, as well as the Rocky Mountain region. Two-thirds of the chemicals business consists of industrial chemicals, plastics, and liquid petroleum products.
Energy
Coal transportation accounted for 22% of the Company’s freight revenues during 2010. the Company’s transportation network allows it to transport coal and coke to utilities, industrial facilities, interchange points, and water terminals. Water terminals provide access to the West and Gulf Coasts for export, and rail/barge interchange facilities on the Mississippi and Ohio Rivers and the Great Lakes. It serves mines located in the Southern Powder River Basin (SPRB) of Wyoming, Colorado, Utah, southern Wyoming, and southern Illinois.
Industrial Products
The Company’s network enables it to move numerous commodities between thousands of origin and destination points throughout North America. Lumber shipments originate primarily in the PNW and Canada for destinations throughout the United States for new home construction and repair and remodeling. Commercial and highway construction drives shipments of steel and construction products, consisting of rock, cement and roofing materials. It provides transportation for government entities and waste companies. During 2010, transporting industrial products provided 16% of the Company’s freight revenues.
Intermodal
The Company’s intermodal business, which represented 20% of its freight revenues during 2010, includes international and domestic shipments. International business consists of imported or exported container traffic that arrives at, or departs from, West Coast ports via ocean vessel. Domestic business includes domestic container and trailer traffic for retailers and other United Sates businesses that is usually sold through intermodal marketing companies (primarily shipper agents and consolidators) and truckload carriers.
The Company competes with Burlington Northern Santa Fe Corporation.
By 1995, the consolidation that followed the deregulation of the railroad industry in the early 1980s had reduced the number of large, Class 1 railroads from 40 to 10. But the mergers were not over yet. In November 1995 Union Pacific filed an application with the ICC to acquire Southern Pacific in a $3.9 billion takeover. One month later the U.S. Congress abolished the ICC, creating the Surface Transportation Board (STB) as the new railroad industry oversight body. The UP-SP deal was fiercely opposed by the Justice, Transportation, and Agriculture departments and by such rival railroads as Kansas City Southern and Consolidated Rail. But in July 1996 the STB approved the merger, with the only major stipulation being that UP grant trackage rights to Burlington Northern Santa Fe over about 4,000 miles of track.
The combined UP-SP railroad, which would operate under the Union Pacific name, was once again the nation's largest, with more than 30,000 miles of track and about $10 billion in revenue. The merger was expected to result in $627 million in annual savings through the consolidation of operations. In late 1996 Lewis retired as chairman and CEO of Union Pacific Corporation, and was succeeded by Davidson, who had most recently been president and COO of the UP holding company. Davidson was also named CEO of Union Pacific Railroad, while Davis became president and COO of the railroad.
Unfortunately, the integration of Southern Pacific into UP was no smoother than that of the Chicago & North Western. In fact it was far worse. Starting in the summer of 1997 and extending into 1998, Union Pacific's rail network suffered from gridlock, particularly along the Gulf Coast. By March 1998 delays in shipments had cost rail customers approximately $1 billion in curtailed production, reduced sales, and higher shipping costs. The STB in November 1997 ordered UP to temporarily open a part of its freight business in its Houston hub to Kansas City Southern. In February 1998 UP and Burlington Northern Santa Fe reached an agreement to create a joint dispatching center for their Gulf Coast operations, share ownership of line between Houston and New Orleans, and allow UP to use Burlington Northern tracks between Beaumont and Navasota, Texas, as needed, to bypass Houston congestion. In addition to its difficulties digesting SP, Union Pacific was also under fire for its safety record. Following three fatal accidents, a joint safety team was formed in August 1997 to review safety across the UP system. The team consisted of UP managers, union employees, and Federal Railroad Administration representatives. Meanwhile, UP moved its headquarters from Bethlehem, Pennsylvania, to Dallas in September 1997.
In May 1998 Union Pacific Corporation announced that it planned to divest its Overnite trucking unit through an IPO, in order to further focus on its core rail business. But the IPO was abandoned following a deterioration in market conditions. An attempt to find a third-party buyer failed as well. In the fourth quarter of 1998 the corporation recorded a $547 million charge to reflect an impairment in Overnite's goodwill, leading to a net loss of $633 million for the year, a loss that was also due to UP railroad's service problems and system congestion. Another outcome of the railroad's service difficulties was the August 1998 announcement of a plan to decentralize its railroad management. The railroad was reorganized into three regions--southern, based in Houston; northern, based in Omaha; and western, based in Roseville, California.
In September 1998 Ike Evans was named president and COO of Union Pacific Railroad, succeeding Davis, who became vice-chairman until his retirement in March 1999. Evans had previously been a senior vice-president at Emerson Electric Company, a manufacturer of electrical, electromechanical, and electronic products and systems. In July 1999 Union Pacific Corporation moved its headquarters again, this time landing in Omaha, where its main subsidiary, Union Pacific Railroad, was located. The corporation continued to look for an opportunity to divest Overnite through an IPO or sale to a third party and was likely to be busy assimilating Southern Pacific well into the 21st century.
Principal Subsidiaries: Overnite Transportation Company; Southern Pacific Rail Corporation; Union Pacific Railroad Company.
Principal Operating Units: Union Pacific Railroad; Overnite Transportation; Union Pacific Technologies.
OVERALL
Beta: 1.13
Market Cap (Mil.): $50,244.09
Shares Outstanding (Mil.): 490.52
Annual Dividend: 1.90
Yield (%): 1.85
FINANCIALS
UNP Industry Sector
P/E (TTM): 17.59 16.14 18.80
EPS (TTM): 44.48 -- --
ROI: 7.22 6.43 4.19
ROE: 16.47 8.02 7.33
Statistics:
Public Company
Incorporated: 1969
Employees: 65,100
Sales: $10.55 billion (1998)
Stock Exchanges: New York
Ticker Symbol: UNP
NAIC: 482111 Line-Haul Railroads; 484122 General Freight Trucking, Long-Distance, Less Than Truckload; 551112 Offices of Other Holding Companies
Name Age Since Current Position
James Young 58 2007 Chairman of the Board, President, Chief Executive Officer of UPC and Railroad
Robert Knight 53 2004 Chief Financial Officer, Executive Vice President - Finance of UPC and the Railroad
J. Michael Hemmer 61 2004 Senior Vice President - Law, General Counsel of UPC and the Railroad
Barbara Schaefer 57 2004 Senior Vice President - Human Resources, Secretary of UPC and the Railroad
Jeffrey Totusek 52 2008 Vice President, Controller of UPC and Chief Accounting Officer and Controller of the Railroad
John Koraleski 60 1999 Executive Vice President - Marketing and Sales of the Railroad
Lance Fritz 48 2010 Executive Vice President - Operations of Railroad
Steven Rogel 68 2000 Lead Independent Director
Judith Hope 70 1998 Independent Director
Thomas Donohue 73 1998 Independent Director
Archie Dunham 72 2000 Independent Director
Michael McConnell 68 2004 Independent Director
Erroll Davis 66 2004 Independent Director
Charles Krulak 69 2006 Independent Director
Andrew Card 63 2006 Independent Director
Thomas McLarty 64 2006 Independent Director
Michael McCarthy 59 2008 Independent Director
Jose Villarreal 57 2009 Independent Director
COMPANY ADDRESS
Union Pacific Corp
1400 Douglas Street
Omaha NE 68179