Union Pacific reports lower net income for full-year 2016

The Omaha, Neb.-based Class I railway posted a net income of $4.2 billion for 2016, an 11 percent decline from 2015.    Union Pacific Corporation reported a net income of $4.2 billion on revenues of $19.9 billion for 2016, year-over-year declines of 11 percent and 9 percent, respectively, according to the company’s latest financial statements.
   The Omaha, Neb.-based Class I railway’s business volumes for the full year, as measured by total revenue carloads, fell 7 percent from 2015. For the full year, increasing agricultural volumes were offset by flat automotive volumes and lower volumes in the chemicals, coal, industrial products and intermodal segments.
   “While full-year volumes were down substantially year-over-year, we did see declines moderate in the fourth quarter,” Union Pacific Chairman, President and CEO Lance Fritz said. For the fourth quarter of 2016, business volumes were down 3 percent from a year prior.
   Union Pacific’s net income for the fourth quarter reached $1.1 billion, up 2 percent from a year earlier, while operating revenues totaled $5.2 billion, down 1 percent for a year prior.
   “Looking to 2017, we are fairly optimistic about some of the macro-economic indicators that drive our core business,” Fritz said. “Higher energy prices, favorable agricultural markets and improving business and consumer confidence all support a return to positive volume growth this year.”