Union Pacific Corporation · NYSE:UNP
Union Pacific — Bear Stearns conference 2004
12 slides from Union Pacific's conference presentation, May 11, 2004
Slide 1: Bear Stearns
Bear Stearns Jim Young May 11, 2004
Slide 2: Disclosure Statement
Disclosure Statement This presentation and related materials may contain statements about the Corporation's future that are not statements of historical fact. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934
Slide 3: First Quarter Review
First Quarter Review • 6% Revenue Growth from Strong Demand • Solid Pricing Environment • Operating Inefficiencies – $90 Million of Incremental Costs • Managing Customer Expectations Demand Greater Than Current Capacity
Slide 4: Business Outlook
Business Outlook Monthly Carloadings Growth 2004 2004 Vs Vs 2003 2003 +9% • Managed Intermodal Volume & Embargos • Chemical Franchise +3% +2% • Wheat Volumes Continue +1% Jan Feb Mar Apr
Slide 5: Network Status
Network Status Velocity AAR AAR Reported Reported MPH MPH • Stabilization in April 22.3 22.3 22.1 22.1 21.4 21.4 21.4 21.4 • Record 7-Day Carloadings – March & April Avg Exceeds 180,000 • Recovery Efforts in Place Jan Jan Feb Feb Mar Mar Apr Apr Terminal Dwell Freight Cars On-Line AAR AAR Reported R
Slide 6: Train Crews
Train Crews TE&Y Program 2004 2004 Graduates Graduates 1,365 1,350 961 600* 325 Q1 Q1 Act Act Q2 Q2 Est Est Q3 Q3 Est Est Q4 Q4 Est Est ** Graduates Graduates in in train train service service -- from from April April 11 to to May May 9. 9.
Slide 7: Locomotives
Locomotives Acquisition Plan Q1 Q2E Q3E Q4E New 35 64 80 91 Short-Term 183 167 --- --- 218 231 80 91
Slide 8: "Metering" Business
“Metering” Business • Match Demand with Capacity • Targeted Pricing Actions – Increase Overall Returns – Improve Price Flexibility
Slide 9: Capacity Improvements
Capacity Improvements CTC Signaling Beltline Connection Double Tracking Capacity Improvements Intermodal Terminals
Slide 10: 2004 Outlook
2004 Outlook • Velocity Improvement is Key • Continued Business Strength – Positive Pricing Environment • High Energy Costs – Increase Fuel Surcharges • $2.1 Billion Capital Plan • Free Cash Flow Target Impacted
Slide 11: Long-Term Growth Potential
Long-Term Growth Potential Truck/Barge Conversion Potential Ag Products ++ Autos + Chemicals + Energy + Industrial +++ Intermodal ++++ TOTAL 0% 1% 2% 3% 4% 5% 6% 7%
Slide 12: Union Pacific Corporation
Union Pacific Corporation UNION PACIFIC BUILDING AMERICA“