Union Pacific Corporation (UNP) has reported 2.42 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $1,144 million, or $1.39 a share in the quarter, compared with $1,117 million, or $1.31 a share for the same period last year.
Revenue during the quarter went down marginally by 0.77 percent to $5,168 million from $5,208 million in the previous year period. Gross margin for the quarter contracted 20 basis points over the previous year period to 91.66 percent. Total expenses were 61.98 percent of quarterly revenues, down from 63.17 percent for the same period last year. This has led to an improvement of 119 basis points in operating margin to 38.02 percent.
Operating income for the quarter was $1,965 million, compared with $1,918 million in the previous year period.
"While full-year volumes were down substantially year over year, we did see declines moderate in the fourth quarter," said Lance Fritz, Union Pacific chairman, president and chief executive officer. "As we worked through the challenges of the year, we remained focused on the strategy we live each day through our six value tracks. Executing on these value tracks enables us to run a safe, efficient, and productive railroad while providing our customers an excellent value proposition."
Operating cash flow improves marginally
Union Pacific Corporation has generated cash of $7,525 million from operating activities during the year, up 2.46 percent or $181 million, when compared with the last year.
The company has spent $3,393 million cash to meet investing activities during the year as against cash outgo of $4,476 million in the last year.
The company has spent $4,246 million cash to carry out financing activities during the year as against cash outgo of $3,063 million in the last year period.
Cash and cash equivalents stood at $1,277 million as on Dec. 31, 2016, down 8.20 percent or $114 million from $1,391 million on Dec. 31, 2015.
Debt moves up
Union Pacific Corporation has witnessed an increase in total debt over the last one year. It stood at $15,007 million as on Dec. 31, 2016, up 5.68 percent or $806 million from $14,201 million on Dec. 31, 2015. Total debt was 26.93 percent of total assets as on Dec. 31, 2016, compared with 26.01 percent on Dec. 31, 2015. Debt to equity ratio was at 0.75 as on Dec. 31, 2016, up from 0.69 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 11.29 for the quarter from 11.70 for the same period last year.
