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[CNJRoss]

 

 

Union Pacific Corporation Declares Third Quarter 2017 Dividend

 

Omaha, Neb., July 27, 2017

 

The Board of Directors of Union Pacific Corporation (NYSE: UNP) has declared a quarterly dividend of 60.5 cents per share on the company's common stock, payable September 29, 2017, to shareholders of record August 31, 2017.

Union Pacific has paid dividends on its common stock for 118 consecutive years.

 

[CNJRoss]

BNSF Performance Summary (excerpt):

 

August 4, 2017

 

BNSF's Second-Quarter 2017 Financial Performance:

Volumes, Revenues and Expenses

 

Volumes and Revenues

Second quarter and first six months of 2017 operating income were $1.8 billion and $3.4 billion, respectively, an increase of $300 million (20 percent) and $389 million (13 percent), respectively, compared to the same periods in 2016. Total revenues for the second quarter and first six months of 2017 were up 15 percent and 12 percent, respectively, compared with the same periods in 2016. This is a result of increases in unit volume for the second quarter and first six months of 2017 of 9 percent and 8 percent, respectively, and higher average revenue per car/unit.    

 

The increase in average revenue per car/unit in 2017 was primarily due to higher fuel surcharges and business mix changes as well as increased rates per car/unit.

 

Business unit second quarter and first half of 2017 volume highlights:

• Consumer Products volumes were up 6 percent for the second quarter and the first six months of 2017, compared with the same periods in 2016, due to higher domestic intermodal, international intermodal and automotive volumes. The increases were primarily due to higher market share, improving economic conditions and normalizing of retail inventories.  
• Industrial Products volumes increased 4 percent and 2 percent for the second quarter and the first six months of 2017, respectively, compared with the same periods in 2016, primarily due to higher minerals, steel, and other commodities that support domestic drilling activity as well as higher taconite. The volume increase was partly offset by lower petroleum products volume due to pipeline displacement of U.S. crude traffic and lower plastics volume.
• Agricultural Products volumes were up 14 percent and 8 percent for the second quarter and the first six months of 2017, respectively, compared with the same periods in 2016, due to higher grain exports.
• Coal volumes increased 21 percent and 20 percent for the second quarter and the first six months of 2017, respectively, compared with the same periods in 2016, due to mild winter weather in the first quarter of 2016 and higher natural gas prices in the first half of 2017, which led to increased utility coal usage, partially offset by the effects of unit retirements of coal generating facilities.

SNIP

 

Expenses

Operating expenses for the second quarter and first half of 2017 were up 12 percent and 11 percent, respectively, compared with the same periods in 2016, as a result of increased volumes and inflation, including higher fuel prices. A significant portion of the increase is due to the following factors:

• Compensation and benefits increased 10 percent and 8 percent for the second quarter and first six months of 2017, respectively, compared with the same periods in 2016, due to higher health and welfare costs, wage inflation and increased volumes.
• Fuel expense was up 34 percent and 43 percent in the second quarter and first six months of 2017, respectively, compared with the same periods in 2016, due to higher average fuel prices and increased volumes, partially offset by improved fuel efficiency of 3 percent in the second quarter and for the first six months of the year. Locomotive fuel price per gallon increased 22 percent for the second quarter of 2017 to $1.68 and increased 33 percent for the first six months of 2017 to $1.70.
• Depreciation expense was up 12 percent and 11 percent for the second quarter and first six months of 2017, compared to the same periods in 2016, primarily due to a larger depreciable asset base. 

 

Complete report with additional detail.

 

[CNJRoss]

UP news release:

 

Union Pacific Corporation Declares Third Quarter 2017 Dividend

Omaha, Neb., July 27, 2017

 

The Board of Directors of Union Pacific Corporation (NYSE: UNP) has declared a quarterly dividend of 60.5 cents per share on the company's common stock, payable September 29, 2017, to shareholders of record August 31, 2017.

 

Union Pacific has paid dividends on its common stock for 118 consecutive years.

 

[CNJRoss]

KCS news release:

 

Kansas City Southern Announces Dividend Increase and New Share Repurchase Program

 

 

Kansas City, Mo., August 15, 2017.  Kansas City Southern (KCS) (NYSE: KSU) announced that its Board of Directors approved at its meeting today two actions to return capital to KCS’s shareholders as part of KCS’s capital allocation plan:

1. An increase in the quarterly dividend on KCS’s common stock from $0.33 to $0.36 per share.  The board declared a common stock dividend at this increased amount payable on October 4, 2017, to stockholders of record at the close of business on September 11, 2017.
2. A new $800 million share repurchase program, which replaces the Company’s previous $500 million program announced in 2015 and completed in the second quarter of 2017.  The new authorization includes: (a) a $200 million Accelerated Share Repurchase program, which will be launched immediately and is expected to be completed by early in the fourth quarter of 2017; and ( a $600 million open market purchase program expiring June 30, 2020.

“Our announcement today reflects our optimism with regard to KCS’s long-term business prospects,” said Pat Ottensmeyer, CEO and President. “We seek to maintain a strong balance sheet and preserve financial flexibility by funding these actions with cash on hand and future cash flow from operations, continuing our emphasis on balancing the needs of our fixed income and equity investors.” 

 

Approximately 1.6 million of the shares to be repurchased under the Accelerated Share Repurchase program will be received by KCS on August 16, 2017. The total number of shares ultimately repurchased under the program will be determined upon final settlement and will be based on the volume-weighted average price of KCS’s common stock during the applicable valuation period, less a discount.

 

Also at today’s meeting, the directors declared a regular dividend of $0.25 per share on the outstanding KCS 4% Non-Cumulative Preferred stock.  This dividend is payable on October 3, 2017, to stockholders of record at the close of business on September 11, 2017.