Union Pacific Announces Solid Fourth-Quarter Results But Points To Job Losses
Union Pacific Corp. announced a record $1.55 Billion or $ 2.13 a share for the fourth quarter of 2018. For the same period in 2017, the railroad reported in Omaha, Nebraska, adjusted rates significantly higher of about $7.3 Billion, or $9.25 per share. The company said that the significant dissimilarity amid the figures for the fourth quarter of 2017 and 2018 is the result of previously announced adjustments depicting the collision of corporate tax reform.
In its form of Securities and Exchange Commission 10-K of February 2018, the company said, “The tax law reduced federal tax rate from 35% to 21% from January 1, 2018. Consequently, we have reassessed our assets and deferred tax liabilities, resulting in a reduction of $ 5.9 Billion in our non-cash income tax expense in 2017.”
Figures for the fourth quarter show that the company surpassed Wall Street expectations by 6 cents per share, according to a survey by Zacks Investment Research. The quarterly turnover of the rail company was $5.76 Billion.
Last year, the railroad is shifted to work more efficiently, saving 1,200 locomotives, eager to achieve productivity gains of $500 Million, according to the company employees stated will comprise job losses as well. In October, the railroad announced that 500 new jobs would be reduced after job losses in the last two years.
The fourth-quarter operating rate was 61.6. The operating ratio is a company’s operating costs as a percentage of turnover and is used to determine efficiency. The lower the ratio, the better the company can generate profits.
For the year 2018 the railway company recorded a net profit of about $6 Billion, or $7.95 per share. Once again, the numbers for 2018 are below those for 2017 and the company pointed out those year-end figures includes adjustments that are already announced reflecting the impact of corporate tax reform.