Profile: Union Pacific Corp (UNP)

UNP on New York Consolidated

108.50USD
22 Sep 2014
Price Change (% chg)

$-0.86 (-0.79%)
Prev Close
$109.36
Open
$109.52
Day's High
$109.69
Day's Low
$108.47
Volume
2,364,175
Avg. Vol
2,880,727
52-wk High
$110.26
52-wk Low
$74.61

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Union Pacific Corporation (UPC), incorporated February 3, 1969, owns transportation companies. Its principal operating company, Union Pacific Railroad Company, links 23 states in the western 66% of the country. Union Pacific Railroad Company’s business mix includes agricultural products, automotive, chemicals, energy, industrial products and intermodal. Union Pacific Railroad Company connects with Canada’s rail systems and is the railroad serving six gateways to Mexico. Union Pacific Railroad Company (UPRR) is a Class I railroad operating in the United States. In June 2012, the Company’s wholly owned subsidiary, PS Technology (PST), acquired the Yard Control Systems division of Ansaldo STS USA.

As of December 31, 2010, the Company had 31,898 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and eastern the United States gateways and providing several corridors to Mexican gateways. It serves the western 66% of the country and maintains coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico. Export and import traffic moves through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders. Its freight traffic consists of bulk, manifest, and premium business. Bulk traffic is coal, grain, rock, or soda ash in unit trains. Manifest traffic is individual carload or less than train-load business, including commodities, such as lumber, steel, paper, food and chemicals. The transportation of finished vehicles, intermodal containers and truck trailers is part of its premium business.

Agricultural

During the year ended December 31, 2011, transportation of grains, commodities produced from these grains, and food and beverage products generated 18% of the Railroad’s freight revenue. The Company accesses grain markets, linking the Midwest and western producing areas to export terminals in the Pacific Northwest and Gulf Coast ports, as well as Mexico. It also serves domestic markets, including grain processors, animal feeders and ethanol producers in the Midwest, West, South and Rocky Mountain states. During 2011, unit trains, which transport a single commodity between producers and export terminals or domestic markets, represent nearly 40% of agricultural shipments.

Automotive

The Company is an automotive carrier west of the Mississippi River and operate or access over 40 vehicle distribution centers. The Railroad’s extensive franchise serves vehicle assembly plants and connects to West Coast ports and the Port of Houston to accommodate both import and export shipments. In addition to transporting finished vehicles, it provides expedited handling of automotive parts in both boxcars and intermodal containers destined for Mexico, the United States and Canada. During 2011, the automotive group generated 8% of Union Pacific’s freight revenue. During 2011, finished vehicles accounted for 78% of this revenue, with transportation of automotive parts and materials providing the remaining 22%.

Chemicals

During 2011, transporting chemicals generated 15% of its freight revenue. The Railroad’s franchise serves the chemical producing areas along the Gulf Coast. Its chemical franchise also accesses chemical producers in the Rocky Mountains and on the West Coast. The Company’s chemical shipments include three categories: petrochemicals, fertilizer and soda ash. Petrochemicals include industrial chemicals, plastics, petroleum products, including crude oil from North Dakota, and liquid petroleum gases. These products move to and from the Gulf Coast region. Fertilizer movements originate in the Gulf Coast region, the western part of the United States and Canada for delivery to agricultural users in the Midwest, western the United States and abroad. Soda ash originates in south-western Wyoming and California, destined for chemical and glass producing markets in North America and abroad.

Energy

During 2011, coal and petroleum coke transportation accounted for 22% of its freight revenue. The Railroad’s network supports the transportation of coal and petroleum coke to utilities and industrial facilities throughout the United States. Through interchange gateways and ports, its reach extends to eastern the United States utilities, Mexico, Europe and Asia. Water terminals allow the Railroad to move western the United States coal east through the Mississippi and Ohio Rivers, as well as the Great Lakes. Export coal moves through West Coast ports to Asia and through Mississippi River and Gulf Coast terminals to Europe.

Industrial Products

The Company’s network facilitates the movement of commodities between thousands of origin and destination points throughout North America. The Industrial Products commodity group consists of categories, including construction products, metals, minerals, paper, consumer goods, lumber and other miscellaneous products. During 2011, this group generated 17% of its total freight revenue. Commercial and highway construction drives shipments of steel and construction products, consisting of rock, cement and roofing materials. Industrial manufacturing plants receive nonferrous metals and industrial minerals. Paper and consumer goods, including furniture and appliances, move to metropolitan areas for consumers. Lumber shipments originate in the pacific northwest and Canada and move throughout the United States for use in new home construction and repair and re-modeling.

Intermodal

The Company’s Intermodal business includes two shipment categories: international and domestic. International business consists of imported and exported container traffic, which passes through West Coast ports served by its terminal network. Domestic business includes container and trailer traffic picked up and delivered within North America for intermodal marketing companies, as well as truckload carriers. Less-than-truckload and package carriers with time-sensitive business requirements are also an important part of these domestic shipments. During 2011, international and domestic business generated 20% of UP’s freight revenue.

The Company competes with Burlington Northern Santa Fe Corporation.

Company Address

Union Pacific Corp

1400 DOUGLAS STREET
OMAHA   NE   68179
P: +1402.5445000
F: +1402.2716408

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