Union Pacific sees FY2018 operating revenue of 62.7%, improved cost performance
Union Pacific provided an update on its expectations for full-year 2018 operating ratio performance. On November 29 , the company stated that it did not expect its full-year operating ratio to improve as compared to full-year 2017 due to slowing revenue growth and higher costs associated with employee severance and operational inefficiencies. The company now expects to report a record full-year 2018 operating ratio of 62.7%, a 0.1 point improvement from its 2017 adjusted non-GAAP operating ratio performance. Drivers of this improvement versus previous expectations included higher revenue, lower diesel fuel prices and improved cost performance. "December carloadings were stronger than expected, led by international container imports," said Rob Knight, Executive Vice President and Chief Financial Officer. "We are also encouraged to see improved cost performance driven by early results from our Unified Plan 2020 implementation."