Union Pacific Industry Trends
The purpose of this is to display my research for the first assignment of BUS 1100 class. The assignment was to research a designated Fortune 500 company and answer allocated information about the company. My assigned company was Union Pacific.
Industry Trends
Union Pacific Corporation (NYSE:UNP) is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across two-thirds of the United States.
The primary long-term trend in commercial transportation is the ongoing improvement of speed, service, flexibility, and area served, with costs declining as a proportion of the value of delivered goods. Shipments that, hundreds of years …show more content…
ago, would have taken several months for delivery and cost a fortune, now can be delivered overnight for a reasonable sum. Each segment of the transportation industry plays an important role in delivering these improvements. More recently, the process of transportation has been beneficial from the internet. It is now easier for companies to send and request supplies and packages. The internet also makes easier to track and monitor the transportation of goods. In the overall transportation industry, we believe that long-term growth and market share will be determined primarily by a segment's exposure to lower-value bulk freight versus higher-value freight. We expect air freight, with its relatively high value and time-intensive freight profile, to gradually grow in market share; we expect trucking, with its blend of bulk and general freight, to see steady market share; and we expect railroads, with bulk freight representing the majority of business, to grow more slowly and thus gradually lose market share.
For railroads to capture a larger part of the freight market, railroads must improve service further. Although intermodal service is generally not currently acceptable for shippers working with narrow delivery windows, it is not hard to imagine a day when intermodal offers the same real-time, online shipment tracking services available from ground package carriers, inspiring the confidence of the shipping public. To improve intermodal service, terminals may have to be enlarged to ensure more fluid movement of trains, and new freight cars, locomotives, and signaling systems may be purchased. Ways to shorten transit times are to double- and triple-track mainlines, increase miles of sidings, and cover more miles under centralized traffic control. (Sidings are short stretches of track onto which a train temporarily moves so that another train, coming from an opposite direction, may bypass it.)
Ratios and Statistics
Ton-miles.
This quarterly calculation, issued by the Association of American Railroads, an industry trade group, measures total industry shipment weight times the average length of haul. It is the best measure of rail freight movement. Standard & Poor's estimates that ton-miles rose 2.2% in 2005. For 2004, US Class I railroad ton-miles increased 7.2% to 1.663 trillion ton-miles; for 2003, volume rose 2.9% to 1.551 trillion ton-miles. Originated tonnage. Originated tonnage is another measure supplied by the Association of American Railroads. It is the total volume handled by freight railroads. Standard & Poor's estimates that originated tonnage rose to 1.88 billion tons in 2005. Class I railroads originated 1.844 billion tons in 2004, up from 1.80 billion tons in 2003, 1.77 billion tons in 2002, and 1.74 billion tons in both 2000 and 2001. Because the growth rate for ton-miles (measuring both distance and volume) has outstripped that for originated tons, it is apparent that rail traffic growth has come primarily from hauling freight longer distances. Chief Executive Office Union Pacific Main Office1400 Douglas Stomata, NE 68179 James R. Young, President, CEO, and Director; Chairman and CEO, Union Pacific Railroad Top Competitors Burlington Northern Santa Fe/CSX/ Norfolk Southern Scoop of
Operations Union Pacific has roughly 48,000 employees. Union Pacific decentralized its management into three regions (north, south, and west) in 1998 to improve traffic flow. It also hired more workers, added new trains, and realigned routes, while selling Skyway Freight Systems, its logistics services unit.
In 1999 Union Pacific moved its headquarters from Dallas to Omaha, Nebraska, where Union Pacific Railroad offices already were located. In 2000 it formed Fenix, a holding company charged with developing and expanding the company's telecommunications and technology assets. (By 2003, however, UP had reabsorbed Fenix and scaled back its support for its remaining technology subsidiaries.)
Financial Results Basic Financial Information
Company Type Public (NYSE: UNP)
D&B D-U-N-S Number 048341283
Fiscal Year-End December
Financial Filings SEC
Auditor Deloitte & Touche LLP
Annual Report Company Web Site
Investor Relations Company Web Site
Financial Overview
Last Close 24-Feb-2006 $88.46
52-Week High $90.14
52-Week Low $60.85
Basic EPS $3.85
Price/Earnings Ratio 22.98
Current Ratio 0.74
R&D Expense (mil.) --
Advertising Expense (mil.) --
% Owned by Institutions 84.40%
2005 2004 2003 2002
Annual Sales ($ mil.) 13,578.0 12,215.0 11,551.0 12,491.0
Annual Net Income ($ mil.) 1,026.0 604.0 1,585.0 1,341.0
Stock Price
02/26/06 17:47:03 NYSE $88.46 0.06 0.07%
Previous Close 88.4000 Open 88.5000
Bid 0.0000 Bid Size 0
Ask 0.0000 Ask Size 0
High 89.0500 52 Wk High 90.1400
Low 87.7800 52 Wk Low 60.8500
Restricted No Volume 626,300
Pricing delayed 20 minutes. Vision Statement
Union Pacific is committed to be a railroad where our customers want to do business, our employees are proud to work, shareholder value is created and the safety of the public and our employees is our top priority.
Code of Ethics
No Code of Ethics was included on the Union Pacific web site.
Current Career Opportunities
Railcar Detector Operator (Department: Information Technologies) Operation of rail detector car, as well as outdoor visual inspections.
Claims Trainee / Claims Rep / Senior Claims Rep (Department: Law) The basic purpose of this position is to manage and execute field claim processes with regard to employee injuries and other personal injury claims or allegations against the Company.
Endnotes 1. West, Andrew. "Transportation: Commercial." Standard and Poor's. 9 Feb. 2006. 27 Feb. 2006 2. West, Andrew. "Transportation: Commercial." Standard and Poor's. 9 Feb. 2006. 27 Feb. 2006
3. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=11544>.
4. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/competitors.xhtml?ID=11544/>.
.
5. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/profile.xhtml?ID=11544>
6. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/fin/factsheet.xhtml?ID=11544/>.
7. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 .
8. http://www.uprr.com/she/emg/env_vision.shtml
9. No Code of Ethics was included on the Union Pacific web site.
10. http://www.uprr.com/employment/index.shtml
Industry Trends
Union Pacific Corporation (NYSE:UNP) is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across two-thirds of the United States.
The primary long-term trend in commercial transportation is the ongoing improvement of speed, service, flexibility, and area served, with costs declining as a proportion of the value of delivered goods. Shipments that, hundreds of years …show more content…
ago, would have taken several months for delivery and cost a fortune, now can be delivered overnight for a reasonable sum. Each segment of the transportation industry plays an important role in delivering these improvements. More recently, the process of transportation has been beneficial from the internet. It is now easier for companies to send and request supplies and packages. The internet also makes easier to track and monitor the transportation of goods. In the overall transportation industry, we believe that long-term growth and market share will be determined primarily by a segment's exposure to lower-value bulk freight versus higher-value freight. We expect air freight, with its relatively high value and time-intensive freight profile, to gradually grow in market share; we expect trucking, with its blend of bulk and general freight, to see steady market share; and we expect railroads, with bulk freight representing the majority of business, to grow more slowly and thus gradually lose market share.
For railroads to capture a larger part of the freight market, railroads must improve service further. Although intermodal service is generally not currently acceptable for shippers working with narrow delivery windows, it is not hard to imagine a day when intermodal offers the same real-time, online shipment tracking services available from ground package carriers, inspiring the confidence of the shipping public. To improve intermodal service, terminals may have to be enlarged to ensure more fluid movement of trains, and new freight cars, locomotives, and signaling systems may be purchased. Ways to shorten transit times are to double- and triple-track mainlines, increase miles of sidings, and cover more miles under centralized traffic control. (Sidings are short stretches of track onto which a train temporarily moves so that another train, coming from an opposite direction, may bypass it.)
Ratios and Statistics
Ton-miles.
This quarterly calculation, issued by the Association of American Railroads, an industry trade group, measures total industry shipment weight times the average length of haul. It is the best measure of rail freight movement. Standard & Poor's estimates that ton-miles rose 2.2% in 2005. For 2004, US Class I railroad ton-miles increased 7.2% to 1.663 trillion ton-miles; for 2003, volume rose 2.9% to 1.551 trillion ton-miles. Originated tonnage. Originated tonnage is another measure supplied by the Association of American Railroads. It is the total volume handled by freight railroads. Standard & Poor's estimates that originated tonnage rose to 1.88 billion tons in 2005. Class I railroads originated 1.844 billion tons in 2004, up from 1.80 billion tons in 2003, 1.77 billion tons in 2002, and 1.74 billion tons in both 2000 and 2001. Because the growth rate for ton-miles (measuring both distance and volume) has outstripped that for originated tons, it is apparent that rail traffic growth has come primarily from hauling freight longer distances. Chief Executive Office Union Pacific Main Office1400 Douglas Stomata, NE 68179 James R. Young, President, CEO, and Director; Chairman and CEO, Union Pacific Railroad Top Competitors Burlington Northern Santa Fe/CSX/ Norfolk Southern Scoop of
Operations Union Pacific has roughly 48,000 employees. Union Pacific decentralized its management into three regions (north, south, and west) in 1998 to improve traffic flow. It also hired more workers, added new trains, and realigned routes, while selling Skyway Freight Systems, its logistics services unit.
In 1999 Union Pacific moved its headquarters from Dallas to Omaha, Nebraska, where Union Pacific Railroad offices already were located. In 2000 it formed Fenix, a holding company charged with developing and expanding the company's telecommunications and technology assets. (By 2003, however, UP had reabsorbed Fenix and scaled back its support for its remaining technology subsidiaries.)
Financial Results Basic Financial Information
Company Type Public (NYSE: UNP)
D&B D-U-N-S Number 048341283
Fiscal Year-End December
Financial Filings SEC
Auditor Deloitte & Touche LLP
Annual Report Company Web Site
Investor Relations Company Web Site
Financial Overview
Last Close 24-Feb-2006 $88.46
52-Week High $90.14
52-Week Low $60.85
Basic EPS $3.85
Price/Earnings Ratio 22.98
Current Ratio 0.74
R&D Expense (mil.) --
Advertising Expense (mil.) --
% Owned by Institutions 84.40%
2005 2004 2003 2002
Annual Sales ($ mil.) 13,578.0 12,215.0 11,551.0 12,491.0
Annual Net Income ($ mil.) 1,026.0 604.0 1,585.0 1,341.0
Stock Price
02/26/06 17:47:03 NYSE $88.46 0.06 0.07%
Previous Close 88.4000 Open 88.5000
Bid 0.0000 Bid Size 0
Ask 0.0000 Ask Size 0
High 89.0500 52 Wk High 90.1400
Low 87.7800 52 Wk Low 60.8500
Restricted No Volume 626,300
Pricing delayed 20 minutes. Vision Statement
Union Pacific is committed to be a railroad where our customers want to do business, our employees are proud to work, shareholder value is created and the safety of the public and our employees is our top priority.
Code of Ethics
No Code of Ethics was included on the Union Pacific web site.
Current Career Opportunities
Railcar Detector Operator (Department: Information Technologies) Operation of rail detector car, as well as outdoor visual inspections.
Claims Trainee / Claims Rep / Senior Claims Rep (Department: Law) The basic purpose of this position is to manage and execute field claim processes with regard to employee injuries and other personal injury claims or allegations against the Company.
Endnotes 1. West, Andrew. "Transportation: Commercial." Standard and Poor's. 9 Feb. 2006. 27 Feb. 2006 2. West, Andrew. "Transportation: Commercial." Standard and Poor's. 9 Feb. 2006. 27 Feb. 2006
3. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=11544>.
4. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/competitors.xhtml?ID=11544/>.
.
5. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/profile.xhtml?ID=11544>
6. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 < http://premium.hoovers.com/subscribe/co/fin/factsheet.xhtml?ID=11544/>.
7. Bryant, James. "Union Pacific Corporation." Hoovers: A D&B Company. 27 Feb. 2006 .
8. http://www.uprr.com/she/emg/env_vision.shtml
9. No Code of Ethics was included on the Union Pacific web site.
10. http://www.uprr.com/employment/index.shtml