Union Pacific Seeing Strong Demand Across the Board, CEO Says

Union Pacific CEO Lance Fritz discusses the impact of severe winter weather and fuel surcharge lag on the company's margins and EPS. Despite these challenges, the core business remains strong with good demand across various sectors, including automotive, housing, and construction. The chip shortage affects auto shipments, but improvements are expected by the end of the second quarter. Port congestion impacts the supply chain, but Union Pacific is increasing capacity and working on transparency. The company is hiring in specific areas and offers competitive wages. Business consolidation north of the border is monitored for potential impacts. Union Pacific advocates for fair regulatory evaluations of mergers. The rail system's lower carbon intensity is helping gain market share over trucking.

What were the two main factors that impacted Union Pacific's margins and EPS in the quarter?

• Labor strikes and equipment failures

• Increased competition and higher taxes

• Decreased demand and rising fuel costs

• Severe winter weather and a fuel surcharge lag effect

Which industry is experiencing strong demand despite being affected by a chip shortage?

• Automotive industry

• Pharmaceutical industry

• Textile industry

• Agriculture industry

How has Union Pacific responded to port congestion issues?

• By reducing shipping rates

• By increasing capacity to take boxes off port docks

• By outsourcing logistics to third-party companies

• By halting international shipments

What is the current status of Union Pacific's workforce?

• Rapidly expanding with many new hires

• Stable with minimal hiring

• Undergoing a major restructuring

• Facing significant layoffs

What is Union Pacific's stance on the proposed transactions involving CPR, CN, and KCS?

• They advocate for a full evaluation under existing merger rules

• They oppose the transactions entirely

• They have no opinion on the matter

• They support the transactions without conditions

How is Union Pacific gaining market share over trucking?

• By providing lower carbon intensity shipping options

• By offering faster delivery times

• By expanding into new international markets

• By reducing shipping costs significantly

Which recent business win is part of Union Pacific's contribution to the circular economy?

• A new coal transportation contract

• A contract for shipping crushed glass

• A deal with a large retail chain

• A partnership with a major airline