Union Pacific Corporation

Eastern Time on April 18, 2019 in Omaha, Nebraska. This presentation and the accompanying materials include statements that contain estimates, projections, or expectations regarding the company's financial results and operations and future economic conditions. These statements are forward-looking statements defined by the federal securities laws. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Materials accompanying this presentation include more detailed information regarding forward-looking information and these risks and uncertainties. In addition, please refer to the company's website and SEC filings for additional information about our risk factors.

Greetings and welcome to the Union Pacific first quarter 2019 conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded, and the slides for today's presentation are available on Union Pacific's website. It is now my pleasure to introduce your host, Mr. Lance Fritz, Chairman, President, and CEO for Union Pacific. Thank you, Mr. Fritz. You may begin.

Thank you, Rob, and good morning, everybody, and welcome to Union Pacific's first quarter earnings conference call. With me today in Omaha are Kenny Rocker, Executive Vice President of Marketing and Sales, Jim Venna, Chief Operating Officer, and Rob Knight, Chief Financial Officer. This morning, Union Pacific is reporting record 2019 first quarter net income of $1.4 billion, or $1.93 per share. This represents an increase of 6% in net income and 15% in earnings per share compared to 2018. Total volume decreased 2% in the quarter compared to last year. Quarterly operating ratio came in at 63.6%, a one-point improvement compared to the first quarter of 2018. Severe winter weather and flooding across our network adversely impacted volumes and added incremental operating costs in the quarter. In spite of these headwinds, we still achieved year-over-year margin improvement as a result of our G55 and 0 and Unified Plan 2020 efforts. I am extremely proud of the men and women of Union Pacific and applaud their heroic efforts to safely restore our rail network. Our ability to quickly recover operations after severing the east-west artery of our network is unprecedented. I also want to thank our customers for working with us during these historic weather challenges. With these incidents behind us, our operating performance is rapidly improving, enabling us to provide a safe, reliable, and efficient service product for our customers. We've largely completed our initial transportation plan changes associated with Unified Plan 2020 and well ahead of schedule. But these changes are really just the foundation for the great opportunities we see going forward, like our terminal rationalization initiative that Jim will touch on later. With that, I'll turn it over to Kenny to provide more details on our results.