Union Pacific Corporation

Thank you for accessing Union Pacific Corporation's 2021 First Quarter Earnings Conference Call, held at 845 Eastern Time on April 22, 2021, 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, as defined by 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. The 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. Thanks.

Greetings, and welcome to the Union Pacific First Quarter 2021 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, and good morning, everybody, and welcome to Union Pacific's first quarter earnings conference call. With me today in Omaha are Eric Gerringer, Executive Vice President of Operations, Kenny Rocker, Executive Vice President of Marketing and Sales, and Jennifer Heyman, our Chief Financial Officer. Before discussing first quarter results, I want to recognize our employees for their work during the major winter events we experienced in February and early March. Many of the communities we serve faced unprecedented weather conditions that damaged factories and made surface transportation nearly impossible. Our employees rose to the occasion to maintain or restore critical service in those areas while dealing with weather impacts to their own homes and families. We owe a debt of gratitude to our team as they again proved their resiliency, their grit, and their dedication to serve. Moving on to first quarter results. This morning, Union Pacific is reporting 2021 first quarter net income of $1.3 billion, or $2 a share. This compares to $1.5 billion or $2.15 per share in the first quarter of 2020. Our quarterly operating ratio came in at 60.1%, reflecting the impact of weather and rising fuel prices in the quarter. As you'll hear from the team, absent these items, our core results improved 150 basis points. We delivered strong productivity in very challenging conditions, and based on our core performance, I remain optimistic about the remainder of the year. In fact, we are affirming our 2021 guidance. While it was a tough quarter, it does not dampen our expectations. We're in a terrific position to take advantage of the improving economic outlook and grow our volume. Our service product, our cost structure, and continuing productivity set us up for an outstanding year. To get us started reviewing the details, I'll turn it over to Eric for an operations update.