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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 17, 1997
Union Pacific Corporation
(Exact Name of Registrant as Specified in Charter)
Utah 1-6075 13-2626465
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1717 Main Street, Suite 5900, Dallas, Texas 75201
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (214) 743-5600
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Item 5. Other Events.
Attached as an Exhibit is the Press Release issued issued by Union
Pacific Corporation on November 17, 1997, which is incorporated
herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99 Press Release dated November 17, 1997 describing the
Union Pacific Railroad Company service situation and
estimated financial impact of the service recovery
effort.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Union
Pacific Corporation has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
November 17, 1997
UNION PACIFIC CORPORATION
By:/S/ Carl W. von Bernuth
--------------------------
Name: Carl W. von Bernuth
Title: Vice President & General Counsel
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Exhibit Index
Exhibit Description
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99 Press Release dated November 17, 1997
describing the Union Pacific Railroad Company
service situation and estimated financial
impact of the service recovery effort.
EXHIBIT 99
FOR IMMEDIATE RELEASE:
DALLAS, November 17 -- Union Pacific Corporation (NYSE:UNP) reported
today that its railroad subsidiary continues to make steady progress with its
Service Recovery Plan. The most recent weekly service indicators filed with
the Surface Transportation Board reflect improvement in several key areas.
Among them:
-- Average freight car inventory is down by nearly 17,000 cars since
the recovery plan was launched, to 339,303. On November 13, inventory
dipped to below 337,000, the lowest daily total since mid-August.
-- The number of sidings blocked south of Kansas City, 43, has been
reduced by two-thirds from the peak, while the sidings blocked system-wide
continued to fall, to 111.
-- The average number of trains held for crews declined to 56, an
improvement of 43 percent from the previous week, as train crews around the
system responded to the need to structure their work schedule to allow
coverage over critical weekend days when the railroad's traffic is heaviest.
-- The Fort Worth/Dallas metro complex is operating more fluidly than
it has all year.
-- Operations at the Mexican gateways have been restored to near normal
levels.
"The recovery plan is working," said Dick Davidson, Union Pacific
chairman and chief executive officer. "We've made significant progress,
especially in Texas and the rest of the southern tier. But we must move at
an even faster pace in order to re-earn the confidence of our customers. This
is our one and only goal."
Accordingly, the railroad is working on additional measures to help
strengthen and speed the recovery.
-- Directional running has been instituted on the UP/SP lines between
Houston and Brownsville, TX.
-- Every possible way to temporarily reduce traffic on the UP/SP system
is under review. This includes seeking additional assistance from other
railroads.
-- Bonuses are being offered to train crews that agree to report to
work on Friday, Saturday and Sunday of Thanksgiving weekend.
As a result of the congestion-related problems, and the incremental
costs of the Service Recovery Plan, earnings per share for all of 1997 are
expected to be less than 1996 pro forma results. Given the uncertainties
associated with estimating the continuing impact of the congestion-related
problems and the Service Recovery Plan on the railroad, the outlook for the
fourth quarter is unclear. Based on various assumptions, fourth quarter
results could range from close to break-even to a substantial loss.
"While we realize these additional measures will have an impact on our
near-term financial results, our number one priority must be to complete our
service recovery as rapidly as possible, " Davidson said. "It is absolutely
critical that we get these congestion problems behind us so that we can
restore quality service to our customers and move forward to achieve the
benefits of our merger."
(This press release contains forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934. This information is based on facts available at this time, and is
subject to risks and uncertainties that could cause actual results to differ
materially from those expressed above. Important facts that could cause such
differences include, but are not limited to, whether the Service Recovery
Plan achieves its goals; industry competition and regulatory developments;
natural events such as severe weather, floods and earthquakes; the effects
of adverse economic conditions affecting the Company's shippers; changes in
fuel prices; and the ultimate outcome of environmental investigations or
proceedings and other types of claims and litigation.)
Media inquiries should be directed to John Bromley at Union Pacific Railroad
(402) 271-3475.
