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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) January 28, 1998
Union Pacific Railroad Company
(Exact Name of Registrant as Specified in Charter)
Utah 1-01324 13-6400825
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1416 Dodge Street, Omaha, Nebraska 68179
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (402) 271-5000
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Item 5. Other Events.
Attached as an Exhibit is the Press Release issued by Union Pacific
Corporation on January 22, 1998, which is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99 Press Release dated January 22, 1998 discussing fourth
quarter and full year 1997 financial results.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Union Pacific Railroad Company has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
January 28, 1998
UNION PACIFIC RAILROAD COMPANY
By:/S/ Carl W. von Bernuth
-----------------------------
Name: Carl W. von Bernuth
Title: Senior Vice President,
General Counsel & Corporate
Secretary
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Exhibit Index
_____________
Exhibit Description
99 Press Release dated January 22, 1998
discussing fourth quarter and full year 1997
financial results.
EXHIBIT 99
FOR IMMEDIATE RELEASE:
UNION PACIFIC ANNOUNCES FOURTH QUARTER RESULTS
Dallas, Texas, January 22, 1998 -- Union Pacific Corporation today reported
a net loss of $152 million, or $.62 per share, in the fourth quarter of 1997,
reflecting the impact of severe congestion at its railroad subsidiary during
the quarter, as well as the costs of its Service Recovery Plan. In total,
the Corporation estimates that these congestion problems reduced net income
by approximately $353 million, or $1.42 per share.
Results for the quarter included a $40 million, or $.16 per share,
after-tax loss on the planned sale of the company's logistics subsidiary,
Skyway Freight Systems. It also included $13 million, or $.05 per share, in
one-time, after-tax expenses associated with the implementation of the UP/SP
merger. Net income was $229 million, or $.93 per share, in the fourth
quarter of 1996.
Union Pacific Railroad recorded an operating loss of $57 million in the
fourth quarter of 1997, compared to operating income of $470 million for the
same period in 1996. During the quarter, the Railroad focused intense
efforts on alleviating congestion on its system and restoring normal service
levels to its customers. As a result of the service difficulties and the
costs associated with the recovery plan, Railroad revenues were down 11
percent in the quarter, while operating costs increased 12 percent. This led
to an operating ratio of 102.5, compared with 81.6 in the fourth quarter of
1996.
Overnite Transportation completed another strong quarter, reporting net
income of $6 million, compared to a net loss of $1 million in 1996 (before
goodwill of $5 million in both quarters). Continued improvement in service
levels combined with a strong trucking environment to increase revenues by 14
percent. The company also continued its focus on productivity improvement
during the quarter. As a result, Overnite's operating ratio decreased by 5.9
percentage points to 97.4.
Union Pacific Corporation reported net income of $432 million, or $1.74
per share, for the full year 1997. This compares with pro forma 1996 income
of $664 million, or $2.71 per share, and reported 1996 income from continuing
operations of $733 million, or $3.36 per share.
"We are extremely disappointed with our fourth quarter operating and
financial performance," said Dick Davidson, chief executive officer. "We
have let down our customers, our shareholders, and, not least of all, our
employees. We are focused intensively on our Service Recovery Plan and have
been encouraged by the improvement in our service indicators. While our
earnings in the first quarter will not match last year, as we go through the
year our performance should improve. As we complete the recovery and move
forward with our merger implementation, all of us are working hard to regain
the confidence of our customers, our shareholders, and our employees."
Media inquires should be directed to John Bromley at Union Pacific
Railroad, (402) 271-3475.
(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 Union Pacific Railroad's
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 shipper claims,
environmental investigations or proceedings and other types of claims and
litigations.)
