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CLAIM #59410 · Union Pacific Corporation (UNP) · 2023Q2 earnings call · Jul 26, 2023 · due Dec 31, 2023

So we are not -- with the addition of the labor expenses, volumes moving away from us and then obviously, some fuel headwinds relative to OR in the back half of the year, we don't expect year-over-year improvement.

Jennifer Hamann · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

reements. Obviously, Jen ran through some of the cost side from the pay increase last year to what you're now adding on after the main contracts. Maybe -- can you take a minute, walk us through some of the benefits that you see? And I presume these are all Union Pacific add-ons. Maybe differentiate what is UP add-on versus the industry. And then just thoughts on your outlook. I think you removed the operating ratio from your target. Is there a thought on the scale that you want to put together on costs? Or are we just leaving that off all together? Jennifer Hamann : Yes. So I'll start off, Ken. So when we did our 8-K in June, we took the operating ratio improvement off the table for the year, and that hasn't changed. Certainly, you heard us talk about some of the headwinds that we have. So we are not -- with the addition of the labor expenses, volumes moving away from us and then obviously, some fuel headwinds relative to OR in the back half of the year, we don't expect year-over-year improvement. Our task, and I kind of touched on this a little bit with the question from Amit, is to get better from where we sit today. And I'm not going to forecast what our OR is going to be in the back half of the year, but we're going to work really hard to improve each and every day. And that's both in terms of being more productive with that cost structure as well as going out and selling in the marketplace and doing all we can to drive profitability on that side. I don't know, Eric, you want to... Eric Gehringer : Yes. And on the agreement side, so if we start with sick days, the opportunity that Lance mentioned obviously reinforce as we see the opportunity to improve the attractiveness of our jobs. And as a result of that, that can have a positive impact on how we do our hiring. If you go

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SEC filings for UNP · Claim quote is verbatim from the 2023Q2 earnings call.