“We're confident that regardless of the demand environment, we will take the necessary actions to run a more efficient network.”

In context

“is off to a slow start as cold temperatures across our system impacted operations and volume with first quarter volume down 9% year-to-date. I am confident, however, that our strong and improving service product will allow us to capture available demand. We clearly demonstrated that in the fourth quarter as we took advantage of the unexpected but short-term surge in intermodal. More certain than the economy is our expectation to generate pricing dollars in excess of inflation dollars even with ongoing headwinds from certain intermodal contracts. With those pressures, we do not expect price to be accretive to margins in this year. Key for UP in 2024 is our ability to control the controllables by driving a strong safety culture, making ongoing service gains and improving network efficiency. We're confident that regardless of the demand environment, we will take the necessary actions to run a more efficient network. Finally, with capital allocation, there is no change to our long-term strategy. We are investing $3.4 billion back into the railroad as Eric detailed. Next, we prioritize our industry-leading dividend payout and then excess cash will be returned to shareholders through share repurchases. However, given first quarter debt maturities of $1.3 billion, we will not be repurchasing shares in the first quarter. It's always difficult in late January to make predictions for the year ahead, and this year is no different. There are clearly ongoing challenges from a macro and inflationary perspective. What is very encouraging though, as we start out 2024 is our momentum, which you've heard us mention several times today. We demonstrated with our fourth quarter performance, what's possible, and we loo”