Union Pacific Reports Best-Ever Quarterly Results

Diluted Earnings per Share up 13 Percent Omaha, Neb., July 18, 2013 – Union Pacific Corporation (NYSE: UNP) today reported 2013 second quarter net income of $1.1 billion, or $2.37 per diluted share, compared to $1 billion, or $2.10 per diluted share, in the second quarter 2012. Best-Ever Quarterly Records Diluted earnings per share of $2.37 improved 13 percent. Operating revenues totaled $5.5 billion, up 5 percent. Operating income totaled $1.9 billion, up 9 percent. Operating ratio of 65.7 percent improved 1.3 points. "Union Pacific achieved record financial milestones this quarter," said Jack Koraleski, Union Pacific chief executive officer. "We managed our network efficiently and continued to show the agility of our strong franchise. When combined with solid core pricing gains, we more than offset the slight shortfall in volumes to generate best-ever quarterly earnings and operating ratio performance." Second Quarter Summary Despite lower carloadings, operating revenue increased 5 percent in the second quarter 2013 to $5.5 billion versus $5.2 billion in the second quarter 2012. Second quarter business volumes, as measured by total revenue carloads, decreased 1 percent compared to 2012. Volume declines in agricultural products and intermodal shipments more than offset growth in chemicals and automotive shipments.Volumes for industrial products and coal shipments were flat versus 2012.In addition: Quarterly freight revenue increased 5 percent compared to the second quarter 2012, driven by core pricing gains. Union Pacific's operating ratio of 65.7 percent was a best-ever quarterly record, 1.3 points better than the second quarter 2012 and 0.9 points better than the previous best-ever quarterly record set in the third quarter 2012. The average quarterly diesel fuel price of $3.10 per gallon in the second quarter 2013 was down 3 percent compared to the second quarter 2012. The Customer Satisfaction Index of 93 tied the second quarter 2012 record. Quarterly train speed, as reported to the Association of American Railroads, was 25.7 mph, down 3 percent versus the second quarter 2012. The Company repurchased nearly 3.1 million shares in the second quarter 2013 at an average share price of $151.42 and an aggregate cost of $463 million. Summary of Second Quarter Freight Revenues Automotive up 12 percent Chemicals up 12 percent Coal up 12 percent Industrial Products up 7 percent Intermodal down 1 percent Agricultural down 8 percent 2013 Outlook "As we move into the second half of the year, the economic outlook remains uncertain, but we're hopeful that we'll see some economic improvement in the months ahead," Koraleski said. "Union Pacific is well positioned with our diverse franchise and strong value proposition. We'll continue focusing on reinvestible pricing; attracting new, profitable growth opportunities; and running a safe, efficient, and reliable network that generates greater value for both our customers and shareholders going forward." About Union Pacific Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad links 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2007-2012, Union Pacific invested $18 billion in its network and operations to support America's transportation infrastructure, including a record $3.7 billion in 2012.The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner. Investor contact is Michelle Gerhardt, (402) 544-4227. Media contact is Tom Lange, (402) 544-3560.

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