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Union Pacific CEO on Earnings, 2012 Outlook

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    Union Pacific CEO Jim Young says his customers are more bullish about business in 2012.

  • Duration 4:39
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The economy looks good certainly from the perspective of railroad giant Union Pacific take a look at the shares today they -- up.

After the company came out with a profit increase of 24%.

The most recent quarter from a year ago the stock is.

Nearly 12%.

Over the last year look at that gain almost 4% today to explain it more joining us now from Omaha -- beyond.

Chairman and CEO I've Union -- first and foremost Jim great to see you and happy 150 birthday which I know -- you're celebrating this year.

You do -- have put your hands on.

Almost every aspect of our economy big picture.

Does it look good and how much is it improving.

But day getting pick again good good morning in I know you Roger went to say you know I've -- quite a bit about where roads -- -- -- time -- here.

We are good barometer of the economy.

We had a good -- -- the ended.

Last year fourth quarter.

One of the things that I'm saying and talking with a lot of our customers is there -- little more how bullish coming into the new year.

What really benefited.

Ceiling and a fourth quarter results is the diversity of our franchise and debt.

That's pretty unusual that all six of our business groups would be we have four up into down assured.

Right now you know -- and ended 2012 here I would does say there are a little more optimistic in debt.

You know -- -- plays out for the year what I told our shareholders should call.

Was we expect.

You know growth this year -- the positive side but still a kind of a slow growth.

Model what part of your your profit increase again part of that led price increases how easily -- those price increases sticking with your customers.

Particularly say legacy customers that -- now resigning.

Well day there's two pieces of it you have the old legacy contracts that now finally we're getting good chance to price to market.

And and many cases these are contracts that were signed 8910 years ago.

Did reflect what the demand is today or feel the second piece though is we're providing great service and value and customers are willing.

To pay for good consistent service in terms of some price.

What about hiring that's what that every American cares about -- whether they get their goods.

Via rail are not what are -- hiring plans and -- you actually are in are you do you think that you're gonna be on the verge of having to increase.

Those numbers in the -- -- -- -- and actually it if you back before the recession we peaked at about 52000 employees and our company.

At the bottom of the recession we were at 41000 so we -- up -- ten to 121000 jobs.

We ended last year at about 45000 that was up 3%.

To the prior year.

What we said this morning in the call is assuming the economy.

You know we see slow growth.

That my outlook is by the this time next year we should see another increase.

We're -- lose about 4000 people this year through retirements you know that the baby boomers are -- -- and so we're gonna hire for replacement.

And then we will hire two.

-- in terms of the book when we look at smaller volumes so again I think will be up again this time next year.

You sound really positive across the board Jim and I know you love what you do but what keeps you up at night.

Pick one thing that you do worry about consistently and -- can be anything.

Well -- you know we just came off the if you Asia no we as we we're celebrating a 150 anniversary here this year in July want for company just came off but I really one of the greater shares in the history of the company.

I am concern about what's happening.

On our economy.

Regulations I see it every day in our business in terms of pushing additional cost into our network that we end up having to push to customers.

It is a real challenge there it's very real when you talk about.

Difficulty.

In doing business and and regulation costs so I you know I don't lose a lot of sleep 'cause we're doing very well.

But I am concerned about the amount of oversight we have and regulations we have our our business along.

Gym it was great to talk to you as always I have efficacy and person next time but.

I'll take you by satellite any day of the week Jim -- these CEO of Union Pacific and again happy.

Happy birthday.

-- -- They think -- today all right you know -- --

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