Union Pacific 2009 Annual Report Download - page 3

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3
February 5, 2010
Fellow Shareholders:
My message to you this year is one of pride in what your company has achieved and optimism for what
lies ahead. Through the hard work and dedication of our employees, we not only survived the worst
economic downturn since the Great Depression, but came through it a stronger company well positioned
for future success.
As the year unfolded, we were hoping for the best, but planning for the worst. When the economy
continued to falter, we adapted and responded with a continued focus on safety, service, innovative
approaches to productivity, relentless cost control, new product offerings, and disciplined cash
management. The result was the second highest EPS on record, an all-time low operating ratio, a strong
balance sheet, and best-ever performance levels in safety and service.
Throughout it all, we never lost sight of the important role Union Pacific plays in our Nation’ s economy.
Customers struggling with declining markets sought more economical alternatives to ship their products,
and we were there to provide cost effective, energy efficient, and environmentally sound transportation
solutions. These are the hallmarks of the U.S. rail system, which is the best in the world and a critical
part of our country’ s future economic growth and global competitiveness.
As our Nation’ s political leaders struggled with the significant challenges of restoring economic growth,
the need to improve America’s infrastructure became more and more obvious. Most of these leaders
recognize the need for a healthy freight rail system, and we have worked hard to help them keep this a
national priority.
The next several years should bring tremendous opportunity to our company. Our balance of
international and domestic business gives us an ability to be a part of any economic growth, regardless of
where it starts and how it develops. Business levels will recover, and when they do, we have the
operating leverage to handle that growth.
Perhaps not since the original construction of Union Pacific, connecting this country from east to west,
have we been better positioned to fulfill our role of Building America. Our employees embrace this role
and know that their economic well-being is linked to the company’ s success. Our service now
differentiates us, and our franchise is unparalleled and cannot be replicated. Our core strategy of safety,
service and value is sound and proven. We will continue to invest wisely in support of our strategy, and
to capitalize on opportunities for growth driven by the cost, energy and environmental advantages of rail.
Over the past decade and a half, Union Pacific has on average produced double-digit total annual returns
to our shareholders that have outperformed the S&P 500. Opportunities lie ahead to continue creating
significant value for our shareholders, customers and country. Together, the thousands of men and
women who make this company great stand ready to seize the moment and make it even greater.
Chairman, President and
Chief Executive Officer