International intermodal volume increased 33% YoY in Q3 2024, contributing significantly to overall volume growth. This was driven by increased U.S. West Coast imports due to freight shifts from the East Coast and Canadian ports.

Business development efforts in domestic intermodal drove volume growth in both the third quarter and year-to-date periods of 2024 compared to 2023.

Revenues from Mexico business increased 7% in Q3 2024 YoY, driven by a 2% volume increase and a 5% increase in average revenue per car. Year-to-date, revenues from Mexico business increased 9% YoY.

The network absorbed increased volume, including a surge in international intermodal business, with improved freight car velocity and locomotive productivity. Workforce productivity also improved.

Workforce productivity improved 12% as total train, engine, and yard (TE&Y) employees were flat year-over-year while the remainder of the workforce declined 8%.

Manifest/automotive service performance index, intermodal service performance index, and train length all improved from the third quarter of 2023.

The company acknowledges potential impacts from public health crises, such as COVID, and geopolitical tensions, such as the Russia-Ukraine and Israel-Hamas wars, on business operations, financial results, and the world economy.

The company notes that macroeconomic and geopolitical conditions may amplify existing risks and uncertainties, impacting future performance and results.

The company is subject to federal, state, and local environmental laws and regulations and has identified 357 sites where they may be liable for remediation costs.

Freight revenue growth was driven by core pricing gains, indicating some pricing power in the market. However, this was partially offset by negative mix.

Volume increases were primarily driven by international intermodal and grain, partially offset by weaker demand for coal and rock shipments.

The company experienced increased demand in specific sectors such as petroleum, plastics, and industrial chemicals, while also seeing increased finished automotive shipments.

Operating expenses decreased 2% YoY due to productivity gains, lower fuel prices, and a 2023 write-off, partially offset by inflation, volume-related costs, and higher depreciation.

Purchased services and materials decreased due to declines in the active locomotive fleet as productivity improved.

Fuel expense decreased due to lower prices, partially offset by a 1% increase in the fuel consumption rate.

The company continues to invest in technology and other areas, with capital investments of $187 million in the nine-month period.

The company is continuing with modernization of its locomotive fleet, which is part of its capital plan.

The company is investing in projects intended to improve operational efficiency, part of its ongoing capital plan.

The company repurchased $738 million worth of shares in Q3 2024 under its existing authorization. As of September 30, 2024, the company had 76.9 million shares remaining under its current repurchase authorization.

The 2024 capital plan of approximately $3.4 billion focuses on supporting growth, hardening infrastructure, replacing older assets, and improving safety and resiliency of the network.

The capital plan includes investments in growth-related projects to drive more carloads to the network, certain ramps to efficiently handle volumes from intermodal customers, and continued modernization of the locomotive fleet.

The company is subject to federal, state, and local environmental laws and regulations and has identified 357 sites where they may be liable for remediation costs.

The company's environmental liability includes future costs for remediation and restoration of sites, as well as ongoing monitoring costs.

The company has a code of conduct and ethics for directors, officers, and employees available on its website.

The company acknowledges potential impacts from public health crises, such as COVID, and geopolitical tensions, such as the Russia-Ukraine and Israel-Hamas wars, on business operations, financial results, and the world economy.

The company notes that macroeconomic and geopolitical conditions may amplify existing risks and uncertainties, impacting future performance and results.

The company is subject to various federal and state regulations, including environmental laws and regulations.