You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: The team at Union Pacific continued to demonstrate their capability, as we moved increasing volumes while dealing with challenging capacity constraints in some of our important supply chains.
The result was the team delivered all-time record financial results.
Our employees are making good on our strategy to serve, grow and win together.
This compares to $1.1 billion or $1.67 per share in the second quarter of 2020.
While comparisons to the second quarter of last year are skewed by the COVID impact, a comparison to 2019 further demonstrates the impressive results we achieved during the quarter.
Our quarterly operating ratio of 55.1% is an all-time record.
In addition, we set quarterly records for operating income, net income and earnings per share.
These records highlight how the team is running the Union Pacific franchise to deliver results, as we pulled all three profitability levers simultaneously, volume price and productivity.
The second quarter also marked an important milestone in our quest to reduce our carbon footprint, as we achieved a second quarter best fuel consumption rate.
Locomotive fuel efficiency is the critical element to achieving our goal to reduce greenhouse gas emissions.
And we're helping our customers achieve their ESG goals too, as they eliminated 5.7 million metric tons of greenhouse gas emissions in the quarter, by using rail versus truck.
While, our financial results were impressive in the second quarter, our customers felt the impact of intermodal supply chain disruptions and costly rail equipment incidents.
Within the intermodal space, we've taken numerous actions to mitigate the customer impact, and are actively working with all parties in the supply chain.
Even so, it's likely these issues will persist through the end of the year, as the capacity to move boxes from our ramp to the final destination falls short of demand.
Relative to rail equipment incidents, while the number and rate improved their impact on the network was notable.
We're redoubling our efforts to utilize best-in-class technology, training, and root cause analysis to keep our crews, our customers and our communities safe.
To that end, we'll start with Eric and an update on our operations.
While we don't see these events impacting us long-term, there's real work to be done to get past them.
Moving to Slide 4, taking a look at our key performance metrics for the quarter.
It's important to note that year-over-year comparisons are a little skewed.
2020 included a couple historically low volume months at the start of the pandemic.
So as Lance said, we've provided a 2019 comparison to give a little more context to more normal, seasonal volumes.
Freight car velocity improved from 2019 due to the execution of PSR principles that reduced freight car terminal dwell and improved train speeds.
However, we still have work to do to return to running a more fluid network, with the goal to return this metric back to the 220 to 230 miles per day range, we achieved earlier this year.
As you can see, our service reliability as measured by trip planned compliance has improved over the time in both service categories.
However, current quarterly metrics do not meet our expectations or that of our customers.
Disruptions in the international supply chains especially in the intermodal space have impacted our network significantly.
At the expense of our own service metrics, we chose to help reduce port congestion by moving more assets into dock operations.
But that West Coast port congestion has now moved east, and is affecting some of our inland terminals, most notably in Chicago.
We are working proactively with our commercial team and ocean carrier customers to address the congestion, while continuing to sustain shipment volumes, to and from the ports.
To help alleviate the congestion and maintain fluidity, we also temporarily reopened Global III in Chicago for use as an inland storage.
We are also working with our customers to develop additional storage and transportation options.
We will continue to work with all members of the supply chain, our ocean carrier customers, beneficial cargo owners, port operators, chassis providers, and dray carriers to mean the fluidity of international freight flows.
During the first-half, our network has been impacted by weather and costly rail equipment incidents as well.
We have made good progress on reducing the frequency of rail incidents.
However, the location of a couple of the incidents occurring on our East West main corridor, and our sunset route had a notable effect on both intermodal and manifest auto trip planned compliance measures.
Ultimately, we recognize the importance of improving these metrics to support our customers and our long-term growth strategy.
Turning to Slide 5, we continue to make good progress in our efficiency measures, as both locomotive and workforce productivity improved in the quarter.
Improvement in locomotive productivity was the result of running an efficient transportation plan that requires fewer locomotives.
Workforce productivity was an all-time quarterly record, driven by an increase in daily car miles of more than 20%, while workforce levels remained flat.
These improvements were also driven by our continued focus on growing train linked, which has grown by 9% since the second quarter 2020 to just over 9,400 feet.
Increasing and more consistent volumes provide the team with more optionality to adjust transportation plans.
We will continue to focus on train length to run a more efficient and reliable railroad for our customers.
Turning to Slide 6, one driver of the continued increase in train length is our siding extension program.
Through the first-half of the year, we've completed seven sidings and began construction or the bidding process on more than 20 additional sidings.
Through growing train size, other productivity initiatives and technology, our fuel consumption rate was a second quarter record, improving 3% compared to last year.
The operating department understands the important role we play in achieving our long-term greenhouse gas emission goals.
Wrapping up on Slide 7, the entire team is focused on performing our work safer every day.
Year-to-date, our safety results have been mixed.
Real equipment incidents have decreased, but personal injuries increased.
To address personal injuries, we are maturing our peer-to-peer safety programs, which is a continuation and next level of our Courage-to-Care program.
Recently, our network has been impacted by wildfires in Northern California.
Our Dry Canyon Bridge north of Redding, California sustained significant structural damage.
The team is working around the clock to repair the bridge.
Current projections have a reopening in late August.
We are actively rerouting traffic in that area, which requires additional crew and locomotive resources, as well as adding transit time to those customer shipments.
Ultimately, I have the utmost confidence that we will guide our network through these transitory challenges, and return our service product to the level our customers expect and deserve.
The team did an excellent job during the quarter and how efficiently we added volume to our network.
PSR remains our guiding principle and the improvements you've seen, and our productivity and operating efficiency speaks to that commitment.
Our ability to be far more volume variable with our cost structure is a testament to our employees who execute the plan every day.
Our second quarter volume was up 22% from a year ago, as all of our major markets improved from the economic shutdown that we saw from the onset of the pandemic.
Freight revenue was up 29%, due to the volume increase coupled with a higher fuel surcharge and core pricing gains.
We clearly have easy comp this quarter versus last year.
In order to provide a little more color into the current business, I will also share our sequential comparison to the first quarter, as I walk through each of the business groups.
So, let's get started with our bulk commodity.
Revenue for the quarter was up 19% compared to last year, driven by a 13% increase in volume, and a 5% increase in average revenue per car, reflecting core pricing gains and higher fuel surcharge revenue.
Coal and renewable carloads grew 6% year-over-year and 14% from the first quarter, due to higher natural gas prices supporting domestic coal demand, Winter Storm Uri in the first quarter, as well as increased coal exports.
Grain and grain products were up 22% year-over-year due to the strength in both domestic and export grain.
Ethanol shipments also continue to improve as production recovers from COVID-related shutdown.
Fertilizer carloads were up 2% year-over-year and 23% from the first quarter, due to strong agricultural demand and seasonality of fertilizer applications.
And finally, food and refrigerated volume was up 17% year-over-year and 7% from the first quarter, driven primarily by higher consumer demand, as the economy recovers from COVID, along with increased growth from truck penetration.
Moving on to industrial, industrial revenue improved 24% for the quarter, driven by a 15% increase in volume, coupled with an 8% increase in average revenue per car from a positive mix of traffic, core pricing gains and a higher fuel surcharge.
Energy and specialized shipments were up 20% year-over-year, but we're down 1% compared to the first quarter, as strength in specialized shipments were offset by fewer crude oil shipments, and seasonal LPG demand.
Forest products continue to be a bright spot, as second quarter volumes grew 28% year-over-year and 7% over the first quarter.
Lumber drove this increase from strong housing start, repairing remodels, along with further penetration from product moving over the road.
Industrial chemicals and plastics shipments were up 11% for both year-over-year and the first quarter comparison.
The sequential growth was driven by the recovery of the Gulf Coast production rates from the February storm and improved demand.
Metals and minerals volumes was up 12% year-over-year and 25% from the first quarter, driven by increased rock shipments and stronger steel demand, as the industrial sectors recover.
Turning now to Premium, revenue for the quarter was up 50% on a 31% increase in volume.
Average revenue per car increased by 14% from higher fuel surcharge revenue, positive mix of traffic and core pricing gains.
Automotive volume was up 119% year-over-year, but down 4% compared to the first quarter, driven by shortages for semiconductor-related parts.
Intermodal volume increased by 21% year-over-year, and 10% from the first quarter.
Domestic intermodal improved from continuous strength in retail sales and recent business wins, parcel in particular, benefited from the ongoing strength in e-commerce.
International intermodal saw continued strength in containerize import, despite congestion in the overall global supply chain.
Now, looking ahead to the back-half of 2021.
Starting out with our bulk commodities, we expect coal to remain stable for the remainder of the year, based on the current natural gas futures as well as export demand.
Our food and refrigerated shipments should continue to be strong, as the nation recovers from COVID coupled with truck penetration wins.
We're also optimistic with our grain products business, as ethanol shipments will improve from increased consumer demand, and our focus in growing the renewable diesel market.
Lastly, while we see positive signs for the upcoming grain harvest and strengthen export demand, we expect tight supply in the third quarter, as well as top year-over-year comparisons in the back-half of the year.
As we look ahead to our industrial commodities, the year-over-year comps for our energy market are favorable.
However, there is still uncertainty with crew plans supporting crew by warehouse shipments.
We continue to be encouraged by the strength and the industrial production forecast for the rest of 2021, which will positively impact many of our markets.
In addition, forest product volume will remain strong for us in the second-half of the year.
And lastly for premium, automotive sales are forecasted to increase from 14 million units in 2020 to almost 17 million in 2021.
However, we are keeping a watchful eye on the supply chain issues for parts related to the semiconductor chip.
Now switching to intermodal, on the international side we expect demand to remain strong through the rest of the year.
The entire supply chain continues to be constrained by most notably to haul away our containers from our inland ramp.
But I've been pleased with the collaboration between our commercial and operating teams, as we work together to create solutions for our international customers to improve service and network fluidity.
With regard to domestic intermodal, limited truck capacity will encourage conversion from over the road to rail, tampered by constraint on chassis supply.
Retail inventories remained historically low, and restocking of inventory along with continued strength in the sales should drive intermodal volumes higher for the remainder of this year.
Overall, I'm encouraged by the improving economic outlook, but more importantly, by our commercial teams' intensity and ability to win in the marketplace.
As you heard from Lance, Union Pacific recorded record second quarter financials with earnings per share of $2.72 and an operating ratio of 55.1%.
Rise in fuel prices throughout the quarter and the two month lag on our fuel surcharge programs, negatively impacted our quarterly ratio by 210 basis points, and earnings per share by $0.04.
Below the line, our previously announced real estate gain and a lower effective tax rate associated with reduced corporate tax rates in three states added $0.13 to earnings per share.
Partially offsetting that good news in 2021 is a real estate gain of $0.08 recorded in last year second quarter.
Setting aside the impact of one-time items and fuel, UP's core operational performance drove operating ratio improvement of 800 basis points, and added $1.04 to earnings per share.
These results are a clear demonstration of how we are positioned to efficiently leverage volume growth to the bottom-line.
Looking now at our second quarter income statement on Slide 15, where we're showing a comparison of this quarter's results to second quarter 2020, as well as 2019.
This is to provide additional context to our results by comparing periods with more normal seasonal volume levels.
For perspective, seven day car loadings in the second quarter of 2019 were almost 166,000, versus only 133,000 in 2020, and then rebounding this year to 163,000.
So, not quite back to pre-pandemic levels.
For second quarter 2021, the combination of operating revenue up 30% and operating expense only up 17%, illustrates our efficient handling of volume growth to produce record quarterly operating income of $2.5 billion.
Net income of $1.8 billion and earnings per share also were quarterly records.
Looking more closely at second quarter revenue, Slide 16 provides a breakdown of our freight revenue, both on a year-over-year basis and sequentially versus the first quarter.
Freight revenue totaled $5.1 billion in the second quarter, up 29% compared to 2020, and up 10% compared to the first quarter.
Looking first at the year-over-year analysis, volume was the largest driver up 22% against the pandemic impacted second quarter 2020 volumes.
Fuel surcharges increased freight revenue by 425 basis points compared to last year, as our fuel surcharge programs adjusted to rise in fuel prices.
And as we experienced a strong demand environment, our pricing actions continue to yield dollars in excess of inflation.
On a year-over-year basis, those gains were further supplemented by a slightly positive business mix, driving in total 300 basis points of improvement.
Looking at freight revenue sequentially, volume was again the largest driver of growth, up 875 basis points against weather impacted first quarter volumes.
Sequentially, fuel surcharge increased freight revenue 275 basis points.
Business mix was actually negative sequentially, more than offsetting positive pricing gains and creating a 100 basis point headwind.
Now, let's move on to Slide 17, which provides a summary of our second quarter operating expenses.
With volumes up 22% in the quarter, our benchmark of success is growing expenses at a slower rate.
And as you have seen through our results, we did an excellent job of being more than volume variable with our cost structure.
Looking at the individual lines, compensation and benefits expenses up 13% versus 2020.
Second quarter workforce levels were flat compared to last year, generating very strong workforce productivity, as Eric described.
Specifically, our train and engine workforce continues to be more than volume variable up only 10%, while management, engineering and mechanical workforces together decreased 5%.
Offsetting some of this productivity was an elevated cost per employee, up 13% as we experienced increased overtime, and more recently, higher recrew [Phonetic] costs associated with some of our network outages.
Other drivers of the increase were wage inflation, the negative comparison against last year's management actions in response to the pandemic, as well as higher year-over-year incentive compensation.
Quarterly fuel expense increased over 100% driven by a 71% increase in fuel prices, and the 22% increase in volumes.
Offsetting some of this expense was a 3% improvement in our fuel consumption rate, driven by our energy management initiative and a more fuel efficient business mix.
Purchase services and materials expense increased 8%, primarily due to higher volume related subsidiary drayage costs, as well as other volume related expenses, such as transportation and lodging for our train crews.
These increases were partially offset by around $35 million of favorable one-time items.
Equipment and other rents actually decreased 5% or $11 million, driven by decreased rent expense on stored equipment and higher TTX equity income, partially offset by volume increases.
The other expense line increased 21% or $49 million this quarter, driven by last year's $25 million insurance reimbursement, higher casualty expenses and higher state and local taxes.
Lastly, as previously announced in an 8-K during the quarter, we expect our annual effective tax rate to be closer to 23% for the year.
Looking now at our efficiency results on Slide 18, despite some of the operational challenges that Eric discussed, we continue to generate solid productivity.
Second quarter productivity totaled $130 million, bringing our year-to-date total to $235 million.
Productivity results continue to be led by train length improvements and locomotive productivity.
As we stated at our Investor Day, a better long-term indicator of our efficiency is incremental margins.
So looking at this quarter, we achieved a very strong incremental margins of 78%, demonstrating the positive impact PSR is having on our operating models.
Turning to Slide 19, cash from operations in the first-half of 2021 decreased slightly to $4.2 billion from $4.4 billion in 2020, a 4% decline.
This decrease was the result of deferred tax payments last year.
Our cash flow conversion rate was a strong 96%, and free cash flow increased in the first-half up $142 million or 9%, highlighting our ongoing capital discipline.
Supported by our strong cash generation and cash balances, we've returned $5.4 billion to shareholders year-to-date, as we increased our industry-leading dividend by 10% in May, and repurchased 19 million shares totaling $4.1 billion.
This includes the initial delivery of a $2 billion accelerated share repurchase program established during the quarter, and funded by new debt issued in mid-May.
We finished the second quarter with a comparable adjusted debt to EBITDA ratio of 2.8 times, on par with the first quarter.
Wrapping up on Slide 20, we are optimistic about what's ahead in the back-half of 2021.
From a volume standpoint, we are increasing our growth outlook for the full year to around 7%, which includes just over a one point headwind from ongoing energy market challenges.
We also see tough comparisons in both intermodal and grain, as well as continued impacts from the semiconductor shortage.
And as you heard Kenny mentioned, supply chain challenges in the intermodal space are likely to slow asset turns and impact loading.
On the flip side, we see growing confidence in the industrial sector, and the team is successfully executing on our plan to grow and win with customers.
Looking at operating ratio, we're dropping the low end of our initial range and now expect to achieve roughly 200 basis points of improvement, or an operating ratio closer to 56.5% for full year 2021.
With that strengthening outlook, cash generation is growing as is our plan for share repurchases, which we would target at approximately $7 billion or $1 billion more than we had originally planned.
Behind each of these numbers is a member of the UP team, who works safely and efficiently to attract new business and serve our customers.
And with UP's new employee stock purchase plan, the entire team has more opportunity to benefit from the company's success.
As I mentioned at the start, we must improve our safety performance, it's foundational to everything we do at Union Pacific.
The pace of our progress has to accelerate.
As Eric stated, we're dedicated to improving our service products to the level our customers expect and demand.
All of our long-term goals are predicated on a safe, reliable and consistent service product.
As you heard from Kenny, we're winning with customers and growing our business.
You're seeing our customer focus and obsession in action.
We've got fantastic momentum and we're excited about the increasing opportunities that we are creating and uncovering.
Given the workforce issues faced across various parts of the supply chain outside of UP, we will likely be working to overcome that congestion for the remainder of the year.
But our second quarter achievements set the table for continued strong results in the second-half of the year.
These results also provide a solid start toward the long-term targets we set for the next three years that we laid out at our Investor Day in early May.
The future is very bright for Union Pacific.
We're in a fantastic position to deliver value to all of our stakeholders, as we win together.

user
q2 earnings per share $2.72.
qtrly business volumes, as measured by total revenue carloads, increased 22%.
qtrly union pacific's 55.1% operating ratio improved 590 basis points.

assistant