Union Pacific: FY23 outlook pressured by challenging demand, cost environment

Consumer-related volumes likely drive full year volume expectations below Industrial Production (Current forecast: +0.1%); Pricing dollars in excess of inflation dollars; Forecasting $50 to $70 million in labor expense from new agreements in second half of 2023. 2023 Capital Allocation: Capital plan of $3.6 billion; Maintain dividend of $1.30/quarter; No further 2023 share repurchases planned.