Union Pacific Corporation (NYSE:UNP) Q2 2020 Earnings Conference Call - Final Transcript
Jul 23, 2020 • 08:45 am ET
than $2.9 billion as we continue to make good progress on our renewal and productivity investments.
We plan to maintain the dividend, but we are still paused as to share repurchases. We all see the news of COVID cases spiking in various parts of the US and globally. So we plan to stay in a conservative posture for now. Longer term, our guidance of capital expenditures below 15% of revenue, a dividend payout ratio of 40% to 45% of earnings and ultimately a 55% operating ratio remain intact.
Now before I turn it back to Lance, I would like to thank the exceptional employees of Union Pacific who continue to meet the service needs of our customers during this pandemic. They are leading the charge daily towards our collective goal of operating the safest, most efficient and most reliable railroad in North America.
So, with that, I'll turn it back to Lance.
Lance M. Fritz
Thank you, Jennifer. Our first priority has been and will always be safety. We made good progress on safety in the first half of the year and I expect continued improvement in the second half. From a service and efficiency perspective, we took another step forward toward our strategic priority of operational excellence. The experience of the past three to six months has validated why we are transforming our company through the Unified Plan 2020. Our ability to be nimble and flexible in adjusting our resources to a rapid severe decline in volume, while also improving our service product demonstrates the strength of our service model. As we continue to navigate the uncertainty caused by the COVID-19 pandemic, our optimism for the future is unchanged. Union Pacific is well positioned for a future of long-term growth and excellent returns.
With that, let's open up the line for your questions.