UP’s net income down 22%

UP’s net income down 22%    Union Pacific Corp. reported Thursday a 22 percent decline in first quarter net income to $128 million, due to the impacts of West Coast storms and more expensive fuel costs.
   UP said the storms negatively impacted its net earnings by about $34 million during the first three months of the year.
   Operating income in the first quarter of 2005 was $313 million compared to $314 million for the same period last year. UP reported record first quarter revenues of $3 billion, up 8 percent compared to $2.8 billion for the first quarter 2004.
   UP said the improved revenues were due to a 1 percent increase in volumes as well as higher fuel surcharge recoveries and improved yields. UP noted strong demand, particularly in the energy (up 14 percent) and industrial products (up 12 percent) markets. UP’s revenue from the automotive market was down 1 percent.
   “We see solid demand continuing, with the primary exception being automotive, which has been affected by softer auto production,” said Dick Davidson, chairman and chief executive officer.
   UP paid an average quarterly fuel price of $1.45 per gallon compared to $1.02 per gallon paid in the same period a year ago.