Union Pacific posts record $386 million 1st quarter profit

Union Pacific posts record $386 million 1st quarter profit Union Pacific Corp., owners of Union Pacific Railroad, the largest North American railroad, Thursday reported record first quarter net income of $386 million, up 24 percent from $311 million a year earlier.
   UP’s first quarter operating income gained 19 percent to $719 million, compared to $605 million in the same quarter 2005. Operating revenue improved 4 percent to $3.85 billion from $3.71 billion.
   Carloads declined 2 percent to 2.3 million, which UP attributed to winter storms, a softer housing market and decreased domestic intermodal volume.
   Despite the volume downturn, the company’s average revenue per carload increased 6 percent to $1,565 with revenue gains experienced in four of its six business segments: chemicals, up 9 percent to $544 million; agricultural, up 8 percent to $607 million; energy, up 4 percent to $730 million; and intermodal, up 4 percent to $669 million. The two commodity sectors that declined were: industrial products, down 3 percent to $747 million; and automotive, down 2 percent to $355 million.
   “Despite economic uncertainty, we will continue to enhance shareholder value through our productivity initiatives over the balance of the year,” said Jim Young, UP’s president and chief executive officer. “Our first quarter results were a good start, giving us momentum for the rest of 2007.”