UP profit up 16% on higher rates

   Union Pacific said it had profit of $904 million in the third quarter, 16 percent more than the $778 million earned in the same 2010 period.
   Revenue at the Omaha, Neb.-based railroad was $5.1 billion in the quarter, 16 percent more than $4.4 billion recorded in the third quarter of 2010.
   The company said third quarter business volumes, as measured by total revenue carloads, grew 1 percent versus 2010.
   Four of UP’s six business groups reported volume increases, including strong growth in automotive, industrial products, energy and chemical shipments. Agricultural products and intermodal volumes were down in the quarter compared to 2010. But the company said revenues in all six categories were up.
   The company said intermodal carload volumes were 848,000 in the  quarter, down 6 percent compared to the third quarter of 2011. However, intermodal freight revenues were up 8 percent to $948 million as average revenue rose to $1,119 per container or trailer, 15 percent more than in the third quarter of 2010.
   Jim Young, the railroad’s chairman and chief executive officer, said “while the economic outlook is uncertain, we’re optimistic about the future for Union Pacific. As we have shown in this weaker economy, the diversity of our business continues to deliver record results.”