Union Pacific posts record quarterly profits
Union Pacific Corp., owners of Union Pacific Railroad, the largest North American railroad, Thursday reported its best ever quarterly results with a net income of $311 million in the first quarter, up 143 percent from $128 million a year earlier.
UP’s first quarter operating income was up 93 percent to $605 million, compared to $313 million in the same quarter 2004. Operating revenue improved 18 percent to $3.71 billion from $3.15 billion.
Revenues in UP’s six business segments in the first quarter were: agricultural up 26 percent to $562.6 million; industrial products up 23 percent to $774.7 million; intermodal up 23 percent to $643.6 million; automotive up 23 percent to $361.3 million; chemicals up 14 percent to $501.5 million; and energy up 5 percent to $699.5 million.
The company said the drivers of the increases were a 4 percent increase in volumes to 2.4 million carloads and increased fuel surcharge revenue and yields.
“Looking ahead we continue to see solid demand, which should support future volume and yield growth,” said Jim Young, UP’s president and chief executive officer.
UP’s share price on the New York Stock Exchange at 11.30 a.m. Eastern Daylight Time was down 0.10 percent to $94.93.