Union Pacific reports higher profit
Union Pacific Corp., in its second quarter results reported net profit of $785 million, 10 percent more than the $711 earned in same 2010 period.
UP said revenue for the period ending June 30 was $4.6 billion, 16 percent more than the $4 billion recorded in the second quarter 2010.
Jim Young, chairman and chief executive officer, said agricultural products and chemicals volumes were particularly strong, each up 11 percent, and energy products volume such as coal, automotive and industrial products also improved.
But intermodal volume was down 1 percent to 819,000 carloads during the quarter, compared 827,000 in the second quarter 2010.
The company said it had freight revenue growth in all six of those commodity groups, including intermodal, which it attributed to increased fuel cost recoveries, core pricing gains, and volume growth.
“Looking to the second half of the year, we expect stronger performance despite some economic uncertainties and ongoing flood challenges,” Young said. UP said flood-related issues increased operating expenses by $14 million.
Average revenue per intermodal car rose 14 percent to $1,108 compared to $974 in the second quarter 2010. That boosted UP’s freight revenue from intermodal to $909 million for the 2011 quarter compared to $804 million in the second quarter of 2010.