Union Pacific’s profit flat in 4th quarter, up 16% for 2007

Union Pacific’s profit flat in 4th quarter, up 16% for 2007 Union Pacific Corp., owners of Union Pacific Railroad, today reported fourth quarter net income of $491 million, up 1 percent from $485 million in the fourth quarter 2006.
   UP's quarterly operating income was up 7 percent to $864 million from $810 million in the prior year quarter. Operating revenue in the last three months of 2007 improved 6 percent to $4.2 billion.
   “The drivers of our quarterly performance were revenue growth on flat volume and improved operational efficiency,” said Jim Young, chairman and chief executive officer. “Despite record-high diesel fuel prices and winter weather challenges, we turned in a solid fourth quarter performance to post another record year for our shareholders and improved service for our customers.”
   For the whole of 2007, UP's net income increased 16 percent to $1.9 billion while operating income improved 17 percent to $3.4 billion. The company’s annual operating revenue gained 5 percent to $16.3 billion.
   Looking ahead, Young said: 'We see both challenges and opportunities ahead in 2008. Although external factors such as the U.S. economy and high fuel prices will challenge us ' overall, we remain optimistic that our superior franchise will enable us to overcome economic weakness and post another record year in 2008.'