UP posts record revenue, 14% profit increase in 2nd quarter
Union Pacific Corp. topped the $4 billion quarterly revenue mark for the first time in the second quarter, helping the railroad achieve a 14 percent increase in net income to $446 million.
Operating income in the period rose 10 percent to $787 million while operating revenue was up 3 percent to $4.05 billion.
Four of Union Pacific’s six business groups posted revenue increases in the second quarter, as the company’s total average revenue per car grew 7 percent. This was offset somewhat by a 3 percent decline in carload volume to 2.4 million which Union Pacific attributed to severe weather in the Midwest, a softer housing market and decreased auto sales.
For the year to date, UP’s net income increased 19 percent to $832 million from $701 million after the six months 2006. Operating income totaled $1.51 billion, up 14 percent compared to $1.32 billion. Operating revenue was up 3 percent to $7.90 billion, from $7.63 billion a year ago.
“Although the economic outlook remains uncertain, our continued focus on yield and productivity improvements should drive better service for our customers and strong financial results for our shareholders in the second half of 2007,” said Jim Young, UP’s president and chief executive officer.