UP profit skyrockets 83%

UP profit skyrockets 83%    Union Pacific Corp., parent company of Union Pacific Railroad, said Thursday that revenue growth in all six of its business segments resulted in double-digit increases for third quarter net income, operating income and operating revenue.
   UP’s third quarter net income soared 83 percent to $369 million, including a $118 million after-tax non-cash income tax expense reduction. Excluding the tax item, UP’s net income would have improved 24 percent to $251 million. UP’s third quarter 2004 net income was $202 million.
   Operating income was up 15 percent at $481 million from $418 million. Operating revenue increased 13 percent to $3.46 billion from $3.07 billion in the same quarter 2004.
   “With the exception of autos, demand across the board continues to be remarkably strong,” said Dick Davidson, UP’s chairman and chief executive officer.
   Revenues in UP’s six business segments in the third quarter were: agricultural up 27 percent to $501.7 million; industrial products up 16 percent to $299.3 million; intermodal up 13 percent to $651.7 million; chemicals up 9 percent to $474.0 million; automotive up 4 percent to $299.3 million; and energy up 4 percent to $650.9 million.
   UP said its carloads increased 1 percent during the quarter to a record 2.4 million loads.
   For the year-to-date, UP’s net income increased 39 percent to $730 million, from $525 million after three quarters in 2004. Operating income was $1.26 billion, up 16 percent compared to $1.09 billion after the same period last year. Operating revenue was up 11 percent to $9.95 billion from $8.99 billion.