UP reports $1 billion quarterly profit

   Union Pacific Corp. said it had a profit of $1 billion in the third quarter, compared to $904 million in the third quarter 2011.
   Operating revenue for the Class I railroad was $5.3 billion in the third quarter, 5 percent more than $5.1 billion in the third quarter 2011.
   “Despite a 12 percent decline in coal volumes and significantly weaker steel and scrap metal markets, we generated best-ever financial results across the board,” said Jack Koraleski, Union Pacific’s chief executive officer. “We achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets.”
   The railroad said third quarter business volumes, as measured by total revenue carloads, were down slightly compared to 2011. Volume growth in chemicals, automotive and intermodal offset declines in shipments of coal, agricultural products and industrial products.
   Quarterly freight revenue increased 4 percent compared to the third quarter 2011, mainly driven by core pricing gains of 5 percent. Third quarter freight revenue by market segment was as follows:

• Chemicals, $841 million  up 17 percent (from the same 2011 period).
• Automotive, $436 million, up 15 percent.
• Intermodal, $1.02 billion, up 8 percent.
• Industrial Products, $879 million, up 2 percent.
• Agricultural, $783, down 4 percent.
• Coal, $1.06 billion, down 5 percent.

   Koraleski said “political and financial challenges in the U.S. and abroad have increased economic uncertainty,” and added the company will adapt to changing market conditions.
   Average revenue per intermodal container or trailer was $1,192, up 7 percent from the third quarter of 2011. – Chris Dupin