UP REPORTS RECORD SECOND-QUARTER EARNINGS

UP REPORTS RECORD SECOND-QUARTER EARNINGS    Union Pacific, the largest railroad in North America, reported record net income of $304 million for its second quarter, up 25 percent over the year-earlier period.
   Operating income rose 22 percent to $583 million, while revenue improved 5 percent to $3.15 billion. Operating ratio improved 3.0 percentage points to a second-quarter record 79.3 percent.
   Five of UP's six commodity groups reported improved revenues for the quarter. Intermodal was up 11 percent; automotive up 8 percent; chemicals, 4 percent; agriculture, 3 percent; and industrial products 2 percent.
   'This was an outstanding quarter for Union Pacific,' said Dick Davidson, chairman and chief executive officer. 'Clearly, we have momentum in all aspects of our business. The railroad leveraged increased revenue, employee productivity gains and lower fuel prices into records for operating income, net income and operating ratio.'
   For the first six months of 2002, UP reported net income of $526 million, up 24 percent.    Operating income improved 18 percent to 1.10 billion on revenue of $6.12 billion, up 3 percent.
   Omaha, Neb.-based UP's principal operating company, Union Pacific Railroad operates over a rail system covering 23 states. UP also owns less-than-truckload carriers Overnite Transportation and Motor Cargo.