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Rail News: Financials

Union Pacific posts 'best-ever' quarterly results

Today, Union Pacific Railroad announced it registered second-quarter net income of $1 billion — a 27 percent surge compared with second-quarter 2011, helping the Class I achieve what it says are its best-ever quarterly results.

Quarterly operating revenue rose 7 percent year over year to $5.2 billion, and UP posted an all-time quarterly best operating ratio of 67, 4.3 points lower than second-quarter 2011 and 1.2 points better than the previous record set in third-quarter 2010. UP officials attributed the record performance to pricing gains, an improved fuel surcharge recovery and more efficient operations, as well as lower fuel prices.

Volume growth in four of UP’s six business groups — automotive, chemicals, industrial products and intermodal — was offset by declines in shipments of coal and agricultural products. In addition, five of UP’s business lines registered revenue growth. Automotive revenue rose 25 percent; industrial products revenue, 14 percent; chemicals revenue, 13 percent; intermodal revenue, 10 percent; and agricultural revenue, 1 percent. Coal revenue dipped 9 percent.

“Looking ahead to the second half of the year, the global economic outlook has become more uncertain and coal volumes remain a challenge,” said UP President and Chief Executive Officer Jack Koraleski in a prepared statement. “However, we’ll continue to take advantage of the opportunities provided by our diverse franchise to drive record financial results and increase shareholder returns once again this year.”


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