Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home Financials


Rail News: Financials

UP to record fourth-quarter operating charge due to asbestos-claim liability


Yesterday, Union Pacific Corp. announced plans to record a non-cash, after-tax operating charge of $153.6 million in the fourth quarter because of increased liability for asbestos-related claims.

UP previously lacked "sufficient comparable history" to assess unasserted asbestos-related claims and recorded a liability for such claims only when they were asserted, according to a prepared statement. UP officials believe they now can better estimate the road's liability because the company hired a consulting firm to help determine the number and value of unasserted claims.

Officials expect ongoing asbestos-related expenses to decrease beginning next year, slightly increasing after-tax annual earnings about $8 million. For the fourth quarter, officials project earnings to range between 82 cents and 87 cents per diluted share and commodity revenue to increase about 8 percent compared with a previous 5 percent estimate.

Contact Progressive Railroading editorial staff.

More News from 12/22/2004