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 Union Pacific Railroad


Rail News: Union Pacific Railroad

UP lowers operating ratio, raises income in the second quarter


Union Pacific Corp. rebounded from a disappointing first quarter by posting strong second-quarter financial results. Today, the Class I reported record second-quarter operating revenue of $3.3 billion, a 10 percent increase compared with second-quarter 2004. Quarterly net income of $233 million rose 47 percent and operating income of $359 million increased 30 percent — the railroad’s first year-over-year operating income growth in six quarters.

In addition, average terminal dwell time fell 11 percent to 27.4 hours and cars on line dropped 2 percent to 318,434 cars during the quarter. And UP’s quarterly operating ratio of 86.0 improved 2.1 points compared with second-quarter 2004. The lone bad news: Quarterly operating expenses rose 8 percent to $2.87 billion.

During the year’s first half, operating revenue rose 10 percent to $6.5 billion, operating income increased 16 percent to $781 million, net income went up 12 percent to $361 million and UP’s operating ratio improved 0.6 points to 88.0 compared with first-half 2004. Operating expenses rose 9 percent to $5.7 billion.

“Today, our company has more business demand than we are able to fulfill — a situation that I haven't seen during my 45-year career,” said UP Chairman and Chief Executive Officer Dick Davidson in a prepared statement. “We are encouraged by the changes we see in our day-to-day operations.”

Contact Progressive Railroading editorial staff.

More News from 7/21/2005