Union Pacific posts 10pc third quarter profit increase to US$1 billion

THE Union Pacific Railroad (UP) posted a 10 per cent third quarter net profit increase to US$1 billion year on year drawn on $5.3 billion in revenue, a rise of five per cent.

The robust third quarter results were supported by solid pricing gains and revenue growth in chemicals (17 per cent), automotive (15 per cent) and intermodal (eight per cent) to offset a five per cent decline in coal freight revenues and weakening results in steel and scrap metal.

The Omaha-based railway, the biggest freight carrier in the country, also posted a quarterly freight revenue increase of four per cent compared to same third quarter 2011 driven by core pricing gains of five per cent. Its average revenue per intermodal container or trailer was $1,192, an increase of seven per cent same period 2011.

Despite economic uncertainty, "we achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets," said UP chief executive Jack Koraleski.