Union Pacific Corp. said it had a profit of $1 billion in the third quarter, compared to $904
million in the third quarter 2011.
revenue for the Class I railroad was $5.3 billion in the third quarter, 5 percent more than $5.1 billion in the third quarter 2011.
"Despite a 12 percent decline in coal volumes and significantly
weaker steel and scrap metal markets, we generated best-ever financial
results across the board," said Jack Koraleski, Union Pacific's chief
executive officer. "We achieved solid core pricing gains, managed our
network efficiently and delivered on the benefits of our diverse
franchise with growth in other markets."
The railroad said third quarter business volumes, as measured by total revenue
carloads, were down slightly compared to 2011. Volume growth in
chemicals, automotive and intermodal offset declines in shipments of
coal, agricultural products and industrial products.
Quarterly freight revenue increased 4 percent compared to the third
quarter 2011, mainly driven by core pricing gains of 5 percent. Third quarter freight revenue by market segment was as follows:
- Chemicals, $841 million up 17 percent (from the same 2011 period).
- Automotive, $436 million, up 15 percent.
- Intermodal, $1.02 billion, up 8 percent.
- Industrial Products, $879 million, up 2 percent.
- Agricultural, $783, down 4 percent.
- Coal, $1.06 billion, down 5 percent.
Koraleski said "political and
financial challenges in the U.S. and abroad have increased economic
uncertainty," and added the company will adapt to changing market conditions.
Average revenue per intermodal container or trailer was $1,192, up 7 percent from the third quarter of 2011. - Chris Dupin