The nation's largest railroad saw its net income fall to $128 million, or 48 cents a share, compared with $165 million or 63 cents earned in the year-ago quarter.The latest quarter's profit topped by a penny the average analysts' estimate compiled by Thomson First Call.Shares of Union Pacific rose $1.98 Thursday to $65.31.Operating revenue rose 9% to $3.15 billion, also beating the First Call forecast of $3.13 billion. Of Union Pacific's 8.2% freight revenue growth, more than half, or 4.9% came from fuel surcharges. The railroad should benefit from continuing fuel surcharges in 2005 and 2006 as its contracts continue to roll over, according to Larkin. The rail operator's average quarterly fuel price was $1.45 per gallon, compared with $1.02 per gallon paid a year ago.Revenue for shipping coal and other energy products, its biggest profit maker, grew 14% to $667.8 million in the quarter. Industrial products shipments rose 12% to $630.2 million. Sales of intermodal shipments, or freight trailers carried by a combination of rail and truck or barge, grew 3% to $523.9 million. Automotive shipment revenue fell by 5%. Best regards, Swafford
Thanks for the information Frank, by the looks of those figures rail is still enjoying growth. The only downside is the rise in fuel costs eating into profits.
I have not yet heard what UP might, or may already be doing. But believe me, they'll not allow fuel costs to touch profits. BNSF has a $160/car fuel surcharge in place, or ready to go. Interesting thing will be to se how long they hold this. As fuel prices have recently seen a slight decrease...... Boxcab E50
