Thursday, October 18, 2012

UP 3Q earnings mark “best ever” quarter

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Union Pacific early Thursday reported third-quarter earnings of $1 billion, or $2.19 per diluted share, up from $904 million, or $1.85 per diluted share, in the comparable period in 2011 and in line with Wall Street consensus estimates of $2.19 per share.

"Despite a 12% decline in coal volumes and significantly weaker steel and scrap metal markets, we generated best-ever financial results across the board," said Union Pacific CEO Jack Koraleski. "We achieved solid core pricing gains, managed our network efficiently, and delivered on the benefits of our diverse franchise with growth in other markets."

Operating revenue was $5.3 billion, up 5%, while UP's operating ratio of 66.6% improved 2.5 points over the third quarter of 2011, and an all-time quarterly best, the Class I railroad said, improving on the previous record set in the second quarter by 0.4 points.

"As we look out over the next several months, the political and financial challenges in the U.S. and abroad have increased economic uncertainty," Koraleski said. "In this environment, we'll continue to be agile as we were in the third quarter. We'll adapt to changing market conditions and leverage our diverse franchise to provide excellent customer service and generate strong returns for our shareholders."