Jim Young, Union Pacific chairman and chief executive officer, said Thursday that “strong volume growth, pricing gains, and operating efficiency” combined to produce 2010 third-quarter net income of $778 million, or $1.56 per diluted share, beating Wall Street estimates, compared with $514 million, or $1.01 per diluted share, in third-quarter 2009. Operating revenue grew 20% to $4.4 billion versus $3.7 billion in the third quarter of 2009.
Union Pacific’s operating ratio was a best-ever 68.2%, 5.6 points better than third-quarter 2009 and 1.2 points better than the previous record.
Other quarterly records were set as diluted earnings per share rose 54% to $1.56 and operating income increased 46% to $1.4 billion.
Third-quarter revenue carloads grew 14% versus 2009 levels as all six business groups reported volume growth. Operating revenue increased 20% to $4.4 billion versus $3.7 billion in third-quarter 2009.
“As the economy continues to recover, we stand ready tosafely and reliably haul more freight,” said Young (pictured at right). “Longer term, we believe Union Pacific is positioned to provide strong value for our customers and shareholders, as the long-standing need for freight rail transportation in our nation provides us with a stable foundation as well as a platform for future growth.”
Both U.S. carload freight volume and U.S. intermodal traffic continued to gain over 2009 levels in the week ending October 16 over the comparable week in 2009, the Association of American Railroads said Thursday.
U.S. carload freight volume rose 10.1%, with 14 of the 19 carload commodity groups registering gains. Metallic ores again notched the most significant gain, up 183.2%. Other commodities gaining included stone, clay, and glass products, up 32%, crushed stone, sand, and gravel, up 30.9%, and grain, up 20.1%. Non-metallic minerals led the decliners, down 25.9%.
U.S. intermodal traffic advanced 15.1% for the week, with container volume up 15.8% and trailer volume up 11.1%.
Canadian freight carload traffic rose 12.3% from last year, while Canadian intermodal rose 16%. Mexican carload freight volume gained 16.8% from the same week last year, while intermodal rose 14.2%.
Combined North American rail volume for the first 41 weeks of 2010 on 13 reporting U.S., Canadian, and Mexican railroads was up 9.8% over the comparable 2009 period, while intermodal was up 15.1%.
Class I railroad employment reached 154,094 in
mid-September, up3.12% from September 2009 and 0.91% from August 2010. Train crew employment (transportation,
train and engine) continued to set the pace, rising to 61,444, an increase of 8.57% from last year and
1.79% from the prior month.