UP 3Q earnings up 16%

Union Pacific Corp. Thursday reported third-quarter earnings of $904 million, or $1.85 per share, up 16% from the $778 million, or $1.56 per share, it notched in the third quarter of 2010. UP revenue for the quarter also was up 16%, at $5.1 billion.

Results beat Wall Street analyst consensus estimates of $1.81 per share, on revenue of $5.03 billion.

UP said higher pricing that offset slower growth and higher fuel costs, which it said rose 42% during the quarter. It also said it expects its business to continue growing despite doubts expressed by some over the U.S. economy. 

The railroad noted extreme summer weather, notably in Texas, caused damage to large portions of rights-of-way, driving up maintenance costs.

UP Executive Vice President Jack Koraleski allowed that the railroad was concerned over the slump in international intermodal volume, which declined during the quarter compared with a year ago, though intermodal revenue rose. “I have to admit that I’ve been disappointed" with traffic during the peak intermodal shipping season, Koraleski said.