Union Pacific Reports Highest Profit in its History
January 24th, 2013 Union Pacific reported its profit in the fourth quarter of 2012 was $1 billion, or $2.19 per diluted share, compared with $964 million, or $1.99 per diluted share, in the fourth quarter of 2011. Total revenue in the fourth quarter increased 3% from $5.1 billion in 2011 to $5.3 billion in 2012. Quarterly freight revenue rose 2%, mainly driven by core pricing gains and fuel surcharge recoveries. Volume declines in coal and agricultural products offset gains in chemicals, automotive and intermodal shipments, while industrial products were flat compared with 2011. Quarterly train speed, as reported to the Association of American Railroads, was 26.7 mph, up 4% versus the fourth quarter of 2011. For the full year of 2012, income was $3.9 billion, or $8.27 per diluted share, jumping 20% from 2011’s profit of $3.3 billion, or $6.72 per diluted share. Yearly freight revenue increased by 18% to $6.7 billion, up from $5.7 billion in 2011. Carloadings were flat versus 2011. “Although it was a challenging year on many fronts, 2012 was Union Pacific’s most profitable year in our 150-year history,” said Jack Koraleski, the company’s CEO, in a written statement. “For 2013, we’re expecting to see many of the same challenges we faced last year,” Koraleski added.