Union Pacific saw first quarter revenue rise 14 percent year-over-year to $5.1 billion, as double-digit increases in four of its six business groups pushed the railroad to a record quarter.
The company handled 1 percent more freight than the year before, paralleling the strong pricing power already seen through CSX’s recent reporting of record first quarter earnings. UP’s average revenue per carload rose 12 percent year-over-year in the first quarter to $2,175.
The Omaha, Neb.-based company’s earning grew 35 percent to $863 million in the same period. Increased pricing and improved fuel surcharge recovery drove revenue growth in the railroad’s six business groups.
"We're clearly realizing the benefits of our diverse franchise, despite current coal challenges,” said UP CEO Jack Koraleski.
Agriculture and energy volume, which includes coal loads, both fell in the first quarter, while automotive and industrial product volume saw double-digit increases. Intermodal volume ticked up 1 percent year-over-year in the same period.
UP’s operating income in the first quarter rose 33 percent year-over-year to $1.6 billion, while the railroad’s operating ratio improved 4.2 points to 70.5 percent.