Union Pacific today reported its profit in the second quarter of 2013 was $1.1 billion, compared with $1.0 billion in the same quarter last year.
Despite lower carloadings, operating revenue rose 5 percent year-over-year from $5.2 billion in 2012 to $5.5 million in 2013, including a 5 percent increase in freight revenue. Revenue gains in automotive, chemicals and coal, which were each up 12 percent, plus a 7 percent increase in industrial products’ revenue, offset drops in agricultural and intermodal, which declined 8 percent and 1 percent respectively.
Total revenue carloads dropped by 1 percent in the second quarter. Volume declines in agricultural products and intermodal shipments more than offset gains in chemicals and automotive shipments, while industrial products and coal shipments were flat versus last year.
The Class I railroad’s operating ratio in the second quarter was a record 65.7 percent, 0.9 points better than the previous all-time low, which was set in the third quarter of 2012.
“Union Pacific achieved record financial milestones this quarter,” said Jack Koraleski, UP’s CEO, in a written statement. “When combined with solid core pricing gains, we more than offset the slight shortfall in volumes to generate best-ever quarterly earnings and operating ratio performance.”
“We’ll continue focusing on reinvestible pricing; attracting new, profitable growth opportunities; and running a safe, efficient and reliable network that generates greater value for both our customers and shareholders going forward,” Koraleski concluded.