Union Pacific today reported its profit in the third quarter of 2013 was $1.15 billion, increasing 10 percent year-over-year from $1.04 billion.
Quarterly revenue rose 4 percent to $5.57 billion, from $5.34 billion in the same period last year. Freight revenue in the third quarter was up 5 percent, mainly driven by core pricing gains, UP said.
Business volumes in the third quarter, as measured by total revenue carloads, were flat versus 2012. Volume growth from industrial products, automotive and chemical shipments was offset by declines in coal, agricultural products and intermodal shipments.
UP’s operating ratio of 64.8 percent was a best-ever quarterly record, 1.8 points better than the third quarter of 2012 and 0.9 points better than the previous quarterly record set in the second quarter of 2013.
“Union Pacific achieved all-time record financial results this quarter,” said Jack Koraleski, CEO of the Class I railroad, in a written statement. “Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise.”
Lost revenue and increased costs from the flooding in Colorado reduced operating income by about $10 million.
Through the third quarter, UP’s profit was $3.21 billion, up 11 percent year-over-year, and revenue was $16.33 billion, up 4 percent.
“As we move through the fourth quarter, we continue to monitor the economic landscape,” Koraleski said. “Supported by our diverse franchise, we remain agile and well positioned for economic recovery.”