Fuel costs burn Union Pacific earnings

Fuel costs burn Union Pacific earnings

Union Pacific Corp., the largest U.S. rail operator, on Thursday said quarterly profits fell on increased fuel costs.

The company, based in Omaha, Neb., said third-quarter profit was $317 million, down from $437 million a year earlier, and included gains from a property sale and tax settlements.

The company said fuel costs added $50 million to expenses in the third quarter.

Revenue rose 4 percent from a year earlier to almost $3 billion on stronger business in agricultural, industrial and energy loads.

Operating income from continuing operations was $592 million, down from the $619 million in the same quarter in 2002.