Omaha, Neb.-based Union Pacific Railroad reported profit in the fourth quarter of 2012 was $1 billion, compared with $964 million in the fourth quarter of 2011.
Total revenue in the fourth quarter increased 3 percent from $5.1 billion in 2011 to $5.3 billion in 2012. Quarterly freight revenue rose 2 percent, mainly driven by core pricing gains and fuel surcharge recoveries. Train speed in the fourth quarter, as reported to the Association of American Railroads, was 26.7 mph, up 4 percent versus the fourth quarter of 2011.
For the full year of 2012, income was $3.9 billion, jumping 20 percent from 2011’s profit of $3.3 billion. Yearly freight revenue increased by 18 percent to $6.7 billion, up from $5.7 billion in 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.