Union Pacific first quarter profit increases 24pc to US$639 million

AMERICA's biggest railway, the Union Pacific (UP) posted a 24 per cent year-on-year profit increase to US$639 million in the first quarter on the back of increased traffic across the board.


"The economy is showing signs of continued improvement, and we're optimistic about growth," said UP chairman, president and CEO James Young.


"We saw volume growth in all commodities," he said, "and effectively leveraged that growth by running a safe and efficient network despite spiking fuel prices and winter weather challenges across most of the nation's rail network."


Mr Young said these efforts produced a "best-ever first quarter" operating ratio and record cash from operations.


Some gains came from higher pricing. UP said traffic grew five per cent but freight revenue grew 13 per cent to $4.2 billion, as average revenue per shipment climbed eight per cent. Intermodal scored even higher with revenues increasing 11 per cent while rising four per cent in volume.


Agricultural shipments paid off best, followed by chemicals and industrial products, noted Newark's Journal of Commerce. Intermodal ranked lowest in per unit receipts, though it had the sharpest increase of any major cargo class, said the company.


The railway employed 44,045 over the period, up five per cent year on year, but increased their productivity with a one per cent increase in gross ton-miles per worker.


Dwell time grew one per cent for trains at terminals, while average train speeds of 26.1 miles per hour, slightly behind the 26.2 mph in 2010's first quarter.
(Source:http://www.schednet.com)