THE union Pacific Railroad posted a 16.07 per cent year-on-year net profit increase in 2021 to US$6.5 billion, drawn on operating revenues of $21.8 billion, which increased 12 per cent
Fourth quarter net profit hit $21.8 billion, an increase of 6.2 per cent year on year, drawn on revenues of $5.7 billion, up 12 per cent.
The results marked Union Pacific's most-profitable year ever 'despite ongoing global supply-chain challenges that impacted volumes,' said CEO Lance Fritz.
Carload volume fell 3.9 per cent on lower shipments of vehicles because of a chip shortage that has crimped production and fewer maritime containers as ports remain backed up.
Volumes for industrial chemicals, fertiliser and coal rose. Union Pacific's operating ratio, a benchmark measure of efficiency in which a lower number is better, was 57.4 per cent, worsening from 55.6 per cent a year earlier.
All the major US railways have grappled with similar challenges, causing carloads for the group to drop three per cent in the final three months of the year, according to the Association of American Railroads. The companies, including Union Pacific, have been hiring more workers to deal with the congestion and to prepare for growth this year.
Service deteriorated in the fourth quarter, with 58 per cent of regular railcars arriving on time compared with 74 per cent a year earlier. The poor service may hinder a push to increase volume by taking freight from trucks.
Union Pacific will get a lift on volumes after winning a contract for trucker Knight-Swift Transportation Holdings containerised freight business that started this year.
SeaNews Turkey
Fourth quarter net profit hit $21.8 billion, an increase of 6.2 per cent year on year, drawn on revenues of $5.7 billion, up 12 per cent.
The results marked Union Pacific's most-profitable year ever 'despite ongoing global supply-chain challenges that impacted volumes,' said CEO Lance Fritz.
Carload volume fell 3.9 per cent on lower shipments of vehicles because of a chip shortage that has crimped production and fewer maritime containers as ports remain backed up.
Volumes for industrial chemicals, fertiliser and coal rose. Union Pacific's operating ratio, a benchmark measure of efficiency in which a lower number is better, was 57.4 per cent, worsening from 55.6 per cent a year earlier.
All the major US railways have grappled with similar challenges, causing carloads for the group to drop three per cent in the final three months of the year, according to the Association of American Railroads. The companies, including Union Pacific, have been hiring more workers to deal with the congestion and to prepare for growth this year.
Service deteriorated in the fourth quarter, with 58 per cent of regular railcars arriving on time compared with 74 per cent a year earlier. The poor service may hinder a push to increase volume by taking freight from trucks.
Union Pacific will get a lift on volumes after winning a contract for trucker Knight-Swift Transportation Holdings containerised freight business that started this year.
SeaNews Turkey
