Union Pacific QI profit up 6pc to US$1.4 billion, but sales slip 2pc
THE Union Pacific (UP), the biggest US railway, first quarter profit increased six per cent year on year to US$1
THE Union Pacific (UP), the biggest US railway, first quarter profit increased six per cent year on year to US$1.4 billion, drawn on revenues of $5.4 billion, which fell two per cent.
The Omaha-based railway said quarterly freight revenue declined two per cent to $5.01 billion as 'increased fuel surcharge revenue and core pricing gains were offset by lower volumes and negative mix', the company said.
Energy freight revenue declined 16 per cent to $982 million and agricultural product revenue decreased by three per cent to $1.07 billion. The drops offset the five per cent industrial freight increase ($1.41 billion) and three per cent premium freight growth ($1.55 billion).
'We delivered record first-quarter financial results driven by improved operating performance, while dealing with significant weather challenges,' said UP chairman, president and CEO Lance Fritz.
'We look to build on the momentum we had prior to the weather challenges and provide a consistent, reliable service product for our customers, while at the same time improving our operating efficiency,' he said.