Sunday, December 21st8.0°C
24124
23931

Union Pacific railroad hauls 2 per cent more freight to deliver 13 per cent profit increase

OMAHA, Neb. - Union Pacific reported a 13 per cent jump in fourth-quarter profit Thursday as strong grain, automotive and industrial shipments offset a 10 per cent drop in loads of coal.

The Omaha, Neb., railroad earned $1.2 billion net income, or $2.55 per share, in the last three months of 2013. That's up from last year's $1 billion net income, or $2.19 per share.

Revenue improved 7 per cent to $5.63 billion as the railroad increased rates 3.5 per cent and volume grew 2 per cent overall.

Edward Jones analyst Logan Purk said the results show that Union Pacific has more pricing power than other railroads because it has more long-term contracts coming up for renewal.

Analysts surveyed by FactSet expected Union Pacific Corp. to report more modest quarterly earnings per share of $2.49 per share on revenue of $5.57 billion.

Company shares climbed to a new 52-week high of $174.82 after the report. The stock was still up $4.50 at $173 in afternoon trading.

The numbers of cars, chemicals, crops, fuel, lumber and containers of imported goods railroads carry offer investors clues about the health of the nation's economy.

CEO Jack Koraleski said the economy should continue to improve because auto sales, housing construction and manufacturing are predicted to be strong, and it doesn't look like Congress will derail the economy with another fiscal showdown.

"That slow, steady growth feels good to us," Koraleski said.

Agricultural shipments grew 13 per cent thanks to the strong grain harvest. The railroad also delivered 10 per cent more automotive shipments, and hauled 9 per cent more shipments of industrial products.

Weak coal demand has been a challenge for all the major freight railroads, with so many power suppliers switching to cheap natural gas.

Even with the decline in coal shipments, Union Pacific said coal revenue declined only 1 per cent to $985 million because of rate increases.

The railroad repurchased more than 4.9 million shares during the quarter for $786 million reducing the number of shares outstanding by 2 per cent.

Through all of last year, Union Pacific generated $4.4 billion net income, or $9.42 per share, on $22 billion revenue. That was 11 per cent higher than 2012's $3.9 billion net income, or $8.27 per share, on $21 billion revenue.

Union Pacific operates 32,400 miles of track in 23 states from the Midwest to the West and Gulf coasts.

___

Follow Josh Funk online at www.twitter.com/funkwrite

___

Online:

Union Pacific Corp.: www.up.com

The Canadian Press


Read more Business News

24153


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8611-0.0006
Gold1195.90+2.50
Oil56.50+2.39
Lumber338.00-0.70
Natural Gas3.464-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
24130


23405

FEATURED Property
20134751138 Gregory Road
5 bedrooms 4 baths
$1,395,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_








Member of BC Press Council


24433