Union Pacific Profit Rises 13%

By Tess Stynes 

Union Pacific Corp. said its fourth-quarter earnings rose 13% on improved shipments and pricing gains, despite a continued slump in coal volume.

Top U.S. railroads--considered a barometer of overall economic activity--have broadly been hurt by weak coal demand from domestic utilities as a result of low-cost natural gas and high coal stockpiles. Economic uncertainty has also weighed on the company's intermodal volume, which measures the movement of freight by two or more modes of transportation.

Chief Executive Jack Koraleski said Union Pacific recorded overall volume growth for the first time in six quarters, despite significantly weaker coal shipments.

Union Pacific reported a profit of $1.17 billion, or $2.55 a share, up from $1.04 billion, or $2.19 a share, a year earlier. Operating revenue increased 7.2% to $5.63 billion.

Analysts polled by Thomson Reuters expected per-share profit of $2.49 and revenue of $5.57 billion.

Volume--or total revenue carloads--rose 2% as growth in its agricultural products, automotive, industrial products and intermodal shipments more than offset declines in coal and chemical volumes.

Average revenue per car rose 5.6%.

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