Rail transportation provider Union Pacific Corp. (UNP) reported Thursday a profit for the first quarter that increased 35 percent from last year as increase in freight revenues more than offset higher oil prices.
Both earnings per share and quarterly revenues topped analysts' expectations. The company also said it expects to drive record financial results for the full-year 2012 with the benefits of its diverse franchise, despite the challenge of softer coal demand.
"Union Pacific achieved record financial results across the board this quarter. We're clearly realizing the benefits of our diverse franchise, despite current coal challenges," Acting President and CEO Jack Koraleski said in a statement.
In early March, the company's precious President, Chairman and CEO Jim Young took medical leave of absence from his responsibilities, while remaining as chairman only. He is being treated for recently diagnosed pancreatic cancer. Young began his railroad career with Union Pacific in 1978 and has held a variety of senior management positions.
The Omaha, Nebraska-based operator of the largest railroad in North America noted that four of its six business groups reported volume growth, with increase in shipments of automotive, industrial, and chemical products. Meanwhile, agricultural and energy products were down, with intermodal volumes remaining flat.
Operating ratio for the quarter improved 4.2 percentage points to 70.5 percent amid pricing gains, efficient operations, and improved fuel surcharge recovery. The company also reported a 2 points improvement in customer satisfaction index to a quarterly record of 93 from last year.
Business volumes, as measured by total revenue carloads, edged up 1 percent from last year to 2.22 million carloads, pushing year-over-year freight revenues up 14 percent amid double-digit growth in four of the six business groups. Average revenue per car load also increased 12 percent to $2,175 from last year.
The company reported net income of $863 million or $1.79 per share for the first quarter, higher than $639 million or $1.29 per share in the prior-year quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $1.63 per share for the first quarter. Analysts' estimates typically exclude special items.
Total operating revenues grew 14 percent to a quarterly record of $5.10 billion from $4.49 billion in the same quarter last year, and topped seventeen Wall Street analysts' consensus estimate of $4.97 billion.
Operating income for the quarter increased 33 percent to $1.51 billion from the prior-year quarter. Total operating expenses were $3.60 billion, up 7 percent from the year-ago quarter, including fuel expenses growth of 12 percent to $926 million from last year.
Average diesel fuel price for the first quarter increased 12 percent to $3.23 per gallon from $2.28 per gallon in the year-ago quarter.
Looking ahead to fiscal 2012, Koraleski said, "With a strong first quarter behind us, we're focused on the prospects that lie ahead. Although softer coal demand remains a challenge, the benefits of our diverse franchise should support continued opportunities in other markets, driving record financial results for the year."
UNP closed Wednesday's regular trading session at $109.65, up $0.40 on a volume of 3.00 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.