UP reports record revenue and earnings

Despite damaging floods and rising fuel costs that negatively impacted the operating ratio, Union Pacific has reported record 2011 second-quarter net income of $785 million, an increase of 10% compared with the second quarter of 2010. Per-share earnings grew to $1.59 from $1.40 in the 2010 period.

UP also set net records with operating revenue of $4.9 billion, up 16%, operating income of $1.4 billion, up 9%, and the Customer Satisfaction Index, which improved three points to 92. Second-quarter carloads increased 3%; intermodal volume was down slightly.

UP’s operating ratio of 71.3% was 1.9 points worse than the second-quarter record set in 2010.

“Union Pacific achieved another strong quarter, delivering best-ever quarterly earnings,” said Jim Young, Union Pacific chairman and CEO. “We saw the benefits of our diverse franchise, with volume growth in five of our six commodity groups. We generated record second-quarter operating income and cash from operations despite the impact of severe flooding in the Midwest.”