Summary Box: Union Pacific second-quarter earnings

AP News
Posted: Jul 21, 2011 1:44 PM
Summary Box: Union Pacific second-quarter earnings

RISING TIDE: Two of Union Pacific's rail lines remain closed because of flooding in the Midwest, and the railroad spent about $14 million defending against flooding during the second quarter. But Union Pacific still reported a 10 percent increase in second-quarter profit.

CHUGGING ALONG: Union Pacific reported net income of $785 million, or $1.59 per share, on $4.86 billion revenue. Analysts surveyed by FactSet expected Union Pacific to report earnings of $1.58 per share on revenue of $4.74 billion.

OPTIMISTIC OUTLOOK: CEO Jim Young says he expects shipping volume to increase in last half of the year because of the predicted large harvest and expectations of recovery in the automotive business. But that prediction could be derailed if consumer spending remains weak.