Union Pacific 3Q profit rises on higher prices

AP News
Posted: Oct 20, 2011 8:27 AM
Union Pacific 3Q profit rises on higher prices

Union Pacific says its third-quarter earnings rose 16 percent as the railroad charged higher prices to offset slower growth in shipments and higher fuel costs.

The nation's largest railroad also said it expects its business to continue to grow despite an uncertain economic outlook.

The Omaha, Neb., company earned $904 million, or $1.85 per share. That's up from $778 million, or $1.56 per share, a year ago.

Revenue rose 16 percent to $5.1 billion in the three months ended Sept. 30.

FactSet says analysts predicted a profit of $1.81 per share on revenue of $5.03 billion.

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Union Pacific Corp. said Thursday that shipping volume grew 1 percent in the period. Shipments of agricultural products and transfers between trains and ships _ which are mostly consumer products _ both fell. Revenue increased in all six shipping categories.