(Bloomberg News circulated the following article on June 29.)
OMAHA, Neb. — Union Pacific Corp., the biggest U.S. railroad by sales, has seen revenue growth of 10 percent in the second quarter, Chairman and Chief Executive Richard Davidson said Tuesday.
It would be the biggest increase since the fourth quarter of 2003.
Volume is growing between 1 percent and 2 percent so far this year, and price increases are pushing revenue growth to about 10 percent for the quarter, Davidson said. The increase is being driven by coal, construction material and import-export shipments, he said.
Union Pacific, the least profitable railroad in the first quarter, is using price increases to raise earnings.
The company’s first-quarter margin was 9.9 cents per dollar of sales, less than half of rival Burlington Northern Santa Fe Corp.’s 22 cents.
Executive Vice President Jack Koraleski said May 24 that 2005 sales will rise as much as 9 percent, including 7 percent from higher prices and fuel fees.
Chief Financial Officer Robert Knight said on a conference call May 24 that earnings this quarter will be 75 cents to 85 cents a share, reiterating an April forecast. The rise would the first in six quarters, exceeding the $158 million, or 60 cents a share, posted in last year’s second quarter.