(Reuters circulated the following on October 22, 2009.)
CHICAGO — No. 1 U.S. railroad Union Pacific Corp (UNP.N) reported on Thursday better-than-expected quarterly earnings, as the company said business volumes seem to have stabilized.
The Omaha, Nebraska-based company reported third-quarter net income of $517 million, or $1.02 per diluted share, compared with $703 million, or $1.38 per diluted share, in the third quarter of 2008.
Analysts had expected earnings for the quarter of $1.00 per share, according to Thomson Reuters I/B/E/S.
Quarterly operating revenues fell to $3.7 billion from $4.8 billion in the third quarter of 2008.
The company is still suffering the effects of a lingering U.S. economic downturn, and business volumes, as measured by total revenue carloads, were down 15 percent versus the third quarter of 2008.
But Union Pacific Chief Executive Officer Jim Young said the decline in railcar volume is flattening out.
“As we enter the final quarter of 2009, business volumes seem to have stabilized, but at very low levels for Union Pacific,” Young said.