OMAHA, Neb. — A wire service reports that Union Pacific Corp. (UNP.N), North America’s biggest railroad operator, said on Thursday first-quarter profits rose a better-than-expected 23 percent on cost-cutting and less expensive fuel.
The Omaha, Nebraska, company, which also owns Overnite Corp. trucking company, said in a news release that quarterly net income climbed to $222 million, or 86 cents a share, from $181 million, or 72 cents.
Wall Street had expected Union Pacific to earn between 80 cents and 85 cents a share, with a consensus forecast of 83 cents, according to nine analysts surveyed by Thomson Financial/First Call.
Shares of Union Pacific were up 93 cents, or 1.7 percent at $55.68 in afternoon New York Stock Exchange trading. Union Pacific shares were up about 9 percent over the last six months while the Dow Jones U.S. Total Market Index has risen about three percent.
Operating revenues rose to $2.97 billion from $2.94 billion.
Excluding Overnite, Union Pacific had first-quarter operating income of $489 million, up 14 percent from $430 million for the same period in 2001.
Overnite turned in first-quarter 2002 operating income of $10.5 million, little changed from 2001 on a pro forma basis. Pro forma results for 2001 include $1.9 million of operating income from Motor Cargo, which was acquired last November.
Rival railway Kansas City Southern Industries also reported first-quarter earnings on Thursday. Kansas City Southern said its net income nearly doubled, rising to $11.7 million, or 19 cents a diluted share, up from $5.9 million, or 10 cents a year ago.
Revenue at Kansas City Southern dipped to $142.5 million from $144 million a year ago.