(The Associated Press circulated the following story on January 25.)
OMAHA — Union Pacific Corp., the nation’s largest railroad operator, on Thursday said fourth-quarter profit rose 63 percent, due mostly to more efficient operations and higher revenue from shipments of agricultural and energy-related commodities.
Quarterly earnings rose to $485 million, or $1.78 per share, from $296 million, or $1.10 per share during the same period in 2005.
The result surpassed the expectations of analysts polled by Thomson Financial, who had forecast a profit of $1.57 per share.
Revenue grew 9 percent to $3.96 billion from $3.62 billion, but was below analysts’ expectations for revenue of $4.03 billion.
Union Pacific said it posted improved revenue in five of its six business groups, led by 20 percent increases from shipping agricultural and energy-related commodities. Revenue from industrial-related products fell slightly.
The company also said its operating ratio, or the ratio of operating expenses to revenue and a key measure of efficiency for railroads, improved to 79.6 percent from 85.3 percent in 2005. Railroads typically target an operating ratio of 80 percent.
The company said its fuel surcharge program provided a boost to average revenue per car.