OMAHA, Neb. — Union Pacific Corporation today reported record net income of $304 million, or $1.15 per diluted share, the company announced in a press release. This compares to net income of $243 million, or $.95 per diluted share in the second quarter of 2001. Operating income and earnings per share both had double-digit increases in the quarter with 22 percent and 21 percent growth, respectively.
“This was an outstanding quarter for Union Pacific,” said Dick Davidson, chairman and chief executive officer. “Clearly, we have momentum in all aspects of our business. The Railroad leveraged increased revenue, employee productivity gains and lower fuel prices into records for operating income, net income, and operating ratio. ”
Second Quarter Highlights
Union Pacific Corporation, excluding Overnite Corporation, reported record second quarter operating income of $583 million compared to $478 million for the same period in 2001 — a 22 percent increase.
* Railroad revenue increased 4 percent
* Employee Productivity (gross ton-miles/employee) increased 9 percent to a second quarter record level
* Operating Ratio (operating expenses/operating revenue) improved 3.0 percentage points to a second quarter record 79.3 percent
Railroad Quarterly Records
— Best overall quarter for Operating Revenue, Operating Income, and Operating Ratio
— Best overall quarter for Total Carloadings and Revenue Ton Miles
— Automotive, Intermodal and Industrial Products each set all-time quarterly records in revenue
Second Quarter Railroad Commodity Revenue Summary versus 2001
— The following commodity groups had revenue growth ranging from 11 percent to 2 percent:
— Intermodal up 11 percent
— Automotive up 8 percent
— Chemicals up 4 percent
— Agricultural up 3 percent
— Industrial Products up 2 percent
— Energy was the only commodity group that was down, at 1 percent.
“Five of our six commodity groups posted improved revenue this quarter,” Davidson said. “While this highlights the strength of our diverse commodity mix and competitive product offerings, it’s also a signal to me that there are rays of light coming through the clouds that have been over the American economy for months.”
Overnite Corporation
Overnite Corporation reported a 2 percent increase in second quarter operating income of $18.3 million, compared to $18.0 million in 2001 on a pro forma basis. (Pro forma results for 2001 include $2.5 million of operating income from Motor Cargo, which was acquired on November 30, 2001.) Operating revenue was up 2 percent to $331.7 million from $324.3 million last year. Overnite’s operating ratio was unchanged year over year at 94.5 percent.
Union Pacific Corporation is one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two- thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical- producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six gateways to Mexico, Union Pacific has the premier rail franchise in North America. The Corporation’s trucking operations include Overnite Corporation which owns its less-than-truckload carriers, Overnite Transportation and Motor Cargo.