Railroad sees increased volumes in nearly all commodity groups.
Union Pacific said Thursday it had a profit of $1.4 billion in the fourth quarter of 2014, compared with $1.2 billion in the same 2013 period.
Fourth quarter revenue was $6.2 billion, a 9 percent increase over the same period the prior year.
The railroad saw average diesel fuel price fall to $2.66 per gallon in the fourth quarter, 14 percent below where it was a year earlier.
While automotive traffic was flat when compared to the same period last year, UP said traffic was up in all other categories: industrial products, up 15 percent; intermodal, up 11 percent; coal, up 9 percent; agricultural products, up 9 percent; chemicals, up 8 percent.
For the full year, UP had a profit of $5.2 billion in 2014, compared with $4.4 billion in 2013. Operating revenue was $24 billion in 2014 versus $22 billion in 2013.
Jack Koraleski, Union Pacific chief executive officer, said “Robust volumes challenged our network for much of the year, and we remained focused on adding the necessary resources to safely improve service. We are encouraged with the progress we are making.”
Looking ahead, he said, “Overall, the U.S. economy continues to move forward at a moderate pace, but of course, there are always uncertainties. Clearly, one of the biggest uncertainties is the outlook for energy markets, which will bring both challenges and opportunities as we move ahead. We’re entering the year well-resourced and we’re looking forward to safely providing efficient, value-added service for our customers, and increasing returns for our shareholders in 2015.”
Union Pacific reports higher profits, revenues
