Union Pacific profit climbs

Union Pacific profit climbs

   Union Pacific Corp. said it had first quarter net profit of $516 million, a 43 percent increase over the same 2009 period.

   Revenues increased 16 percent to $3.76 billion.

   “We saw quarterly volume growth on our railroad for the first time in two years,” said Jim Young, UP chief executive officer. “Although the strength and timing of a sustained economic recovery are still uncertain, we are feeling better about our 2010 growth opportunities.”

Young

   The company said carload volumes improved 13 percent, and revenue per carload was up an average of 3 percent. Volumes were up in all categories of freight, except coal, which slipped 1 percent.

   Intermodal volumes climbed 21 percent and intermodal revenue improved 25 percent as average revenue per car was up 4 percent in intermodal.

   The company said improved consumer demand and inventory restocking led to a 12 percent increase in international intermodal volume. Domestic intermodal volume grew 33 percent, buoyed by the improved economy, business converted from the highway and increased business with Hub Group, which had moved business from the BNSF Railroad.

   The company’s Streamline subsidiary, which provides door-to-door intermodal transportation, had 77 percent growth, and the company said almost half of that growth came from highway conversions.

   Young noted that during the quarter UP and East Coast railroad CSX created a domestic interline container program, UMAX, which he said better positions the company in the intermodal business for highway conversions and other growth opportunity.

   Like a deal announced last fall with Pacer, “the CSXI renegotiation was pulled ahead and with its completion there are no remaining legacy contract in our domestic intermodal business,' he said. 'This is significant because it allows us to work directly with the majority of our intermodal customers.

   “Our intermodal franchise positions us to offer the most complete coverage of domestic intermodal lanes and our strategic investments and process improvements that support excellent service allowed us to improve our transit time in 60 of those lanes during the first quarter,” he said.

   He added a new intermodal terminal in Joliet, Ill., scheduled to open in late summer will increase international and domestic capacity and improve efficiency.