UNION PACIFIC’S 4TH-QUARTER PROFIT DROPS 5.4%
Union Pacific Corp., which operates North America's largest railroad, said fourth-quarter net income fell 5.4 percent, to $229 million from $242 million for the same period in 1999.
The results excluded a $72-million after-tax charge for work force reduction costs.
The dip in profit was the result of an “economic downturn,” said Dick Davidson, chairman of Union Pacific Corp., who cited the slowing U.S. economy and a 70-percent increase in fuel costs as contributing factors. He predicted that UP would ultimately “come out a stronger company than we have been.”
Sales in the fourth quarter rose 3.4 percent, to $2.95 billion, compared to $2.86 billion for the previous year’s fourth quarter. Operating income, excluding the after-tax charge, was $38 million, compared to $499 million for the year-earlier period.
For 2000, UP reported net income of $842 million, up 4 percent over the $810 million the company earning in 1999.
Full-year revenue rose 6 percent to $11.88 billion, while operating income rose 5 percent to $1.90 billion.