UP reports 12% profit dip
Union Pacific Railroad said it had net profit of $468 million in the second quarter, 12 percent lower than the same 2008 period.
Operating revenue totaled $3.3 billion versus $4.6 billion in the second quarter of 2008.
Business volumes, as measured by total revenue carloads, were down 22 percent versus the second quarter 2008. Reflecting lower volumes, year-over-year freight revenues declined 28 percent to $3.1 billion. Lower fuel surcharge revenue in the second quarter, down over $500 million year-over-year, contributed to this decline.
By segment, the company said second quarter freight revenues were down as follows:
' Agricultural was down 21 percent.
' Energy was down 22 percent.
' Intermodal was down 23 percent.
' Chemicals was down 24 percent.
' Industrial Products was down 39 percent.
' Automotive was down 54 percent.
'Although we expect it will be some time before the economy recovers, it appears that volume levels may have hit the bottom as the economy seems to have stabilized,' said Jim Young, the company’s chairman and chief executive officer.