UP revenues down for all commodities
Union Pacific Corp. said it had third quarter net profit of $517 million, 26 percent less than in the same 2008 period.
Revenue for the period ending Sept. 30 was $3.7 billion, 24 percent less than in the same 2008 period.
'Union Pacific's third quarter results were clearly affected by the global recession and related decline in our rail traffic,' said Jim Young, chairman and chief executive officer.
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| Young |
The company said business volume, as measured by total revenue carloads, was down 15 percent versus the third quarter 2008. Reflecting lower volumes, year-over-year freight revenue declined 25 percent to $3.5 billion in the third quarter. Lower fuel surcharge revenue, down $590 million year-over-year, contributed substantially to the decline.
The company said revenues were down for all commodities: chemicals, 16 percent; energy, 21 percent; intermodal, 22 percent; agricultural, 23 percent; automotive, 30 percent; and industrial products, 39 percent.
'As we enter the final quarter of 2009, business volumes seem to have stabilized, but at very low levels for Union Pacific,' Young said.