UP SEES 2% DIP IN 1ST-QUARTER INCOME
Union Pacific Corp., North America's largest railroad, said Thursday its net income for the first quarter was $181 million, down 2 percent from the year-earlier quarter.
UP, excluding Overnite Transportation Co., its less-than-truckload subsidiary, reported operating income of $430 million, down 3 percent, while revenue rose 1 percent to $2.94 million.
“We are pleased with our first-quarter performance, given the difficult economic environment,” said Richard K. Davidson, chairman and chief executive officer. “Looking forward, we are confident in our business strategy and competitive position, although economic conditions continue to cause near-term uncertainty.”
Commodity revenue improved 1 percent to $2.6 billion, led by energy revenue, up 12 percent to a record $593.3 million. Agricultural products rose 6 percent to $369.8 million and intermodal revenue rose 2 percent to $450.1 million. Automotive ($275.6 million), chemical ($390.3 million) and industrial products ($472.0 million) each declined about 5 percent.
Operating ratio rose to 83.8 percent, from 82.9 percent in the first quarter of 2000.
Overnite reported net income of $7.9 million, compared to $2.3 million for the year earlier period. Revenue rose 4 percent to $280 million. Operating ratio fell 2.9 percentage points to 96.9 percent.
The LTL subsidiary opened service centers in Benicia and Bakersfield, Calif. in the first quarter and plans expansions in California's San Fernando Valley, Albuquerque, N.M., and Rolla, Mo.