UP reports all-time quarterly records in 3Q results

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OMAHA, Neb. – Union Pacific Corp. reports third quarter 2014 net income of $1.4 billion, or $1.53 per diluted share, compared to $1.15 billion, or $1.24 per diluted share, in the third quarter 2013. Those results have led to new quarterly records being set for diluted earnings per share, operating revenues, operating income, and operating ratio.

"Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong volume growth," says Jack Koraleski, Union Pacific chief executive officer.

Operating revenue increased 11 percent in the third quarter 2014 to $6.2 billion, versus $5.6 billion in the third quarter 2013. Third quarter business volumes, as measured by total revenue carloads, increased 7 percent compared to 2013. Volume increased in agricultural products, industrial products, intermodal, automotive, and chemicals. Coal volumes were flat versus 2013.

Quarterly freight revenue increased 11 percent compared to the third quarter 2013, driven by volume growth and core pricing gains. The breakdown shows industrial products up 19 percent, agricultural products up 19 percent, intermodal up 15 percent, chemicals up 6 percent, automotive up 3 percent, coal up 2 percent.

Additionally, UP's operating ratio of 62.3 was an all-time quarterly record, 2.5 points better than the third quarter 2013 and 1.2 points better than the previous all-time quarterly record set in the second quarter 2014. The average quarterly diesel fuel price of $3.01 per gallon in the third quarter 2014 was down 5 percent compared to the third quarter 2013. Quarterly train speed, as reported to the Association of American Railroads, was 23.8 mph, 10 percent slower than the third quarter 2013. The company repurchased more than 8.3 million shares in the third quarter 2014 at an average share price of $102.54 and an aggregate cost of $856 million.

"We are optimistic about the remainder of the year," Koraleski says. "Assuming the economy and weather cooperate, we are well positioned to finish up the year with record results. We continue to see tremendous opportunity across our diverse franchise and remain focused on improving our network velocity and fluidity so that we can leverage these opportunities by safely providing our customers with excellent service and our shareholders with strong returns."

NEWSWIRETrains News Wire

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