quote:Union Pacific reports 2011 is its most profitable year
Published: January 19, 2012
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Photo by Tyler Dzierzek
OMAHA, Neb. — Union Pacific revealed that 2011 was the most profitable year in the company’s history as it shared its carloads, revenue, and profit data for the year’s fourth quarter today. Total traffic volumes rose 3 percent, but freight revenue grew 15 percent, hinting the railroad has been commanding higher rates.
UP’s strongest volume gains came from automotive and chemical traffic, both up 10 percent. Energy and industrial products also saw rising volumes, but agricultural and intermodal shipments were both down slightly.
The railroad’s operating ratio has dropped through the year. In the fourth quarter, it fell to 68.3 percent, a steady fall from a 74.7 percent ratio at the start of the year. The railroad’s overall operating ratio for 2011 was 70.7 percent.
“Looking ahead, we expect continued slow but steady economic growth in 2012,” UP President and CEO Jim Young said. “As we move into the 150th year of Union Pacific, our prospects have never looked better.”
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