Union Pacific has announced its financial results for the third quarter of 2014. It reported revenue of $6.2bn, an 11% rise year-on-year. The company also recorded operating income of $2.3bn, which represented an increase of 19% compared to Q3 2013. Accordingly Union Pacific’s operating margin stood at 37.10%.
“Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong volume growth,” said Jack Koraleski, Union Pacific’s Chief Executive Officer. “As we continue to focus on improving our service, we are encouraged by the accomplishments we achieved in the quarter, including a two and a half point improvement in our operating ratio to a record 62.3%.”
Union Pacific’s revenue result was largely attributable to volumes which, as measured by total revenue carloads, increased 7% compared to 2013. Volume increased in agricultural products, industrial products, intermodal, automotive and chemicals. Coal volumes were flat versus 2013. In addition rising prices added to the higher revenue and operating income results.
“We are optimistic about the remainder of the year. Assuming the economy and weather cooperate, we are well positioned to finish up the year with record results,” concluded Koraleski.
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