Union Pacific has announced its financial results for the full year of 2014. It reported operating revenues of $24.0bn, an increase of 9% year-on-year. The company also recorded operating income of $8.8bn, a rise of 18% on 2013’s result. Accordingly the company’s margin stood at 36.67%.
During 2014 freight revenue increased to $22.6bn, a 9% increase over 2013. Carloadings were up 7% versus 2013, with growth in each business group. Volume growth was led by agricultural products, industrial products, and intermodal effecting the top line growth at Union Pacific.
Operating costs were reduced significantly as average diesel fuel prices decreased by 6% to $2.97 per gallon in 2014 from $3.15 per gallon in 2013, thus the company’s margin improved over the year.
Jack Koraleski, Union Pacific’s Chief Executive Officer said, “With 2014 behind us, we’re intently focused on the year ahead. Overall, the US economy continues to move forward at a moderate pace, but of course, there are always uncertainties. Clearly, one of the biggest uncertainties is the outlook for energy markets, which will bring both challenges and opportunities as we move ahead. We’re entering the year well-resourced and we’re looking forward to safely providing efficient, value-added service for our customers, and increasing returns for our shareholders in 2015.”
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