(The following story by Joe Ruff appeared on the Omaha World-Herald website on April 23, 2009.)
OMAHA, Neb. Union Pacific reported today an 18 percent drop in net income for its first quarter, driven by decreased demand in the global recession.
The Omaha-based freight railroad reported net income of $362 million, or 72 cents a share, in the three months ending March 31, compared with $443 million, or 85 cents a share, in the same period last year. Revenue was down 20 percent to $3.4 billion compared with $4.3 billion last year.
The weak global economy affected all six of Union Pacific's business groups. Business volume was down 21 percent compared with last year's first quarter. A decline in fuel surcharge revenue contributed to the drop in freight revenue.
Automotive revenue was down 55 percent, followed by a 29 percent decline in industrial products, a 22 percent drop in intermodal business and a 15 percent decline in chemicals. Agriculture was down 13 percent and energy was down 6 percent.
Chairman and CEO Jim Young said the company is reducing costs across the board to help combat the decline.
