The Rising Influence of Rising Affluence

[DewDiligence]

UNP Reports Record Earnings in 2Q10

[Transport companies are a good barometer of economic activity and UNP, the largest railroad in the US, put up some very good numbers in 2Q10. Year-over-year revenue growth by segment was: automotive +105%; intermodal +35%; industrial +30%; chemicals +19%; coal/energy +17%; and agricultural +13%.]

http://online.wsj.com/article/SB10001424052748703467304575383163260662320.html

›JULY 23, 2010
By JOHN KELL

Union Pacific Corp.'s quarterly profit climbed 53% as the company posted volume growth for a second consecutive period. The railroad company also notched freight revenue growth across all business segments.

Union Pacific posted a second-quarter profit of $711 million, or $1.40 a share, up from $465 million, or 92 cents a share, a year earlier. The year-earlier results included a gain of 14 cents a share related to a Colorado land sale. Operating revenue climbed 27% to $3.96 billion.

The company's results further highlights the transport sector's rebound from last year's moribund levels, as executives at a number of companies have noted improved volume trends that suggest the U.S. economic recovery is continuing. Peer CSX Corp. and transport companies J.B. Hunt Transport Services and United Parcel Services Inc. have all reported results above prior-year levels and Wall Street's expectations.

Business volumes, as measured by total revenue carloads, increased 18% from a year ago, while diesel fuel prices rose 46%. Freight revenue climbed across all business segments, with the energy segment—the company's biggest by revenue—rising 17%.‹