OREANDA-NEWS. Union Pacific Corporation (NYSE: UNP) today reported 2013 second quarter net income of USD 1.1 billion, or USD 2.37 per diluted share, compared to USD 1 billion, or USD 2.10 per diluted share, in the second quarter 2012.
Best-Ever Quarterly Records
Diluted earnings per share of USD 2.37 improved 13 percent.
Operating revenues totaled USD 5.5 billion, up 5 percent.
Operating income totaled USD 1.9 billion, up 9 percent.
Operating ratio of 65.7 percent improved 1.3 points.

"Union Pacific achieved record financial milestones this quarter," said Jack Koraleski, Union Pacific chief executive officer.  "We managed our network efficiently and continued to show the agility of our strong franchise.  When combined with solid core pricing gains, we more than offset the slight shortfall in volumes to generate best-ever quarterly earnings and operating ratio performance."

Second Quarter Summary

Despite lower carloadings, operating revenue increased 5 percent in the second quarter 2013 to USD 5.5 billion versus USD 5.2 billion in the second quarter 2012. Second quarter business volumes, as measured by total revenue carloads, decreased 1 percent compared to 2012. Volume declines in agricultural products and intermodal shipments more than offset growth in chemicals and automotive shipments.Volumes for industrial products and coal shipments were flat versus 2012.In addition:
Quarterly freight revenue increased 5 percent compared to the second quarter 2012, driven by core pricing gains.
Union Pacific's operating ratio of 65.7 percent was a best-ever quarterly record, 1.3 points better than the second quarter 2012 and 0.9 points better than the previous best-ever quarterly record set in the third quarter 2012.
The average quarterly diesel fuel price of USD 3.10 per gallon in the second quarter 2013 was down 3 percent compared to the second quarter 2012.
The Customer Satisfaction Index of 93 tied the second quarter 2012 record.
Quarterly train speed, as reported to the Association of American Railroads, was 25.7 mph, down 3 percent versus the second quarter 2012.
The Company repurchased nearly 3.1 million shares in the second quarter 2013 at an average share price of USD 151.42 and an aggregate cost of USD 463 million.

Summary of Second Quarter Freight Revenues
Automotive up 12 percent
Chemicals up 12 percent
Coal up 12 percent
Industrial Products up 7 percent
Intermodal down 1 percent
Agricultural down 8 percent