Union Pacific Announces 2nd Quarter Profits

OMAHA - Union Pacific railroad's second-quarter profit grew 10 percent despite the challenges of severe Midwest flooding and higher fuel costs. The railroad company, based in Omaha, said Thursday that it generated $785 million net income, or $1.59 per share, in the quarter. That's up from $711 million net income, or $1.40 per share, last year. Union Pacific incurred flood-related expenses of about $14 million in the quarter and lost about $20 million of coal revenue because of flooding. Those things cost the railroad about 4 cents per share of profit. UP says revenue grew 16 percent to $4.86 billion over last year's $4.18 billion. But Union Pacific still topped Wall Street expectations. Analysts surveyed by FactSet expected UP to report net income of $1.58 per share on revenue of $4.74 billion.