Freight Railroads Report Higher Revenue, Profits

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ix North American freight railroads reported higher profits and revenue for the third quarter.

Union Pacific Corp. Thursday reported it earned $369 million or $1.38 per share, compared with $202 million or 77 cents a year earlier. UP said that excluding an after-tax item, its income would have been $251 or 94 cents a share. Operating revenue rose 13% to $3.5 billion over the same quarter last year.

Burlington Northern Santa Fe Corp., parent of U.S. rail line BNSF Railway Co., reported a third-quarter profit of $414 million or $1.09 a share, compared with $2 million or 1 cent a year earlier. The previous year’s results would have been $290 million or 77 cents without environmental cleanup costs. Freight revenue rose 18% to a quarterly record $3.22 billion.

CSX Corp. said its net income rose to $164 million or 72 cents a share, from $123 million or 57 cents a share a year earlier. Sales rose 9% to $2.1 billion and the company raised its quarterly dividend to 13 cents a share from 10 cents.

Norfolk Southern Corp.’s third-quarter profit rose to $301 million or 73 cents a share, from $288 million or 72 cents a year earlier. Revenue jumped 16% to $2.2 billion on higher demand for coal and increased fuel surcharges. Revenue from general merchandise shipments, the company’s largest business, rose 13% to $1.14 billion.

Canadian National Railway Co.’s third-quarter earnings rose to about $352 million or $1.26 a share, from $296 million or $1.02 a year earlier. Sales rose 5.9% to $1.56 billion. The railroad raised its prices 5% amid increased freight demand, Bloomberg reported.

Canadian Pacific Railway Ltd., Canada’s No. 2 railroad, said its third-quarter profit rose to $174 million or $1.09 a share, from $151.1 million or 95 cents a year earlier. Revenue rose 12% to $941 million.