Union Pacific's Earnings Rise on Higher Prices

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nion Pacific Corp. reported its second-quarter income rose 47%, its first quarterly increase since 2003, because of record price increases, Bloomberg reported.

UP earned $233 million or 88 cents a share, up from $158 million or 60 cents a year earlier.

Sales rose 10% to $3.34 billion, including price increases that averaged 9.1% per shipment, and 16.1% on agricultural shipments, Bloomberg reported.

Bloomberg reported in late June that UP, the largest U.S. freight railroad, had seen its revenue surge 10% on higher prices. (Click here for previous coverage.)

The railroad, which has struggled with delays in its system and with higher fuel prices, projected further earnings gains, with third-quarter profits to rise as much as 27%, Bloomberg said.

The rail line also raised its full-year revenue growth target to 9%, from as little as 5%.

The prices increases, which topped a record 7.6% gain in the first quarter, came as cargo rose 0.3%, trailing the industry’s average 2.5%, Bloomberg said.

UP’s earnings gains were limited in part by diesel fuel costs, Bloomberg reported.