Union Pacific Boosts First-Quarter Earnings Outlook

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estern freight railroad Union Pacific Corp. late Tuesday raised its first-quarter earnings projection to a range of $1 to $1.10 per share, from its previous 80- to 90-cent projection.

Last year, UP reported first-quarter earnings of 48 cents a share, which included the $34 million impact of a big West Coast storm.

The largest U.S. freight railroad by revenue said that stronger commodity revenue and a greater-than-expected operating margin were the reasons for the upgrade.

First quarter 2006 carload volume is expected to increase 4% versus an original outlook of 3% growth, the rail line said. Commodity revenue should grow about 17% versus an earlier 15% projection.

The revenue upside is driven by strong demand for intermodal, industrial products and agricultural products, somewhat offset by lower-than-anticipated coal volumes, UP said.

First-quarter operations also benefited from mild winter weather, the railroad said.