HUTCHINSON, Kan. — Union Pacific battled higher fuel prices and inflation to post numbers similar to the same period last year.
The nation's largest railroad reported 2022 second quarter net income of $1.8 billion, or $2.93 per diluted share. This compares to 2021 second quarter net income of $1.8 billion, or $2.72 per diluted share.
“As anticipated, the Second Quarter was a tough one as we limited carloadings and increased expenses to recover network fluidity,” Lance Fritz, Union Pacific chairman, president, and chief executive officer said. “We also experienced record high fuel prices and increasing inflation, adding pressure to our total costs. Offsetting the cost pressures were higher fuel surcharge revenue, solid core pricing, a positive mix, and continued train size initiatives. The result was operating revenue and income growth. Our network fluidity improved through the quarter, and we are positioned to grow volumes in the back half of 2022 while continuing to improve our service product.”
Operating revenue totaled $6.3 billion driven mostly by an increase in fuel surcharges and operating income totaled $2.5 billion, an increase of 1%.
Car loadings fell by 2% from the previous year as the railroad held traffic in check due to rising costs and logistical issues. Total car loads for the quarter came in at 1.74 million compared with 1.78 million in 2021. Shipments fell for grain and ag shipments. Coal loadings actually increased by 3% which continues to reverse a trend of declining shipments.
UP operates about 25 trains per day through Reno County, mostly intermodal and grain shipments.
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