Union Pacific Profit Rises 47% on Price Hikes

Union Pacific Corp. said Thursday that second-quarter net income rose 47%, the first quarterly increase since 2003, because of record price increases.

Net income increased to $233 million, or 88 cents a share, from $158 million, or 60 cents, a year earlier, the company said. That topped the average estimate of 77 cents among analysts surveyed by Thomson First Call. Sales grew 10% to $3.34 billion, including price increases that averaged 9% overall per shipment and 16% on agricultural products including grain and beer.

Union Pacific, which has struggled with delays and higher fuel costs in recent years, forecast an increase in third-quarter profit of as much as 27%. Earnings growth may be tempered by continued delays amid record demand, as trains slowed to 21.2 miles per hour in the second quarter from 21.3 mph a year ago.

Shares of Union Pacific rose $2.06, or 3.1%, to $67.99.