Union PacificNet profit for the second quarter of 2021 rose 59% from a year ago to $1.8 billion, amid a 30% increase in revenue.
Second quarter net income was $1.8 billion, or $2.72 per diluted share, compared to $1.1 billion, or $1.67 per diluted share, in the second quarter of 2020.
Operating revenue was $5.5 billion, up 30% from the second quarter of 2020. Revenue was higher across all UPWARDS’s (NYSE: UNP) segments as volumes improved from Q2 2020 and the start of the US COVID-19 pandemic
Meanwhile, operating expenses rose 17% in the quarter to $3 billion amid higher fuel costs and benefits and benefits expenses.
Operating income was nearly $2.5 billion, a 50% year-over-year gain. The operating ratio was 55.1% in the second quarter, compared to 61% in the same period a year ago. Investors sometimes use the operating ratio to measure a company’s financial health, with a lower OR implying improved health.
“The Union Pacific team leveraged volume growth, price increases and productivity to produce record quarterly results,” UP president and CEO Lance Fritz said in a press release. “In addition to our strong financial performance, we have also made progress towards our goal to reduce our carbon footprint, including a 3% improvement in our fuel economy.
“Importantly, these strong results have been achieved in a challenging environment as our rail network continues to be impacted by supply chain disruptions, particularly in the intermodal space. As we head into the second half of 2021, we will continue to work with our customers and the wider supply chain to increase fluidity and efficiently deal with strong freight demand,” said Fritz.
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