=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/07/18/f= inancial1303EDT0151.DTL ---------------------------------------------------------------------- Thursday, July 18, 2002 (AP) Union Pacific reports double-digit increase in second-quarter earnings JOE RUFF, Associated Press Writer (07-18) 14:13 PDT OMAHA, Neb. (AP) -- Union Pacific Corp., the nation's largest railroad, reported a 25 percent profit increase for the second quarter, and its chief executive said the results could signal a turnaround for the nation's economy. Union Pacific said Thursday it earned $304 million, or $1.15 per share, = in the three months ended June 30, up from $243 million, or 95 cents a share, in the same period last year. Revenue rose to $3.15 billion from $3 billion a year ago. The company beat Wall Street estimates of $1.08 per share in a survey of analysts by Thomson Financial/First Call. Its railroad operations had 11 percent growth in earnings from hauling consumer goods like television sets and toys, 8 percent growth in automobiles, 4 percent growth in chemicals, 3 percent growth in agriculture and a 2 percent increase in industrial products. Coal hauling was the only commodity group that was down, at 1 percent, although the volume shipped and profit margins were up. The drop was due primarily to lower rates on some contracts, the company said. Dick Davidson, chairman and chief executive, said the results "signal to me that there are rays of light coming through the clouds that have been over the American economy for months." "We sort have a window into lots of other businesses because we haul the= ir goods," Davidson said. "We're part of the manufacturing process in that respect." Jeff Graff, an analyst at Victory Capital Management Inc. in Cleveland, Ohio, said the railroad's increased income in nearly all sectors was an encouraging sign for the nation's economy, particularly in the hauling of chemicals, which had been down. "The trends are definitely showing some improvement," Graff said. Union Pacific also benefits from its market share in the high quality co= al coming out of the Powder River basin in Wyoming, its connections to Mexico as U.S. companies take advantage of less expensive labor in that country and increasing populations in the West, Graff said. Union Pacific Railroad covers 23 states across the western two-thirds of the United States. The company has trucking operations under its Overnite Corp., which post= ed a 2 percent increase in second quarter operating income of $18.3 million, up from $18 million in the same period last year. For the first six months of the year, Union Pacific earned $526 million, or $2.01 a share, up from $424 million, or $1.67 a share, a year ago. Revenue for the six months rose to $6.12 billion from $5.94 billion a year ago. On the New York Stock Exchange, Union Pacific shares fell 40 cents a sha= re to close Thursday at $58.92. On the Net: Union Pacific Corp.: www.uprr.com =20 ---------------------------------------------------------------------- Copyright 2002 AP