Union Pacific’s 4Q Earnings Decline

Union Pacific Corp. said Thursday its fourth-quarter profit fell 17% from a year ago as freight demand declined.

Net income fell to $551 million, or $1.08 a share, from $661 million, or $1.31, a year ago, the freight rail line said in statement.

Slightly stronger fourth quarter demand led to an increase over soft prior year volume levels in three of its six business groups: intermodal, agricultural and automotive.

Operating revenue fell to $3.8 billion, from $4.3 billion a year ago, UP said.

For the full year 2009, UP’s net income fell to $1.9 billion, or $3.75 per share, from $2.3 billion, or $4.54.  Operating revenue fell to $14.1 billion from $18 billion and operating income fell 17% to $3.4 billion.

Full-year business volumes fell 16% versus 2008, while freight revenue fell 22% to $13.4 billion in 2009 as a result of lower volumes and a $1.7 billion reduction in fuel surcharge revenue versus 2008.