Edit post

Edit your reply below.

Post Body
Enter your post below.
Sorry to always be the bearer of bad news, but this is a fine example of corporate welfare and a good reason not to waste hard earned profits on something silly like advertising. I sincerely hope this doesn’t offend the hard core railroaders, I’m sure in the case of UP, the unions ensured that you received your fair share of the $378 million in net income through big fat bonus checks. Something is wrong with the following picture: UP posts strong numbers in face of soft 2002 economy Union Pacific Corporation reported revenue for the fourth quarter ending Dec. 31 of $3.17 billion, up 5 percent from the year-ago quarter. Net income was $378 million up 37 percent. Revenue for the fiscal year ended Dec. 31 was $12.5 billion, up 4 percent, while net income grew 39 percent to $1.34 billion from the year-ago period. Quarterly and annual results include the company’s Overnite motor cargo division. Operating revenue from UP’s rail operations was $2.83 billion, up 4 percent, and operating income rose 1 percent to $562 million. Operating ratio was 80.1 percent compared with 79.7 percent. Revenue ton-miles increased 2 percent to 131.2 billion. Rail operation’s revenue for 2002 grew 3 percent to $11.16 billion, and operating income jumped 12 percent to $2.25 billion. Operating ratio declined to 79.8 percent from 81.4 percent. Revenue ton-miles increased 3 percent to 518.7 billion. UP said quarterly results were driven by strong revenue growth of 10 percent in the automotive segment, agricultural (8 percent), and industrial products (7 percent). Chemicals revenue grew 3 percent, while intermodal and energy revenues declined 2 percent and 3 percent respectively. Despite strong results for 2002, UP plans to cut up to 1,000 jobs, or 2 percent of its work force, this year. About 300 people will be laid off by March and another 700 more positions will not be filled this year as people leave or retire. Union Pacific employs about 48,000 people. Union Pacific is also moving forward with converting yard switchers to remote control. It will take into 2004 to fully implement the technology system wide, UP said. Report urges more money for rail infrastructure The federal government needs to step up funding for the nation’s freight rail network, according to New York State Transportation Commissioner Joseph Boardman. A report released by the American Association of State Highway and Transportation Officials says that freight rail traffic will increase by 57 percent between now and 2020. But railroads will fall up to $2 billion short each year on capital improvements needed to meet capacity demands, said Boardman, chairman of the AASHTO. State governments have begun to contribute to upgrades. New York is sharing in a $27 million initiative to improve the freight rail system. Federal investment will allow the economy to expand, relieve highway congestion, and control air pollution, Boardman said in a story published in The Business Review (Albany, N.Y.) The AASHTO also says states and the federal government will need to spend $17 billion over the next six years to cover the nation's key inter-city rail corridor needs. Up to $42.9 billion will be needed on top of that amount to meet rail needs for the next 20 years. In 2002 the states spent $133 million underwriting rail service on critical corridors, the report said. This was equivalent to 10 percent of Amtrak's revenues.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag