OREANDA-NEWS. Union Pacific Corporation (NYSE: UNP) today reported 2014 third quarter net income of USD 1.4 billion, or USD 1.53 per diluted share, compared to USD 1.15 billion, or USD 1.24 per diluted share, in the third quarter 2013.

All-Time Quarterly Records

Diluted earnings per share of USD 1.53 improved 23 percent.

Operating revenues totaled USD 6.2 billion, up 11 percent.

Operating income totaled USD 2.3 billion, up 19 percent.

Operating ratio of 62.3 percent improved 2.5 points.

"Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong volume growth," said Jack Koraleski, Union Pacific chief executive officer. "As we continue to focus on improving our service, we are encouraged by the accomplishments we achieved in the quarter, including a two and a half point improvement in our Operating Ratio to a record 62.3 percent."

Third Quarter Summary

Operating revenue increased 11 percent in the third quarter 2014 to USD 6.2 billion, versUSD 5.6 billion in the third quarter 2013. Third quarter business volumes, as measured by total revenue carloads, increased 7 percent compared to 2013. Volume increased in agricultural products, industrial products, intermodal, automotive and chemicals. Coal volumes were flat versus 2013. In addition:

Quarterly freight revenue increased 11 percent compared to the third quarter 2013, driven by volume growth and core pricing gains.

Union Pacific's operating ratio of 62.3 percent was an all-time quarterly record, 2.5 points better than the third quarter 2013 and 1.2 points better than the previous all-time quarterly record set in the second quarter 2014.

The average quarterly diesel fuel price of USD 3.01 per gallon in the third quarter 2014 was down 5 percent compared to the third quarter 2013.

Quarterly train speed, as reported to the Association of American Railroads, was 23.8 mph, 10 percent slower than the third quarter 2013.

The Company repurchased more than 8.3 million shares in the third quarter 2014 at an average share price of USD 102.54 and an aggregate cost of USD 856 million.