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Union Pacific Corp. rebounded from a disappointing first quarter by posting strong second-quarter financial results. Today, the Class I reported record second-quarter operating revenue of $3.3 billion, a 10 percent increase compared with second-quarter 2004. Quarterly net income of $233 million rose 47 percent and operating income of $359 million increased 30 percent — the railroad’s first year-over-year operating income growth in six quarters.

In addition, average terminal dwell time fell 11 percent to 27.4 hours and cars on line dropped 2 percent to 318,434 cars during the quarter. And UP’s quarterly operating ratio of 86.0 improved 2.1 points compared with second-quarter 2004. The lone bad news: Quarterly operating expenses rose 8 percent to $2.87 billion.

During the year’s first half, operating revenue rose 10 percent to $6.5 billion, operating income increased 16 percent to $781 million, net income went up 12 percent to $361 million and UP’s operating ratio improved 0.6 points to 88.0 compared with first-half 2004. Operating expenses rose 9 percent to $5.7 billion.

“Today, our company has more business demand than we are able to fulfill — a situation that I haven't seen during my 45-year career,” said UP Chairman and Chief Executive Officer Dick Davidson in a prepared statement. “We are encouraged by the changes we see in our day-to-day operations.”