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Union Pacific Corp. had a banner second quarter: Net income of $304 million rose 25 percent compared with second-quarter 2001's $243 million and UP's operating income of $602 million increased 22 percent compared with last year's $494 million, according to financial data released July 18.


The railroad also recorded its best overall operating revenue, income and ratio, and most total carloadings and revenue ton miles.


"This was an outstanding quarter for Union Pacific," said Dick Davidson, UP chairman and chief executive officer, in a prepared statement. "The railroad leveraged increased revenue, employee productivity gains and lower fuel prices into records for operating income, net income and operating ratio."


UP's quarterly operating ratio of 79.3 improved three percentage points compared with 82.3 last year; the railroad's year-to-date operating ratio of 80.4 improved more than two points compared with 83.1 during a similar 2001 period.


Meanwhile, operating revenue of $3.1 billion rose 5 percent compared with last year's $2.9 billion, but operating expenses of $2.55 billion increased 2 percent compared with $2.50 billion in 2001.


By commodity, UP posted revenue growth in five of six groups: intermodal rose 11 percent; automotive, 8 percent; chemicals, 4 percent; agricultural products, 3 percent; and industrial products, 2 percent.


"While this highlights the strength of our diverse commodity mix and competitive product offerings, it's also a signal to me that there are
rays of light coming through the clouds that have been over the American economy for months," said Davidson.