Union Pacific Corp. said it posted a record first-quarter profit of $122 million, up 22% from a year earlier, while Santa Fe Southern Pacific Corp. said its profit rose 53% to $46 million.
Union Pacific said its operating income climbed 25% to $272 million in the latest quarter as rail income continued its strong advance and energy earnings rebounded.
It said Union Pacific Railroad reported its third record quarter in a row, posting an earnings gain of 34% to $110 million, even though revenue was down slightly at $949 million. It said costs were reduced by 6%, partly from a 13% reduction in its work force during the past year and lower fuel costs.
The New York company said its Champlin Petroleum subsidiary earned $28 million in the quarter, up from $5 million in 1986 when refining operations were in the red and energy prices began plunged.