Rebounding rail and petroleum operations pushed third-quarter net income for Santa Fe Southern Pacific to $123.5 million, up sharply from the $12.4 million reported in the same period last year.
Third-quarter 1986 results included a $130.6-million pretax charge for "impairments of oil and gas properties," the Chicago company said. "Even without considering that charge, however, net income for the 1987 quarter was about 50% better than last year," Chief Executive Robert D. Krebs said.
Santa Fe Southern Pacific is in the process of selling the Southern Pacific railroad, which has been held in trust since the parents of the Santa Fe and the Southern Pacific merged in 1983. The Interstate Commerce Commission has refused to allow the company to merge the two subsidiary railroads.
For the nine months ended Sept. 30, Santa Fe Southern Pacific had net income of $259.8 million on revenue of $4 billion, compared to income of $123.9 million on revenue of $3.9 billion in the same period of 1986.
Operating income of the transportation group jumped to $126.7 million in the quarter from $88.5 million in third-quarter 1986.