Omaha, Neb. • Union Pacific reported a 13 percent jump in fourth-quarter profit Thursday as strong grain, automotive and industrial shipments offset a 10 percent drop in loads of coal.
Shares rose more than 3 percent at the open of trading.
The Omaha, Neb., railroad earned $1.2 billion net income, or $2.55 per share, in the last three months of 2013. That's up from last year's $1 billion net income, or $2.19 per share.
Revenue improved 7 percent to $5.63 billion as the railroad increased rates 3.5 percent and volume grew 2 percent overall.
Edward Jones analyst Logan Purk said the results show that Union Pacific has more pricing power than other railroads because it has more long-term contracts coming up for renewal.