Union Pacific 2001 Annual Report Download - page 45

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Rail Segment
Net Income – Rail operations reported record net income of $926 million in 2000 compared to net income of $854
million in 1999. The increase in income resulted primarily from higher commodity and other revenue, improved
operations, productivity gains and lower interest expense, partially offset by significantly higher fuel prices and volume-
related costs. Excluding the work force reduction charge, net income was $998 million in 2000.
Operating Revenues – Rail operating revenues increased $591 million (6%) over 1999 to a record $10.7 billion. Revenue
carloads increased 4% over 1999 with gains in five of the six commodity groups. Other revenue gains were the result of
higher subsidiary revenues and increased accessorial services.
The following tables summarize the year-over-year changes in rail commodity revenue, revenue carloads and average
revenue per car by commodity type:
Commodity Revenue in Millions of Dollars 2000 1999 Change
Agricultural ............................................................................................. $ 1,400 $1,419 (1)%
Automotive ............................................................................................. 1,182 1,048 13
Chemicals................................................................................................ 1,640 1,595 3
Energy...................................................................................................... 2,154 2,168 (1)
Industrial Products ................................................................................. 1,985 1,896 5
Intermodal .............................................................................................. 1,909 1,725 11
Total ........................................................................................................ $10,270 $9,851 4 %
Revenue Carloads in Thousands 2000 1999 Change
Agricultural ............................................................................................. 873 911 (4)%
Automotive ............................................................................................. 815 707 15
Chemicals................................................................................................ 936 930 1
Energy...................................................................................................... 1,930 1,872 3
Industrial Products................................................................................. 1,431 1,398 2
Intermodal .............................................................................................. 2,916 2,738 7
Total ........................................................................................................ 8,901 8,556 4 %
Average Revenue Per Car 2000 1999 Change
Agricultural ............................................................................................. $ 1,604 $1,558 3 %
Automotive ............................................................................................. 1,450 1,481 (2)
Chemicals................................................................................................ 1,752 1,715 2
Energy...................................................................................................... 1,116 1,158 (4)
Industrial Products ................................................................................. 1,387 1,357 2
Intermodal .............................................................................................. 655 630 4
Total ........................................................................................................ $ 1,154 $1,151 - %
Agricultural – Revenue declined 1%, as a 4% decrease in carloads more than offset a 3% increase in average revenue per
car. Carloads decreased primarily due to reduced export demand for wheat and corn and a lack of producer selling in
anticipation of higher prices. Revenue increased for fresh fruits and vegetables primarily as a result of new express train
service from the Pacific Northwest and northern California to eastern markets. Beverage revenue increased due to new
wine shipments out of California and higher domestic beer carloads. Average revenue per car increased primarily due
to an increase in longer haul traffic, particularly domestic corn shuttle shipments to California.
Automotive – Revenue increased 13% as a result of a 15% increase in carloads. Both revenue and carload totals were all-
time records, resulting from strong demand for finished vehicles and parts, market share gains and improved rail service.
Business volume with Mexico was particularly strong due to increased vehicle production levels and more reliable and
expanded rail service. New service offerings facilitated the conversion of automotive parts shipments from truck to the
Railroad. Increased container shipments of automotive parts, rather than boxcar shipments, caused average revenue per
car to decrease slightly.