Union Pacific has reported a net income of $7bn for the full year ended 31 December 2022, a 7% increase from $6.52bn a year ago.  

The US-based freight-hauling railroad’s earnings per diluted share were $11.21 in 2022, as against $9.95 in 2021.

Operating income rose 6% year-on-year to $9.9m.

Benefitting from higher fuel surcharge revenue, core pricing gains, and volume growth, the company’s operating revenue grew 14% to $24.9bn.

The firm’s business volumes, as measured by total revenue carloads, rose 2%, while its 60.1% reported operating ratio dropped 290 basis points.

In the fourth quarter of 2022, the railroad’s net income stood at $1.64bn. This marked a 4% decrease from $1.71bn in the same period of 2021.

Earnings per diluted share were $2.67 in the October-December 2022 quarter, versus $2.66 in the prior year.

Operating income dipped 1% to $2.41bn from $2.44bn over this period, while operating revenue increased 8% to $6.2bn.

When measured by total revenue carloads, business volumes grew 1%. Its 61.0% operating ratio slid 360 basis points.

Union Pacific chairman, president, and CEO Lance Fritz said: “In the fourth quarter, we grew carloads as we continued to face challenges hiring craft professionals in critical locations and experienced the impact of extreme winter weather on our network in December.

“As a result, revenue growth was more than offset by elevated operating expenses from operational inefficiencies and a higher inflationary environment.”