union pacific records 15 % increase in earnings

Trains Magazine General Discussion
1

[:-^]even though economy has slowed from last year up has done good,thats good news fans!![:)]

2

The stock price is up around $120 a share, I wonder if it will split one of these days?

3

I don’t suppose they’d consider syphoning off some cash and refurbishing a Big Boy to act as another ambassador of their fine organization. It would cost perhaps $3-4M, 5 at most. [:P] operating costs would add, but…

4

My fingers are crossed that a split occurs[:)]

5

Yup, their earnings increased by 15%.

Now, by what percentage did their EXPENSES increase?

Earnings and profits are NOT the same thing. If you have to spend 97 cents of each new dollar to earn that dollar, your profit is 3% on the new income, and may very well REDUCE overall profitibility. (I can beat 3% by investing in short-term CDs at my local bank…)

Chuck (aka, the curmudgeon)

6

Any explanations?

7

I think in this case they are talking about net income, after expenses.

The second quarter operating ratio was 80.5 verses 81.7 for the second quarter of 2006.

Jeff

8

I wouldn’t expect that to happen. UP has a lot of better uses for the cash, including dividends.

9

? Are you sure you don’t have some terms mixed up? Revenue is usually the term for more money coming in. Earnings is usually used to denote profits.

10

Well, sure,…but…ya know…? I had tuh ask…

11

The UP is in the midst of a massive rebuilding project across the desert southwest to make their entire Sunset Route double-track, and are even going to be re-routing a lot of it, as well as planning a large switching yard at Picacho, Arizona, so a lot of this profit is going back into their physical plant.

12

At least they are over the bad case of indigestion they suffered from after gobbling up SP…

13

This has been mentioned time and time again in thread after thread on these trains.com forums. They could very easily refurbish a big boy but they won’t. Why? Because there is no place to run it.

14

Glad to see that there was a 15% increase in their stock. WHAT ABOUT A PAY RAISE OR CONTRACT FOR THE TRANSPORTATION WORKERS THAT MADE THAT POSSIBLE. ?? [sigh]