Railroad Profits Rise With Demand

Word Count: 581 | Companies Featured in This Article: Union Pacific, CSX, Norfolk Southern , Kansas City Southern If the U.S. economy is deteriorating, could someone please tell the railroad industry? Profits for several railroad companies are surging as they exercise their power to raise prices, in part because they remain a cheaper alternative to trucks and other less fuel-efficient modes of transportation. Union Pacific Corp., the largest U.S. freight railroad operator by revenue, reported a 19% jump in second-quarter net income, despite a 3% drop in carloads, a 54% jump in fuel costs and a variety of logistical issues associated with recent Midwest flooding. Last week, CSX Corp. also reported a 19% profit increase for the... [read full story]