Union Pacific Profit Rises 22%; Santa Fe Soars 53%

Union Pacific Corp. said it posted a record first-quarter profit of $122 million, up 22% from a year earlier, while Santa Fe Southern Pacific Corp. said its profit rose 53% to $46 million.

Union Pacific said its operating income climbed 25% to $272 million in the latest quarter as rail income continued its strong advance and energy earnings rebounded.

It said Union Pacific Railroad reported its third record quarter in a row, posting an earnings gain of 34% to $110 million, even though revenue was down slightly at $949 million. It said costs were reduced by 6%, partly from a 13% reduction in its work force during the past year and lower fuel costs.

The New York company said its Champlin Petroleum subsidiary earned $28 million in the quarter, up from $5 million in 1986 when refining operations were in the red and energy prices began plunged.

Company revenue fell 28.6% to $1.3 billion from the same period last year.

Santa Fe, the parent company of both the Santa Fe and Southern Pacific railroads, said the largest factor in its improved earnings was the reversal within Southern Pacific. The railroad earned $6 million in the quarter, compared to a loss of $60 million in 1986.

The company is still seeking permission from the Interstate Commerce Commission to merge the two railroads.

Santa Fe Railway’s operating income dropped to $19 million from $32 million last year.

Petroleum production and marketing operations showed a profit of $13.5 million, down $5.3 million from the like period in 1986.