Union Pacific Back In Black
January 20, 2000
Railroad giant Union Pacific Corp. was back in the black in the fourth quarter, despite a poor performance from its trucking subsidiary Overnite Transportation.
The company had fourth-quarter net income of $242 million, compared to a loss of $189 million in the fourth quarter of the previous year, according to the Wall Street Journal. That included a charge of $285 million in goodwill for Overnite.
Analysts say Union Pacific is largely healed from complications with the 1997 and 1998 merger with Southern Pacific Rail Corp. and it continues to boost its efficiency and regain business lost to trucks and other railroads.
Overnite incurred higher expenses as it continues to deal with work interruptions from the Teamsters union. Fourth-quarter revenue of $259 million was flat, but Overnite's loss narrowed to $14 million from $16 million a year ago.