Union Pacific earns $3.49 a share in the third quarter as carloads rise 6 percent and revenue climbs 15 percent

Six percent more carloads. That was the volume Union Pacific handled in the third quarter against a year earlier, according to results the Omaha railroad filed with the SEC on Thursday.

Operating revenue rose 15 percent to $7.2bn, which the company attributes to higher fuel surcharges together with volume, core pricing and other revenue, partly offset by business mix. Freight revenue excluding the surcharge grew 6 percent. Net income was $2.1bn, or $3.49 a diluted share, against $1.8bn and $3.01. On an adjusted basis earnings came to $3.53 a share, up 15 percent.

Fuel cut the other way on costs. The reported operating ratio, the share of revenue consumed by operating expenses, improved only 10 basis points to 59.1 percent, and the company says higher fuel prices added 140 basis points to it.

The railroad affirmed its outlook for high-single-digit growth in reported earnings per share this year and set its capital plan at $3.5bn. Chief executive Jim Vena said the company looks forward to "the upcoming steps" of the Surface Transportation Board review of its proposed acquisition of Norfolk Southern.