UPDATE: Union Pacific Shares Rise On Upbeat Earnings

Shares of

rose more than 2.4% in pre-market trading after the company reported stronger-than-expected earnings for the fourth quarter. The Omaha, Nebraska-based company reported a quarterly profit of $1.4 billion, or $1.61 per share, versus a year-ago profit of $1.17 billion, or $1.27 per share. Its revenue climbed 9.3% to $6.15 billion. However, analysts were expecting a profit of $1.51 per share on revenue of $6.1 billion. Business volumes rose 6%. Revenue from agricultural products gained 9%, while industrial products revenue gained 15%, Intermodal volume surged 11%. Average diesel fuel prices shrank 14% in the quarter. Union Pacific repurchased more than 7.7 million shares in the quarter at an average share price of $113.77. "Union Pacific achieved record quarterly financial results, driven by strong volumes, solid core pricing and productivity gains," said Jack Koraleski, Union Pacific chief executive officer. "Robust volumes challenged our network for much of the year, and we remained focused on adding the necessary resources to safely improve service. We are encouraged with the progress we are making." Union Pacific shares climbed 2.45% to $117.20 in pre-market trading.