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UNION PACIFIC CORPORATION ACHIEVED RECORD THIRD-QUARTER EARNINGS OF $185 MILLION

 UNION PACIFIC CORPORATION ACHIEVED RECORD
 THIRD-QUARTER EARNINGS OF $185 MILLION
 BETHLEHEM, Pa., Oct. 21 /PRNewswire/ -- Union Pacific Corporation (NYSE: UNP) achieved record third-quarter earnings of $185 million.
 Last year, because of a $575 million after-tax special charge, the company recorded a loss of $406 million. Excluding the charge, year- over-year earnings would have been up 9 percent. Performance this quarter was strong in both the transportation and energy segments, with all four operating companies reporting gains over last year. Earnings per share were 91 cents compared to a loss of $2.01 last year. Excluding the special charge last year, earnings per share would have been 84 cents.
 Union Pacific Railroad increased its earnings to $185 million. This compares to a loss of $326 million last year. Excluding the charge, earnings would have been up 11 percent from $166 million. Carloadings increased 3 percent to a record for any quarter, led by strong gains in autos, up 7 percent; intermodal traffic, up 5 percent; grain and forest products, both up 3 percent; and metals and minerals, up 13 percent. Although coal was down 4 percent, this represents an encouraging improvement over the sluggish first half of the year. Continued productivity gains helped the Railroad to further reduce its operating ratio, from 78.7 (excluding the charge) in the third quarter last year to a record 77.0 in 1992.
 Union Pacific Resources had third-quarter earnings of $53 million. Last year's earnings were $10 million. Excluding the 1991 charge, earnings would have been up 15 percent from $46 million. This year's results included $16 million of after-tax costs associated with a workforce reduction. UPRC benefited from solid increases in both volume and price. Total sales volumes were up 15 percent over last year, with natural gas and crude oil up 25 and 17 percent, respectively. Plant liquids were down about 7 percent. Average natural gas prices for the quarter rose 26 percent compared to 1991. Plant liquid prices were up 11 percent, while crude prices were approximately 3 percent lower.
 Overnite Transportation reported record earnings of $18 million, excluding goodwill of $5 million. This compares to a 1991 loss of $1 million. Excluding the 1991 charge, earnings would have been $16 million (excluding $5 million of goodwill). In the third quarter this year the company's tonnage increased 6 percent, on the strength of its less-than-truckload shipments, with prices up 3 percent despite the highly competitive environment. USPCI had earnings of $3 million, excluding goodwill of $2 million.
 In the first nine months, Union Pacific Corporation reported earnings of $536 million, or $2.63 per share. Last year, including the special charge, the company recorded a loss of $120 million. Excluding the charge, earnings would have been up 18 percent from $455 million. Consolidated and subsidiary income statements follows.
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 STATEMENT OF CONSOLIDATED INCOME (LOSS)
 (Unaudited; dollars in millions except per-share amounts)
 Percent Percent
 Periods ended Third quarter Increase/ Nine months Increase/
 Sept. 30 1992 1991 (Decrease) 1992 1991 (Decrease)
 Operating revs. $1,851 $1,743 6 $5,378 $5,228 3
 Operating expenses
 (excluding
 special charge) 1,479 1,401 6 4,323 4,256 2
 Special charge --- 870 F -- 870 F
 Operating
 income (loss) 372 (528) F 1,055 102 F
 Other income-net 26 28 (7) 83 73 14
 Interest expense (90) (98) (8) (268) (294) (9)
 Corporate expense (23) (11) U (55) (54) 2
 Income (loss) before
 federal inc. taxes 285 (609) F 815 (173) F
 Federal inc. taxes (100) 203 U (279) 53 U
 Net income (loss) 185 (406) F 536 (120) F
 Earnings (loss)
 per share $0.91 $(2.01) F $2.63 $(0.59) F
 Average shares
 outstanding (MM) N/A N/A -- 203.8 201.6 1
 Shares outstanding
 at Sept. 30 (MM) 203.3 202.3 -- 203.3 202.3 --
 Note: In the third quarter of 1991 Union Pacific Corporation recorded a special charge of $870 million before tax ($575 million after tax) related to operational restructurings, principally at Union Pacific Railroad. Excluding this special charge, net income was $169 million ($.84 per share) and $455 million ($2.26 per share) for the three and nine months ended Sept. 30, 1991, respectively.
 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES
 Schedule of Consolidated Net Income (Loss) by Operating Unit
 (Unaudited; dollars in millions except per-share amounts)
 Periods ended Third quarter Pct. Nine months Pct.
 Sept. 30 1992 1991 Chg. 1992 1991 Chg.
 INCLUDING SPECIAL CHARGE:
 Union Pacific Railroad $185 ($326) F $479 ($53) F
 Union Pacific Resources 53 10 F 208 127 64
 Overnite Transportation 18 (1) F 47 21 F
 USPCI 3 (15) F 6 (13) F
 Corporate Services (74) (74) -- (204) (202) 1
 Net income (loss) 185 (406) F 536 (120) F
 Earnings (loss) per
 share $0.91 ($2.01) F $2.63 ($0.59) F
 EXCLUDING SPECIAL CHARGE:
 Union Pacific Railroad $185 $166 11 $479 $439 9
 Union Pacific Resources 53 46 15 208 163 28
 Overnite Transportation 18 16 13 47 38 24
 USPCI 3 2 50 6 4 50
 Corporate Services (74) (61) 21 (204) (189) 8
 Net income (excluding
 special charge) 185 169 9 536 455 18
 Earnings per share
 (excluding
 special charge) $0.91 $0.84 8 $2.63 $2.26 16
 (F) Favorable variance.
 (U) Unfavorable variance.
 /delval/
 -0- 10/21/92
 /CONTACT: Harvey S. Turner of Union Pacific, 215-861-3388/
 (UNP) CO: Union Pacific Corporation ST: Pennsylvania IN: TRN SU: ERN


LJ-MP -- PH012 -- 2775 10/21/92 10:23 EDT
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Date:Oct 21, 1992
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