Union Pacific reported 2017 first-quarter net income of $1.1 billion, or a record $1.32 per share, on operating income of $1.8 billion.
Net income was $1 billion, or $1.16 per share, in the first quarter of 2016.
The Omaha-based railroad’s operating ratio was flat at 65.1%.
"This is a very solid start to the year, especially given the weather challenges we encountered on the Western part of our network earlier in the quarter," said Lance Fritz, Union Pacific chairman, president and chief executive.
First-quarter operating revenue was $5.1 billion, up 6% on-year. Total revenue carloads increased 2% as volume gains in coal, agricultural products and industrial products more than offset declines in chemicals and automotive. Intermodal volume was flat from the previous-year quarter as increases in international shipments offset a drop in domestic intermodal.
Quarterly freight revenue improved 6 percent compared to the first quarter 2016, as volume growth, increased fuel surcharge revenue, core pricing gains and positive mix all contributed to the increase.
Per-gallon average fuel was 40% higher from a year ago, and negatively impacted the operating ratio by about 1.3 points.
The company repurchased 7.5 million shares in the first quarter 2017 at an aggregate cost of $802 million.
Among commodities gainers: coal, 25%; industrial products 9%; agricultural products 7%; intermodal 3%, and chemicals, 1%. Automotive volumes declined by 1%.
"With a solid first quarter performance behind us, we will continue to press ahead with our volume, pricing, and productivity initiatives through the remainder of the year," Fritz said. "Our six-track value strategy will keep us intensely focused on effectively leveraging volume growth, while providing our customers an excellent experience and our shareholders a solid return on investment."