U.S. railroad operator Union Pacific's quarterly profit jumps 59%

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The company’s net income for the second quarter, that ended on June 30, rose to $1.798 billion from $1.13 billion a year ago.

U.S. railroad companies have benefited from a pickup in economic activity across North America as COVID-19 restrictions ease, with CSX Corp (NASDAQ:CSX) and Kansas City Southern (NYSE:KSU) also reporting higher revenue.

Union Pacific, the largest U.S. railroad operator by market value, also said its second-quarter volumes increased 22%.

The company’s revenue rose 29.7% to $5.504 billion from $4.24 billion a year ago, while operating ratio — a key profitability metric — improved to 55.1% from 61%.