Revenue rose in all of the company's businesses except coal, which fell as a mild winter and low natural gas prices sapped demand from utilities. Auto-related shipping revenue led with a 25 percent increase in the quarter.
The Omaha, Nebraska-based company said that net income rose to $1 billion, or $2.10 per share in the second quarter from $785 million, or $1.59 a share, a year before.
Operating revenue rose 7 percent to $5.2 billion, in line with estimates.
"Looking ahead to the second half of the year, the global economic outlook has become more uncertain and coal volumes remain a challenge," Chief Executive Jack Koraleski said in a statement.
The company's shares rose 1.3 percent to $120.10 in premarket trading, and are up about 13 percent so far this year.
Union Pacific is the third major U.S. railroad to report quarterly results, after CSX Corp and Kansas City Southern Corp on Tuesday.
Both smaller railroads said they did not expect significant increases in demand for coal shipments by utilities this year, but said the sector had passed the worst of its slump. (Reuters)
