OMAHA, Neb. -- Union Pacific Corporation today reported net income for the first quarter of $181 million, or $.72 per diluted share. This compares to net income of $185 million, or $.74 per diluted share, in the first quarter of 2000.

"We are pleased with our first quarter performance, given the difficult economic environment," said Richard K. Davidson, chairman and chief executive officer. "Looking forward, we are confident in our business strategy and competitive position, although economic conditions continue to cause near-term uncertainty," he continued. "As we manage through the current environment, our unparalleled franchise and diversity of commodity mix enable us to maintain a very positive long-term outlook for the company and its shareholders."

For the first quarter, Union Pacific Corporation, excluding Overnite, reported operating income of $430 million compared to $451 million for the same period in 2000. The Railroad's commodity revenue increased 1 percent to $2.6 billion for the quarter on the strength of its diverse traffic base. Energy revenue was up 12 percent to a record $593 million. The Agricultural Products and Intermodal business groups also had solid revenue growth in the first quarter, showing gains of 6 and 2 percent, respectively. The economically sensitive commodities of Automotive, Industrial Products and Chemicals all declined from 2000 levels by about 5 percent. The operating ratio was up .9 percentage points to 83.8 percent from 82.9 percent in first quarter 2000. Rising fuel costs added $35 million in operating expenses, or 1.3 percentage points on the ratio, and were partially offset by productivity improvements.

Overnite Transportation reported an improved first quarter operating income of $9 million compared to $1 million in the first quarter of 2000, as operating efficiencies took hold and strike-related costs decreased significantly. Revenue increased 4 percent to $280 million from $269 million, while Overnite's operating ratio fell 2.9 percentage points to 96.9 percent.

Union Pacific Corporation is one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two-thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical-producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six gateways to Mexico, Union Pacific has the premier rail franchise in North America. The Corporation also owns Overnite Transportation, a nationwide less-than-truckload carrier, and Fenix, a group of affiliated technology companies.