OMAHA -- The rail industry struggled during 2001 but the stock of
Omaha-based Union Pacific Corp. rose at year's end and railroads
were looking for better days this year, the Omaha World-Herald
reports.
Railroads were hit early in 2001 as the economy
began to cool. As the demand to ship goods declined, the companies
responded by cutting jobs, capital projects and other budget items.
In addition, diesel fuel costs rose, driving up operating costs.
The railroads' stocks took a hit after Sept. 11 as part of
general market weakness.
The industry is poised to do better
in 2002. Union Pacific Corp., whose rail subsidiary is the nation's
largest railroad, as well as rival Fort Worth, Texas-based
Burlington Northern Santa Fe Corp., which has the second-largest
railroad, are trying to take market share away from trucking
companies.
Both railroads are eyeing alliances and
partnerships with Eastern or Canadian railroads to expand shipping
service outside their networks, which cover the western two-thirds
of the United States. And both railroads are counting on coal, a
profitable shipping commodity.
Union Pacific Corp.'s stock
rose about $6, or 12 percent, from Jan. 2 to the end of the year,
when it traded higher than $56.
Burlington Northern Santa Fe
Corp.'s stock ended the year about where it began, above $28 a
share. The company has reported lowered earnings for the past four
quarters, due to rising costs, lost contracts and the slowed
economy.
Union Pacific and Burlington Northern's
fourth-quarter earnings come out later this month.