Union Pacific collected $91.1 million more in fuel surcharges than it spent on fuel in the second quarter, according to a filing with the Surface Transportation Board cited by Reuters. The railroad had previously said the difference added $0.14 per share to second-quarter earnings, or about $83.2 million based on shares outstanding. Fuel surcharges are added to freight bills when fuel prices rise and are generally presented as cost-recovery tools, but timing and negotiated contract terms can make collections diverge from a railroad's actual fuel bill. The gap is particularly notable for railroads because they disclose both fuel costs and surcharge revenue to regulators, giving an unusually clear view of whether the charges merely recover expenses or add to profit margins. Union Pacific is also seeking regulatory approval for an $85 billion acquisition of Norfolk Southern to create the first true railroad operator spanning the continental U.S.
Union Pacific CorporationFuel surcharges exceeded fuel costs by $91.1M, adding $0.14 per share to Q2 earnings.
Norfolk Southern CorporationMentioned as acquisition target; regulatory approval pending, impact unclear.
