NEW YORK (Standard & Poor's) July 24, 2003--Union Pacific Corp. (UP; BBB/Positive/A-2) reported record quarterly revenues of $3.3 billion for the second-quarter of 2003. However, increased expenses resulted in relatively flat operating income. Standard & Poor's Ratings Services said that the announcement does not affect its ratings or outlook on the company. Railroad operating revenues for the quarter increased 3%, to $2.9 billion. The rail operating ratio (operating expenses, including depreciation, as a percentage of revenues) was 79.8% for the quarter, a modest deterioration from the 79.3% reported in the second quarter of 2002. Fuel surcharges contributed to revenue growth but did not offset a $54 million year-over-year increase in fuel costs. The Overnite trucking operations generated $372 million in
