Union Pacific Reports Loss, Cites Restructuring Charge

Union Pacific reported a $460-million loss for 1986, the result of an after-tax charge of $945 million stemming from a restructuring of the New York-based company.

Before the special charge, earnings were $485 million, compared to net income of $501 million in 1985. Revenue declined to $6.7 billion from $7.9 billion the year before.

For the fourth quarter, Union Pacific posted net income of $129 million on revenue of $1.6 billion, down from a profit of $135 million on revenue of $2.1 billion in the year-earlier period.

“We expect to achieve a significant increase in net income this year, stemming primarily from the ongoing effects of our cost-reduction and restructuring programs,” William S. Cook, chairman and chief executive, said in a news release.

He added that the company’s Champlin Petroleum unit’s operating structure and costs have been brought into line with lower energy prices and that net income from Rocky Mountain Energy “should be up modestly.”