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Oct 26 (Reuters) - Union Pacific Corp reported a better-than-expected quarterly profit on Thursday, driven by higher freight revenue as it transported more industrial products.
The No. 1 U.S. railroad said third-quarter net income rose to $1.19 billion, or $1.50 per share, from $1.13 billion or $1.36 per share, a year earlier.
Freight revenue jumped 4 percent in the third quarter compared to the year-ago period, driven largely by industrial products freight.
Total operating revenue rose to $5.41 billion in the third quarter ended Sept. 30 from $5.17 billion.
Analysts on average expected earnings of $1.49 per share, on revenue of $5.3 billion according to Thomson Reuters I/B/E/S.
Union Pacific reported a quarterly operating ratio - a measure of operating expenses as a percentage of revenue - of 62.8 percent, a rise of 0.7 points compared to the same period last year.
Higher fuel prices hurt the operating ratio by 0.3 points, the company said in a statement.
The lower the operating ratio, the more efficiently the railroad is running.
Union Pacific shares rose 1 percent to $111.44 before the bell. (Reporting by Rachit Vats in Bengaluru, and Eric Johnson in Seattle; Editing by Supriya Kurane)