For the period ended September 30, the company recorded net income of $US1 billion, up from $904 million during the third quarter of 2011.

Quarterly operating revenue rose 5% to $5.3 billion from $5.1 billion during the same period.

Business volumes were down slightly compared to 2011, but volume improvements in chemicals, automotive and intermodal were able to offset the declines in shipments of coal, agricultural products and industrial products.

UP’s chemicals sector was the best revenue performer, up 17%, while coal was the worst, down 5% year-on-year.

Overall, freight revenue for the period was up 4%, driven primarily by core pricing gains.

"Despite a 12% decline in coal volumes and significantly weaker steel and scrap metal markets, we generated best-ever financial results across the board," chief executive officer Jack Koraleski said.

“We achieved solid core pricing gains, managed our network efficiently and delivered on the benefits of our diverse franchise with growth in other markets.”

Looking ahead, Koraleski said that the political and financial challenges both in the US and abroad had made the next several months uncertain.

“In this environment, we'll continue to be agile as we were in the third quarter. We'll adapt to changing market conditions and leverage our diverse franchise to provide excellent customer service and generate strong returns for our shareholders,” he said.

UP’s operation area encompasses 23 states in the western two-thirds of the US.

Burlington Northern Santa Fe and UP are the two largest shippers for the western coalfields.