Union Pacific Corp. on Thursday said its profit nearly quadrupled in the fourth quarter from results weighed down by a hefty charge a year ago.

The increase was a more modest 27 percent excluding the charge. Union Pacific earned $296 million, or $1.10 per share, for the quarter ended Dec. 31 from $79 million, or 30 cents, in the year-ago period.

In last year's fourth quarter, Union Pacific logged a charge of $154 million, or 58 cents per share, related to unasserted asbestos claims. When the asbestos charge is excluded, net income grew 27 percent.

Revenue totaled $3.62 billion, up from $3.22 billion a year earlier and topping the consensus target of $3.52 billion.

The company said it generated a company record $1,428 in revenue per railcar during the fourth quarter. It saw a 1 percent increase in revenue carloads to 2.4 million, but revenue ton-miles declined 1 percent to 136.3 million. Average fuel price surged 42 percent to $2.08 per gallon.

The record revenue per car is a result of the railroad's fuel cost recovery program, which allowed Union Pacific to charge higher rates when fuel prices rose.

Railroad president Jim Young, who became the corporation's chief executive in November, said the company responded well to challenges in the past year.

"Union Pacific is operating more efficiently, allowing us to handle record volumes and recover more rapidly from challenges such as hurricanes, the Kansas washouts and severe winter storms," Young said.

For 2005, the railroad reported net income of roughly $1.03 billion, or $3.85 per share, up from $604 million, or $2.30 per share, in 2004. Revenue gained 11 percent to $13.58 billion.

The 2004 results include the asbestos charge while 2005 includes a $118 million reduction in tax expenses. When those are excluded, net income grew by 20 percent.