Union Pacific is reporting a 13 percent jump in fourth-quarter profit as strong grain, automotive and industrial shipments offset a 10 percent drop in loads of coal.

The Omaha, Neb., railroad earned $1.2 billion net income, or $2.55 per share, in the last three months of 2013. That's up from last year's $1 billion net income, or $2.19 per share.

Revenue improved 7 percent to $5.63 billion as the railroad increased rates and volume grew 2 percent overall.

Analysts surveyed by FactSet had expected Union Pacific Corp. to report quarterly earnings per share of $2.49 per share on revenue of $5.57 billion.

CEO Jack Koraleski said Thursday that it looks like the economy will continue to strengthen slowly this year, and the railroad is ready to handle the growth.