Union Pacific 3Q Profit Falls on Lower Volumes, Fuel Surcharge Revenue
By Dean Seal
Union Pacific's earnings and sales fell in the third quarter as volumes declined and fuel prices rose.
The railroad freight company posted a profit of $1.5 billion, compared with $1.9 billion in the same quarter a year ago.
Earnings slid to $2.51 a share from $3.05 a share in the year-ago quarter. Analysts polled by FactSet had been expecting $2.41 a share.
Quarterly revenue was $5.94 billion, down from $6.57 billion last year and below FactSet consensus forecast of $5.96 billion.
The top line declined 10% on lower volumes and fuel surcharge revenue, with higher prices only slightly offsetting the shortfall.
Business volumes, as measured by carloads, were down 3% while quarterly workforce productivity decreased 6%.
The Omaha, Neb.-based company said its derailment rates improved during the quarter and its quarterly locomotive productivity was up 4%.
Chief Executive Jim Vena said the company continues to face inflationary pressure and a drop in carloads, though operating and safety metrics are showing solid improvement.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
October 19, 2023 08:20 ET (12:20 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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