Union Pacific, Canadian Pacific Earnings Slump; Kansas City Southern Gains
Union Pacific Corp. and Canadian Pacific Railway Ltd. this week reported second-quarter net income fell 19% and 16%, respectively, in a weak rail freight market, while smaller carrier Kansas City Southern raised net income 7% with help from a tax credit.
Union Pacific earned $979 million, or $1.17 per share, as revenue slumped 12% to $4.77 billion, including 16% lower truck/rail revenue and 14% fewer intermodal shipments. Freight loads fell 11%.
Net income slipped to C$328 million ($254.2 million) at Canadian Pacific. Revenue also fell 12%, reaching C$1.45 billion. Intermodal shipments fell 5%.
Kansas City Southern earned $120.1 million, or $1.11 per share, aided by lower costs as well as a $34 million fuel tax credit. Revenue fell 3%, or $17.3 million, and expense declined by $50.4 million, including the tax credit. Intermodal cargo declined 2%.
