Union Pacific Profits Up 9.5%, Easily Beat Forecasts
Union Pacific’s profits increased 9.5% to $1.07 billion dollars, or $1.32 per share, after strong results on a year-over-year basis in the coal, agricultural and intermodal transportation.
The results beat the forecasts of about $1.23, according to a Bloomberg News survey of industry analysts.
One year ago, Union Pacific generated $979 million in profits or $1.16.
Revenue from freight transportation grew 6.5% to $4.79 billion.
“This is a very solid start to the year, especially given the weather challenges we encountered on the western part of our network earlier in the quarter,” said Lance Fritz, Union Pacific chairman and CEO. “In keeping with our strategic value tracks, our engaged employees worked safely and productively under very difficult circumstances during the quarter. As a result, operations were restored quickly as we continued to focus on providing an excellent customer experience.”
Coal was the big winner for Union Pacific, as revenue grew 25% versus 2016 levels to $648 million. Volume improved 16% to 304,000 carloads.
Intermodal revenue climbed 3% to $908 million and, although volume was flat year-over-year, Union Pacific was able to get more money per carload to come out ahead.
Revenue from agriculture rose 7% to $942 million, and volumes increased 6% to 250,000 carloads.
Union Pacific’s operating ratio was flat at 65.1%, which the company blamed on a 40% jump in the price of diesel compared with a year ago.
