Union Pacific Posts Higher Profit, Revenue on Volume Growth
What happened
- Union Pacific reported third-quarter profit of $2.08 billion, or $3.49 a share, versus $1.79 billion, or $3.01 a share, a year earlier.
- Revenue rose 15% to $7.19 billion, while operating income increased 15% to $2.94 billion.
- Overall volume grew 6%, with premium volume up 9%; higher volume, pricing and efficiency gains offset rising fuel prices and inflation.
Why it matters
The results indicate that volume growth and operating execution are supporting railroad earnings despite cost inflation and higher fuel prices. Industrial and transportation professionals will watch whether truck-to-rail conversions and intermodal demand persist, while finance teams assess the higher capital-spending plan.
What to watch. Union Pacific expects positive fourth-quarter volume, although coal volume is expected to remain under pressure; it now expects to spend $3.5 billion on capital projects this year.
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Timeline
- EarlierOct 16Union Pacific Corp.: Executive or director change
- 8-K current reportOct 22Union Pacific Corp.: Results of operations
- First reported by The Wall Street JournalOct 22Union Pacific Posts Higher Profit, Revenue on Volume Growth
- FreightWaves reportsOct 22Union Pacific posts record third-quarter revenue and profits
Who is involved
Sources (3)
- SEC EDGAROct 22Union Pacific Corp.: Results of operations
- The Wall Street JournalOct 22Union Pacific Posts Higher Profit, Revenue on Volume Growth
- FreightWavesOct 22Union Pacific posts record third-quarter revenue and profits
Related
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