OMAHA, Neb. (AP) — Union Pacific’s third-quarter profit fell 19% as the railroad hauled fewer shipments and costs remained high, but the average speed of its trains improved 5% as new CEO Jim Vena began to tweak the operations.
The Omaha, Nebraska- based railroad said it earned $1.53 billion, or $2.51 per share, during the quarter, That’s down from $1.9 billion, or $3.05 per share. But the results topped the $2.42 that 12 analysts surveyed by FactSet Research expected.
The number of shipments Union Pacific delivered slipped 3% in the quarter, and while costs improved about 4% they remained elevated at $3.76 billion.
The railroad’s revenue slipped 10% to $5.9 billion because of the lower volume and the lag between when fuel prices increase and when Union Pacific’s fuel surcharge kicks in.