First look: Union Pacific earnings

Union Pacific reported a 16% increase in third-quarter profit Thursday as higher freight volumes, pricing gains and fuel surcharges lifted revenue, with intermodal traffic leading the railroad’s growth.

The Omaha-based railroad (NYSE: UNP) earned $2.08 billion, or $3.49 per diluted share, compared with $1.79 billion, or $3.01 per share, a year earlier. Adjusted earnings of $3.53 per share exceeded the $3.47 consensus estimate compiled by Zacks Investment Research.

Operating revenue increased 15% to $7.2 billion, while freight revenue excluding fuel surcharges rose 6%. Total revenue carloads grew 6% to 2.29 million. Intermodal volume increased 11% to 956,000 containers and trailers, and intermodal revenue climbed 27% to $1.52 billion. Industrial volumes rose 6%, while bulk traffic was essentially flat.

“Union Pacific’s third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling 6% volume growth,” Chief Executive Jim Vena said in the earnings release.

This story was originally published by FreightWaves. Read the full story at FreightWaves →