Union Pacific profit grows 7% as the railroad continues to get more efficient under CEO Jim Vena

abcnews.go.com:

Union Pacific delivered 7% growth in its second-quarter profit even though the number of shipments it hauled remained essentially flat because it was able to continue streamlining its operations

OMAHA, Neb. — Union Pacific delivered 7% growth in its second-quarter profit even though the number of shipments it hauled remained essentially flat because it was able to continue streamlining its operations.

The Omaha, Nebraska, railroad said Thursday that it earned $1.67 billion, or $2.74 per share, in the quarter. That's up from last year's $1.57 billion, or $2.57 per share, before CEO Jim Vena took over after a hedge fund pressured Union Pacific to improve its profitability.

“This provides further proof that our strategy to be the best in safety, service, and operational excellence will drive success," Vena said. “The entire Union Pacific team is energized behind this strategy and wants to win.”

The results topped the prediction for earnings of $2.72 per share from the analysts surveyed by FactSet Research.

Vena said in a letter to employees reflecting on his first year on the job that he’s proud of the way employees have responded to the “challenges that come with operating the largest railroad in North America” and improved service as he expects more and more of them.

“I said from day one I would ask a lot of you, and demand even more from myself,” Vena said.

The improvement at UP has come through many different changes across the railroad as it worked to continually increase the length of its trains while limiting the size of its workforce. Vena said the next improvements will come as the railroad continues to get employees thinking about how Union Pacific can handle more freight efficiently as they try to convince