Union Pacific profit up 1% as the railroad delivers more fertilizer, imported goods and chemicals
Union Pacific's fourth-quarter profit crept up 1% as the railroad delivered more fertilizer, imported goods and chemicals
OMAHA, Neb. — Union Pacific's fourth-quarter profit crept up 1% as the railroad delivered more fertilizer, imported goods and chemicals.
The Omaha, Nebraska-based railroad said it earned $1.65 billion, or $2.71 per share, in the quarter. That's up slightly from $1.64 billion, or $2.67 per share, a year earlier.
The results topped the estimates of the analysts surveyed by FactSet Research that called for earnings of $2.60 per share as Union Pacific hauled 3% more shipments.
CEO Jim Vena said the railroad's key operating metrics improved in the fourth quarter with average freight car velocity jumping 14% to 217 daily miles per car, and the average maximum length of Union Pacific's trains increased 2% to 9,413 feet. The average speed of the railroad's trains also increased 5% to 24.9 mph.
“We enter 2024 with strong momentum, recognizing we have plenty of opportunity to improve. We’re excited to show our stakeholders what our great team can accomplish,” Vena said.
Union Pacific said it's unclear how much volume will grow because of the “muted” economic outlook this year and uncertainty about interest rates. The railroad also lost a contract to haul some imported goods and it expects weaker coal demand.
“It’s very difficult for us to, look forward and say, this is exactly the way the year is going to go. More important to me and the team is what’ve we done operationally,” Vena said.
No single factor explains the improvement in Union Pacific's operations. Rather, Vena said the railroad is trying to tweak everything and change the culture to reliably speed up when freight cars are picked up, how fast they
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