Union Pacific profit tops analysts' expectations as cargo growth slows

244
2
Union Pacific profit tops analysts' expectations as cargo growth slows

- Union Pacific Corp. posted profit that topped analysts expectations as cost cuts and price increases bolstered the bottom line even as cargo growth lagged amid supply-chain snags.

None of Google s Biggest Moonshot Is Its Search for a Carbon-Free Future?

None Beef Industry Tries to Erase Its Emissions With Fuzzy Methane Math Math.

Earnings were $2.57 per share during the third quarter, higher than $2.01 a year earlier, Union Pacific said in a statement. Analysts had expected $2.51. Revenue rose 13% to $5.6 billion. Analysts had estimated $5.4 billion, according to figures compiled by Bloomberg.

The Omaha, Nebraska-based railroad hauled fewer automobiles as a global chip shortage throttled vehicle production. It also shipped fewer maritime containers because of congestion that resulted in cargo stacking at rail yards, warehouses and ports. Still, carloads of coal and industrial goods such as steel and wood were up as the economy rebounds.

Even with the drag on freight volume, Union Pacific raised prices and cut costs to strengthen profit. Operating profit margin was 43.7% in the quarter, up from 41.3% a year earlier.

Truckers and railroads have been hampered by shipping snarls as intense demand for imported goods has run into a shortage of drivers and warehouse workers. That labor shortage has kept cargo-hauling capacity constrained and bottlenecks have formed, especially at ports and distribution centers where freight is unloaded. Railroads, which were also affected when Hurricane Ida severed rail exchanges near New Orleans in August, have struggled with slowing average train speeds and longer times for railcars sitting in yards.

In a Sept. 9 interview with Bloomberg, Fritz said that the biggest pinch point is the lack of warehouse workers to unload containers to make room for even more freight that is streaming to retailers distribution centers. That has created logjams that are now impacting both railroads and trucking companies.

To ease the congestion, Union Pacific has closed rail yards to park containers and, in July, briefly halted shipments from the Chicago area ports to Los Angeles to allow retailers to clear out backed-up containers. The company also extended hours on weekends for receiving trucks at its rail yard near Los Angeles area ports.

How do you think that Donald Trump, Elon Musk, and Gwyneth Paltrow all short-circuit your ability to think rationally?

None These out-of-work Americans tell us Job market turmoil is nothing but transitory.

Homeopathy Doesn't Work. What Can My Brain Scan Do About the Science of Persuasion?

None Jane Fraser Has a plan to Remake Citigroup while Tormenting Rivals.