Union Pacific delivers 7% more profit as investors get good view of industry with CSX also reporting

OMAHA, Neb. (AP) — Union Pacific reported a 7% increase in fourth-quarter profit as it managed to deliver more freight with fewer employees and continued to make the railroad more efficient.

The Omaha, Nebraska-based railroad company reported earnings of $1.76 billion on Thursday, or $2.91 per share, easily beating Wall Street expectations. That’s up from $1.65 billion, or $2.71 per share, a year ago. The railroad improved its bottom line even though it had a one-time additional cost related to some brake buyouts that added $40 million in costs.

Wall Street expected Union Pacific to report earnings per share of $2.80 on average, according to FactSet Research’s survey of analysts.

“It’s been a very successful year for the Union Pacific team, and we actually finished the year on a high note in the fourth quarter,” said CEO Jim Fina.

Revenue fell 1% to $6.12 billion in the quarter despite a 5% rise in volume because most of the additional shipments were intermodal carloads that are less profitable than coal and other categories. Analysts expected railway revenues to reach $6.15 billion.

Union Pacific said it is on track to meet its long-term goals of delivering significant earnings per share growth to low double digits over the next three years.

CSX, one of the other four major freight railroads, will release its results Thursday afternoon. Analysts expect CSX to earn 42 cents per share on revenue of $3.5578 billion.

CSX began the quarter by dealing with the aftermath of Hurricanes Helen and Milton in the Southeast, but officials said in October when the railroad reported third-quarter results that it was able to get its trains moving quickly again after those storms.

CSX and Union Pacific are two of the largest railroads in the country with CSX serving the eastern United States and UP serving the west.

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