By Tess Stynes
Union Pacific Corp. said its fourth-quarter earnings rose 13% on
improved shipments and pricing gains, despite a continued slump in
coal volume.
Top U.S. railroads--considered a barometer of overall economic
activity--have broadly been hurt by weak coal demand from domestic
utilities as a result of low-cost natural gas and high coal
stockpiles. Economic uncertainty has also weighed on the company's
intermodal volume, which measures the movement of freight by two or
more modes of transportation.
Chief Executive Jack Koraleski said Union Pacific recorded
overall volume growth for the first time in six quarters, despite
significantly weaker coal shipments.
Union Pacific reported a profit of $1.17 billion, or $2.55 a
share, up from $1.04 billion, or $2.19 a share, a year earlier.
Operating revenue increased 7.2% to $5.63 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$2.49 and revenue of $5.57 billion.
Volume--or total revenue carloads--rose 2% as growth in its
agricultural products, automotive, industrial products and
intermodal shipments more than offset declines in coal and chemical
volumes.
Average revenue per car rose 5.6%.
Write to Tess Stynes at tess.stynes@wsj.com
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