By Angela Chen
Union Pacific Corp. reported Thursday that revenue fell a
worse-than-expected 9.7%, as the railroad company struggled with
low demand.
"Solid core pricing gains were not enough to overcome a
significant decrease in demand," said Chief Executive Lance Fritz.
"Total volumes in the second quarter were down 6%, led by a sharp
decline in coal. Industrial products and agricultural products also
posted significant volume decreases."
Coal freight revenue fell to $679 million from $989 million.
Agricultural products freight revenue fell to $867 million from
$934 million.
Intermodal revenue fell 5.5% to $1.09 billion as industrial
products fell 14% to $970 million.
Overall, Union Pacific reported a profit of $1.2 billion, or
$1.38 a share, down from $1.29 billion, or $1.43 a share, a year
earlier.
Revenue fell to $5.43 billion from $6.02 billion.
Analysts polled by Thomson Reuters had expected per-share profit
of $1.35 and revenue of $5.6 billion.
Shares, inactive premarket, have fallen about 18% this year.
Write to Angela Chen at angela.chen@dowjones.com
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