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Transportation company Union Pacific Corporation (NYSE:UNP) today reported a 28% increase in its second-quarter profit, driven by higher prices and fuel surcharges.
Union Pacific reported second-quarter net income of $1 billion, or $2.10 per share, compared to $785 million, or $1.59 per share reported for the same period in the previous year. Second-quarter earnings beat consensus forecast of $1.97 per share.
UNP’s revenue for the quarter rose 7% to $5.22 billion, in-line with analysts’ expectations.
Union Pacific CEO Jack Koraleski noted that he still finds the shipment data encouraging. Koraleski doesn’t think that the economy is tanking. He said that it continues on kind of a slow-growth trajectory.
Union Pacific saw volume and price increases in four of its six business divisions. The company’s total freight volume rose less than 1% to 2.3 million carloads, as automotive, chemical, industrial and international shipments saw an improvement. Coal shipment volume, however, dropped 17%, reflecting the weak demand for coal due to mild weather and low natural gas prices.
UNP stock rose sharply today, touching a new 52-week high of $123.56. The stock ended the day 3.52% higher at $122.77 on above average volume of 5.54 million.
