Union Pacific delivered 3% more freight as economy recovered
Union Pacific’s fourth-quarter profit chugged ahead as shipping volume improved for the first time since before the coronavirus pandemic slowed the economy to a crawl last year.
The Omaha, Nebraskabased railroad said Thursday that it earned $1.38 billion, or $2.05 per share, in the quarter. That was roughly in line with last year’s $1.4 billion, or $2.02 per share, but this year’s results were weighed down by a one-time $278 million charge. Without that charge, Union Pacific said it would have reported $1.6 billion net income, or $2.36 per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.25 per share.
The railroad posted revenue of $5.14 billion in the period, which met Street forecasts.
Union Pacific said volume grew 3% as the economy continued to recover from the worst of the pandemic. In last year’s second quarter, the number of shipments railroads handled plummeted more than 20% as many businesses and factories shut down as officials imposed restrictions to slow the spread of the coronavirus before rebounding sharply in the third quarter.
Strong growth in online shopping helped drive deliveries of shipping containers known as intermodal shipping up 12% to offset weaker areas during the quarter. CEO Lance Fritz said that growth could slow if consumers return to shopping in stores more once the pandemic eases. (AP)