Bottomline
OMAHA: Union Pacific hauled in 22% more profit during the first quarter because it charged more and delivered 4% more shipments even as it struggled to clear up congestion along its rail network.
The Omaha, Nebraska, railroad said Thursday it earned $1.63 billion, or $2.57 per share, in the quarter. That’s up from $1.34 billion, or $2 per share, a year ago.
The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.55 per share.
Union Pacific’s Chairman, President and CEO Lance Fritz said the railroad delivered solid financial results but failed to meet customer expectations for service. Federal regulators plan to hold a hearing next week after several groups of shippers complained about delayed deliveries that disrupted their business. (AP)
OMAHA: CSX railroad struggled to keep up with demand in the first three months of the year but still manage to deliver 22% more profit thanks to higher shipping rates offsetting a slight decline in the number of shipments it handled.
The Jacksonville, Florida-based railroad said Wednesday it earned $859 million, or 39 cents per share, in the first quarter. That’s up from $706 million, or 31 cents per share, a year ago.
The results beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 38 cents per share in the latest quarter.
CSX CEO Jim Foote said the key to improving service is hiring more workers, and the railroad has been making progress on that this year. And staffing has improved since the omicron wave of the pandemic peaked in January.
At the start of the year, CSX had only about 6,218 active employees on average at the height of the omicron wave in January. That jumped to 6,459 in February and has continued growing to hit 6,629 on average in April as more new employees complete their training. (AP)
NEW YORK: Amazon is extending the benefits of a Prime subscription to online stores beyond its own site, a move geared toward boosting revenue from merchant fees and expanding its logistics footprint.
The company said Thursday the new service it calls “Buy with Prime,” will initially be available by invitation for merchants who ship their products using Amazon’s warehouse and delivery services. Then, it will be rolled out for merchants who don’t sell on Amazon or use its delivery services.
Amazon.com Inc. said the service will only be available for U.S. customers. Launched in 2005, Prime has more than 200 million members worldwide who pay $139 a year, or $14.99 a month, for faster shipping and other perks, such as free delivery and returns. (AP)