Weak Grain Exports, Falling Coal Demand, Declining Auto Production Hurt Union Pacific -- Commodity Comment
October 17 2019 - 9:26AM
Dow Jones News
Union Pacific Corp. (UNP) said Thursday that volumes, as
measured by revenue-generating carloads, weakened 8% in the third
quarter. The decline crimped the company's revenue, which fell 7%
and missed the consensus estimate from FactSet.
Here is what railroad, which owns major freight lines throughout
the West, Midwest and Southwest parts of the U.S., said about
demand in the quarter for the various commodities and products that
it hauls.
Grains: Shipments of grains weakened 3% in the third quarter
compared with last year. Reduced exports hurt demand, Union Pacific
said in an investor presentation.
Grain products: Volumes were flat.
Fertilizer and sulfur: Volumes dropped 5%.
Sand: Shipments dropped 45% versus the year earlier.
Coal: Volumes fell 17%. The company cited "continued coal
challenges" in an investor presentation.
Petroleum, liquefied petroleum gas and renewables: Shipments
increased 18%. Crude-oil shipments bolstered results, Union Pacific
said.
Construction materials: Volumes rose 16% on strong demand,
according to the railroad.
Plastics: Volumes gained 7%.
Forest products: Shipments slipped 11%.
Domestic premium products, such as intermodal shipments and auto
parts: Demand for domestic-intermodal shipments was soft, the
company said, with volumes falling 11%.
International intermodal: Volumes fell 12%. Union Pacific cited
"tariffs and trade uncertainty" in an investor presentation when
discussing its premium business, which includes the intermodal
unit.
Finished vehicles: Volumes fall 4% from the year earlier amid
"declining auto production," the railroad said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 17, 2019 09:11 ET (13:11 GMT)
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