Union Pacific (NYSE:UNP)
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1 Year : From May 2018 to May 2019
By Kimberly Chin
Union Pacific Corp. (UNP) said profit rose 33% on higher carloads and volume in the third quarter.
The railroad transport company earned $1.59 billion, or $2.15 a share, up from $1.19 billion, or $1.50 a share, from the same quarter a year earlier. Analysts polled by Refinitiv were expecting earnings of $2.10 a share.
Total operating revenue rose 10% to $5.93 billion. Analysts estimated the company would make $5.92 billion.
The Omaha, Neb.-based company plans to lay off about 500 employees before the end of the year, the first of several rounds of job cuts as the railroad implements a new operating plan to turn around its performance. It will also eliminate 200 contract positions, according to an internal memo The Wall Street Journal reported Tuesday.
The company, one of two major freight railroads in the Western U.S., has been struggling this year with congestion and service issues that have depressed its profits.
Union Pacific reported higher fuel costs in the quarter, spending $659 million on fuel, up 46% from the same period a year earlier, as the cost of diesel per gallon rose 34%.
Write to Kimberly Chin at email@example.com
(END) Dow Jones Newswires
October 25, 2018 08:42 ET (12:42 GMT)
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