UNP Union Pacific Corp

By Micah Maidenberg

Union Pacific Corp. reported better demand during the fourth quarter, a sign the railroad may be seeing hints of a broader recovery from the economic downturn caused by the coronavirus last year.

The Omaha-based railroad reported a profit of $1.38 billion, or $2.05 a share, compared with $1.4 billion, or $2.02 a share, for the year earlier. Excluding a $278 million pretax, non-cash impairment charge, profit was $2.36 a share, 11 cents more than what analysts were looking for on that earnings metric.

The charge related to the company's Brazos Yard property, located in Texas.

Revenue slipped to $5.14 billion from $5.21 billion, the company said, and was roughly in line with what analysts had forecast, according to FactSet.

The pandemic and the economic recession it caused hampered demand for rail shipments for much of last year. Overall, during the first 52 weeks of last year, U.S. railroads reported a 13% decline in carload volumes compared with the year earlier and a 2% drop in intermodal volumes, the Association of American Railroads said last month. However, demand has been better so far in the new year.

Union Pacific said volumes increased 3% in the fourth quarter, led by premium shipments. Bulk volumes were flat while industrial demand declined. Volume growth and price increases were more than offset by decreased fuel surcharges and a less favorable mix in shipments, the company said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

January 21, 2021 08:38 ET (13:38 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.