Union Pacific 2Q Profit Sank On Weak Consumer Demand
July 26 2023 - 8:36AM
Dow Jones News
By Ben Glickman
Union Pacific Corporation's second-quarter profit missed
estimates as the company saw lower shipment volumes on weaker
consumer demand and inflation.
The Omaha, Neb.-based railroad freight company reported profit
of $1.569 billion, or $2.57 a share, in the second quarter,
compared with $1.835 billion, or $2.93 a share, in the year-ago
quarter. Analysts polled by FactSet expected per-share earnings of
$2.76.
Union Pacific's sales fell 5% to $5.963 billion in the quarter,
missing the $6.09 billion forecast by analysts surveyed by
FactSet.
The company's revenue sank because of lower volumes and fuel
surcharge income. Business volumes, which the company measures in
terms of total revenue carloads, fell 2%.
Chief Executive Officer Lance Fritz said softer consumer demand
and inflation weighed on results in the quarter. A one-time labor
expense of $67 million also ate into the company's profits.
The company also said Fritz would be succeeded by Jim Vena as
CEO, one of several changes to the board of directors.
The company's derailment rate in the first half of the year
improved 9% compared to the prior year.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
July 26, 2023 08:21 ET (12:21 GMT)
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