THE US No 1 railway, the Union Pacific, posted 5.5 per cent year-on-year first quarter net profit increase to US$1.15 billion, drawn on quarterly revenues of $5.61 billion, which fell 0.53 per cent.
The Omaha-based railway credited its higher net profit to lower fuel costs and pricing gains that offset falling freight volumes, but results fell short of market expectations, said Reuters.
The quarterly fuel bill fell 38 per cent to $564 million, decline somewhat offset by a drop in fuel surcharges.
Union Pacific saw the volume of coal on its rails fall five per cent as US utilities took advantage of lower natural gas prices. The strong US dollar has also led to lower coal exports.
Rival US roads, CSX, Norfolk Southern and Kansas City Southern, also reported quarterly freight losses because of by lower coal volumes.
Overall, Union Pacific's freight volumes in the quarter fell two per cent, with declines in all segments except agricultural products and automotive.
"While we took actions during the quarter to adjust for the volume decline, we did not run an efficient operation," said CEO Lance Fritz. "We are taking the steps to align our resources with current demand."
LOGISTICS
27 April 2015 - 18:05
Union Pacific profit up 5.5pc to US$1.15 billion as revenue rises 0.53pc
THE US No 1 railway, the Union Pacific, posted 5.5 per cent year-on-year first quarter net profit increase to US$1.15 billion, drawn on quarterly revenues of $5.61 billion, which fell 0.53 per cent.
LOGISTICS
27 April 2015 - 18:05
Union Pacific profit up 5.5pc to US$1.15 billion as revenue rises 0.53pc
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