The Union Pacific railroad’s 3rd-quarter profit fell 19% as it hauled about 3% fewer shipments and costs remained high, but the numbers were still better than predicted.
The U-P says it earned $1.53 billion dollars or $2.51 per share – results that topped Wall Street expectations.
The railroad’s total revenue slipped 10% to $5.9 billion in the quarter because of the lower volumes and the lag between when fuel prices increased and when the railroad’s fuel surcharge kicked in.
One positive was that the average speed of Union Pacific trains improved 5% as new CEO Jim Vena began to tweak operations. Vena says he’s focused on improving safety and service at the railroad.
More cuts are possible but major changes aren’t expected because the Union Pacific already overhauled its operation several years ago.