(MENAFN) Union Pacific, based in Omaha, Nebraska, announced a first-quarter profit of USD1.64 billion, or USD2.69 per share, representing a 1 percent increase from the previous year. Despite a slight decline in shipping volume by 1 percent, the railroad managed to exceed analysts' expectations, with earnings surpassing the projected USD2.51 per share.
CEO Jim Vena highlighted the company's progress in maintaining safety, service quality, and operational excellence, emphasizing the momentum established in late 2023. The drop in fuel surcharge revenue, attributed to lower fuel prices, impacted the overall revenue, which stood at USD6.03 billion, slightly down from last year's USD6.06 billion but still beating analysts' estimates of USD5.974 billion.
Union Pacific achieved a 3 percent reduction in expenses, totaling USD3.66 billion for the quarter. Notably, fuel expenses saw a significant decline of 14 percent to USD658 million. Despite challenges such as the loss of international intermodal business and lower coal shipments, the company expressed optimism about profit growth for the year. As a result, Union Pacific plans to resume its stock repurchases in the second quarter.
As one of the largest railroads in the United States, Union Pacific operates a vast network of over 30,000 miles of track across 23 Western states.
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