(The Associated Press circulated the following article on April 21.)
OMAHA, Neb. — Railroad operator Union Pacific Corp. said Thursday that its first-quarter profit plunged 22 percent, due to higher fuel costs and severe weather along the West Coast that disrupted service in January.
Quarterly income fell to $128 million, or 48 cents per share, from $165 million, or 63 cents, in the year-ago period. The company’s earnings, however, hit the top end of a forecast from March and managed to top the average estimate of 47 cents per share from analysts polled by Thomson Financial.
Operating revenue at the operator of the largest railroad in the U.S. totaled $3.15 billion, up 9 percent from $2.89 billion a year earlier. Revenue from commodity shipments was 8 percent higher at $3 billion on a 1 percent increase in overall volume and greater fuel surcharges, Union Pacific said.
The company’s average revenue also expanded by 8 percent to $1,306 per car from $1,214 the year before.
In the latest quarter, fuel and utility expenses surged 39 percent to $539 million, Union Pacific said, adding that its average fuel price jumped to $1.45 per gallon from $1.02 per gallon in last year’s quarter.
“Demand for our services remains strong and our task is to leverage that strength into better bottom-line results,” said Dick Davidson, chairman and chief executive officer.