(Reuters circulated the following on May 20, 2009.)
CHICAGO — Recession-hit freight volumes at Union Pacific Corp appear to have stabilized but the No. 1 U.S. railroad is not planning on a U.S. economic recovery before 2010, the company’s top executive said on Wednesday.
Speaking at an investor conference in New York, Chief Executive Jim Young also said that Union Pacific’s suspended share buyback program will not be restarted “until things start to turn around.”
The major U.S. railroads have managed to maintain robust profits despite a steep drop in freight volumes due to the recession.
Last week the Association of American Railroads said that rail car loads were down 18.8 percent for the first 18 weeks of the year.
In early trading on the New York Stock Exchange, Union Pacific shares were up 97 cents, or 2 percent, at $49.14.