OMAHA, Neb. — Union Pacific Corp., North America’s biggest railroad operator, said on Thursday first-quarter profits rose 23 percent on cost-cutting and cheap fuel.
The Omaha, Nebraska, firm, which also owns a trucking company, said in a news release that quarterly net income was $222 million, or 86 cents a share, up from $181 million, or 72 cents.
Wall Street had expected Union Pacific to earn between 80 cents and 85 cents a share, with a consensus forecast of 83 cents, according to nine analysts surveyed by Thomson Financial/First Call.
Rail revenues were $2.97 billion, up from $2.94 billion.
Union Pacific shares, which have given up some gains from a rally in rail stocks fueled by optimism about the U.S. economy, closed on Wednesday at $54.75, down 93 cents. Union Pacific is up about 9 percent over the last six months while the Dow Jones U.S. Total Market Index has risen about three percent.