(Reuters circulated the following on October 18.)
CHICAGO — No. 1 U.S. railroad Union Pacific Corp posted a better-than-expected jump in quarterly profit on Thursday due to higher freight volumes and strong pricing.
But the railroad warned that in the short-term it was cautious about the shape of the U.S. economy and challenges posed by higher fuel prices.
The Omaha, Nebraska-based company reported third-quarter net income of $532 million or $2.00 per share, compared with $420 million or $1.54 per share a year earlier.
Wall Street analysts had on average expected earnings per share for the quarter of $1.77, according to Reuters Estimates.
Union Pacific said revenue in the third quarter rose to $4.19 billion from $3.98 billion a year earlier. Analysts had expected revenue of $4.21 billion.
Revenue in all the railroad’s freight commodity classes was up except for industrial products, where revenue fell 4 percent.
Union Pacific Chief Executive Jim Young said in a statement that despite the strength of the third quarter, “near-term we remain cautious on the economy and see challenges from rapidly increasing diesel fuel prices.”
In light pre-market trading Union Pacific shares were up nearly $1.02 at $120 from Wednesday’s official close on the New York Stock Exchange of $118.98.