(The Associated Press circulated the following article by Josh Funk on September 27.)
OMAHA, Neb. — Union Pacific Corp. said it was reopening key routes in east Texas and western Louisiana now that employees fleeing Hurricane Rita have started to report to work.
Union Pacific avoided catastrophic damage from the hurricane but about 2,500 miles of the company’s track was affected by Rita, the Omaha, Neb.-based company said. But by Tuesday more than half of the trains held due to weather have started to move again, the company said in a news release.
The affected routes, which represent about 7.5 percent of the company’s 33,000 miles of track, connect Houston to New Orleans and Shreveport, La.
The company estimates that Rita could reduce the company’s income by about $25 million, which would hurt future earnings.
Employees have started to report to work in the greater Houston area, meaning business is returning to near-normal operations, spokeswoman Kathryn Blackwell said.
Lines from Houston to Beaumont, Texas and other destinations were to reopen late Tuesday or Wednesday, she said. Holds on other lines will be evaluated Wednesday, she said.
Union Pacific had been working to reroute traffic onto other lines in the area while crews cleared debris and set up generators, Blackwell said. The company was having trouble contacting all of its employees because many of them were evacuated ahead of Rita, she said.
No employees were laid off because of the hurricane, Blackwell said, but 11 dispatchers from Spring, Texas, were temporarily relocated to Omaha to help direct traffic.
The company previously forecast earnings of 88 cents to 98 cents per share for the company’s third quarter. But income loss from hurricane damage and closures could see earning per share come in “at the mid- to lower end” of its guidance, the company said.
Before Rita, Union Pacific had been on pace for a strong third quarter. In August, the company set several car loading and revenue records.
Analysts surveyed by Thomson Financial predict third-quarter earnings of 93 cents per share, on average.
After the announcement, the company’s shares closed down $1.58 on Monday, or 2.3 percent, to $68.25 on the New York Stock Exchange. Shares rose 30 cents to close at $68.55 Tuesday.The stock has traded in a 52-week range of $58.13 to $71.25.