(The following story by Dan Piller appeared on the Star-Telegram website on March 2.)
FORT WORTH, Texas — Union Pacific Corp. on Monday said its first-quarter earnings would fall short of expectations because of bad weather, crew shortages and a court decision in Arkansas.
The railroad had said it expected first-quarter profit of up to 40 percent more than the 57 cents per share it earned in the first quarter of last year. But in a statement Monday, Chairman and Chief Executive Dick Davidson said the railroad would fall short of that figure.
Davidson said that snow- storms in the Midwest and Rocky Mountain states have added to costs, as have high fuel prices. In addition, the company is fighting crew shortages until it can hire and train up to 2,000 crew members.
Additionally, the Arkansas Supreme Court has upheld a $30 million judgment against Union Pacific from a 1998 grade-crossing accident. Davidson said that Union Pacific might appeal the case to the U.S. Supreme Court but that it will factor the expense of the Arkansas judgment in its first-quarter earnings.
Davidson told listeners in a conference call that the heavy snow in the Upper Midwest “is one for the history books.” The snow has been particularly heavy around Salt Lake City, a key point on the company’s east-west rail network.
Union Pacific operates a major classification yard in Fort Worth and employs about 1,200 workers in Tarrant County.
In trading Monday on the New York Stock Exchange, Union Pacific’s shares fell $1.05 to $62.59 per share.