[Stay on top of transportation news: .]
Union Pacific Boosts 3Q Earnings Forecast
Lower Fuel Costs Offset Hurricane-Related Charges
Freight railroad Union Pacific Corp. Tuesday boosted its third-quarter earnings forecast due to lower fuel prices and improved operating efficiency.
Third-quarter earnings will be $1.28 to $1.33 per share, up from an original projection of $1.10 to $1.20 per share, the rail line said in a statement.
Volumes this quarter are about 5% lower than a year ago, which is below UP’s prior expectations of a 1% to 2% quarterly decline.
UP said fewer shipments of finished vehicles, automotive parts and intermodal containers have been the key drivers of the year-over-year decrease.
Hurricanes Gustav and Ike “significantly impacted volumes, particularly chemicals and industrial products” and will reduce earnings by about 10 cents a share as a result of the hurricanes, primarily Ike, UP said.
Union Pacific, the largest U.S. freight railroad by revenue, operates west of the Mississippi River.
