Union Pacific sees drop in Q3 earnings

The Omaha, Neb.-based railway posted a net income of $1.3 billion on revenues of $5.6 billion for the third quarter of 2015.    Union Pacific Corporation posted a net income of $1.3 billion for the third quarter of 2015, a 5 percent drop from the third quarter of 2014. The railway decreased diluted earnings per share from $1.53 to $1.50 per diluted share for the quarter.
   Operating revenues reached $5.6 billion for the third quarter, a 10 percent decline from the third quarter of 2014, the railway said.
   Union Pacific’s operating ratio was 60.3 percent, 2 points better than last year’s third quarter and 1.1 points better than the previous all-time quarterly record set in the fourth quarter 2014. “The operating ratio benefited by about 1.5 points from the net impact of lower fuel prices during the quarter,” Union Pacific said.
   Business volumes, as measured by total revenue carloads, were down about 6 percent from the third quarter of 2014.
   In individual business segments, compared to the third quarter of 2014, freight revenues for coal  were down 18 percent; industrial products were down 16 percent; intermodal was down 11 percent; chemicals were down 6 percent; and agricultural products were down 4 percent. Automotive revenues remained flat.
   “We’ve made great progress in meeting this year’s challenges. As we finish 2015 and head toward next year, we continue to face many uncertainties,” Union Pacific Chairman, President and CEO Lance Fritz said. “Energy prices, the consumer economy, grain markets and the strength of the U.S. dollar will all be key to future demand. Over the long term, we are well positioned to safely provide our customers with excellent service, while delivering strong value to our shareholders.”