This post was originally published on this site
Congestion at ports, mainly in California from where Union Pacific hauls freight, and fewer trucks to make “last-mile” deliveries have hit the company’s volumes during the quarter, which were flat.
Union Pacific, which operates in 23 states and connects East Coast ports to key terminals like Chicago, said it expects https://www.up.com/cs/groups/public/@uprr/@investor/documents/investordocuments/pdf_unp_3q21_er_slides.pdf 2021 volume growth of 5% versus a 7% growth it had forecast earlier.
The company’s quarterly profit, however, rose 23% as it shipped more chemicals, metals, minerals, paper and plastics to meet U.S. industrial demand.
A rise in U.S. industrial production during the first two months of the quarter and a jump in crude prices benefited the company.
Revenue carloads, or business volumes, were flat at 2.04 million, as supply chain disruptions and a bridge outage in California took a toll.
Union Pacific’s third-quarter total operating revenue rose 13% to $5.57 billion, beating average analysts’ estimate of $5.41 billion, according to Refinitiv I/B/E/S.
The Omaha, Nebraska-based company’s net income rose to $1.67 billion, or $2.57 per share, for the quarter ended Sept. 30, from $1.36 billion, or $2.01 per share, a year ago.
Analysts, on average, had expected a profit of $2.49 per share.
