Union Pacific Q2 profit jumps 59% as volume grows 22%

Jul 21, 2021, 6:13 PM | Updated: Jul 22, 2021, 8:47 am
FILE - In this Sept. 13, 2019, file photo the logo for Union Pacific appears above a trading post o...

FILE - In this Sept. 13, 2019, file photo the logo for Union Pacific appears above a trading post on the floor of the New York Stock Exchange. Union Pacific’s second-quarter profit jumped 59% as the railroad hauled 22% more cargo than a year ago when shipments fell to the lowest levels of the coronavirus pandemic. The Omaha, Nebraska-based railroad said Thursday, July 22, 2021, that it earned $1.8 billion, or $2.72 per share during the quarter. That’s up from $1.13 billion, or $1.67 per share, a year ago. The results surpassed Wall Street expectations. (AP Photo/Richard Drew, File)

(AP Photo/Richard Drew, File)

OMAHA, Neb. (AP) — Union Pacific’s second-quarter profit jumped 59% as the railroad hauled 22% more cargo than a year ago when shipments fell to the lowest levels of the coronavirus pandemic.

The Omaha, Nebraska-based railroad said Thursday that it earned $1.8 billion, or $2.72 per share, during the quarter. That’s up from $1.13 billion, or $1.67 per share, a year ago.

The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.55 per share.

Union Pacific CEO Lance Fritz said the railroad delivered strong results despite the ongoing congestion issues in West Coast ports and at the key rail hub of Chicago as demand for imported products surged. Some of those problems are likely to linger through the rest of the year because of a shortage of trucks to haul shipping containers out of the ports and rail terminals.

Recently, Union Pacific temporarily stopped hauling shipping containers from West Coast ports to Chicago to help alleviate the congestion in that city.

The number of shipments Union Pacific handled during the quarter was up in every category of freight. A year ago, restrictions related to the pandemic caused more than a 20% drop in shipping volume across all major railroads.

Union Pacific said it now expects shipping volume to grow 7% overall this year as the economy continues to recover from the pandemic. That’s up slightly from its previous prediction of 6% volume growth.

Edward Jones analyst Jeff Windau said Union Pacific has handled the surge in volumes efficiently so far without hiring many new workers, and it has been able to deliver strong profits in the process by increasing prices while handling more freight.

The railroad said its revenue grew 30% to $5.5 billion in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $5.38 billion.

Union Pacific shares have increased slightly more than 4% since the beginning of the year, while the S&P 500 index has increased 16%. The stock has climbed 22% in the last 12 months. It’s shares increased more than 2% in early trading Thursday after the earnings report was released.

Union Pacific is one of the nation’s largest railroads, and it operates 32,400 miles (52,000 kilometers) of track in 23 Western states.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UNP at https://www.zacks.com/ap/UNP

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Colorado Rapids and the Seattle Sounders take the field

Seattle Sounders FC (17-6-6) vs. Colorado Rapids (14-6-9) Commerce City, Colorado; Wednesday, 9 p.m. EDT FANDUEL SPORTSBOOK LINE: Colorado +116, Seattle +215, Draw +238; over/under is 2.8 goals BOTTOM LINE: The Colorado Rapids and the Seattle Sounders hit the field. The Rapids finished 8-6-4 overall a season ago while going 3-1-3 at home. Colorado scored […]
1 day ago
People pass by an electronic stock board of a securities firm in Tokyo, Monday, Oct. 18, 2021. Asia...
Associated Press

Asian shares slide as Chinese growth data disappoints

Asian shares were mostly lower on Monday after China reported its economy grew at a meager 4.9% annual pace in July-September. The Shanghai Composite index lost 0.2% to 3,565.18 while the Hang Seng in Hong Kong declined 0.5% to 25,217.81. Chinese growth is under pressure from government controls meant to curb energy use and reduce […]
1 day ago
A man lays a candle at a new memorial at a mass grave to some 60 Jews, executed during the Holocaus...
Associated Press

Sites where Germans killed Jews are dedicated in Poland

WOJSLAWICE, Poland (AP) — The Polish witnesses of the German crime in Wojslawice lived for decades with the memories of their Jewish neighbors executed in 1942. They remembered a meadow that flowed with blood, a child who cried out for water from underneath a pile of bodies, arms and legs that still moved days after […]
1 day ago
FILE - In this Aug. 11, 2019, file photo, a cellphone is used in New Orleans. A former college bask...
Associated Press

New technology offers anonymous way to report abuse, doping

A college basketball player hatched the idea after seeing a discrimination case nearly implode his own team, then wondering why nobody had done anything about it sooner. Ten years later, that player has developed the idea into a key tool for fixing a sports landscape teeming with cases of sexual abuse, along with examples of […]
1 day ago
FILE - In this Aug. 3, 2021 file photo, Pakistan Army troops patrol along the fence on the Pakistan...
Associated Press

Afghan Taliban’s victory boosts Pakistan’s radicals

PESHAWAR, Pakistan (AP) — In Pakistan’s rugged tribal regions along the border with Afghanistan, a quiet and persistent warning is circulating: The Taliban are returning. Pakistan’s own Taliban movement, which had in years past waged a violent campaign against the Islamabad government, has been emboldened by the return to power of the Taliban in Afghanistan. […]
1 day ago
FILE - In this Sept. 6, 2007 file photo, actor Betty Lynn, who played Thelma Lou on "The Andy Griff...
Associated Press

Betty Lynn, Thelma Lou on ‘The Andy Griffith Show,’ has died

MOUNT AIRY, N.C. (AP) — Betty Lynn, the film and television actor who was best known for her role as Barney Fife’s sweetheart Thelma Lou on “The Andy Griffith Show,” has died. She was 95. Lynn died peacefully Saturday after a brief illness, The Andy Griffith Museum in Mount Airy, North Carolina, announced in a […]
1 day ago

Sponsored Articles

...

How to Have a Stress-Free Real Estate Experience

The real estate industry has adapted and sellers are taking full advantage of new real estate models. One of which is Every Door Real Estate.
...
IQ Air

How Poor Air Quality Is Affecting Our Future Athletes

You cannot control your child’s breathing environment 100% of the time, but you can make a huge impact.
...
Swedish Health Services

Special Coverage: National Prostate Cancer Awareness Month

There are a wide variety of treatment options available for men with prostate cancer. The most technologically advanced treatment option in the Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform.
...
Marysville Police Department

Police Opportunities in a Growing, Supportive Washington Community

Marysville PD is looking for both lateral and entry level officers. Begin or continue your career in law enforcement for a growing, supportive community.
...
Comcast

Small, Minority-Owned Businesses in King County and Pierce County Can Now Apply For $10,000 Relief Grants Through Comcast RISE

Businesses in King County and Pierce County can apply beginning on October 1, 2021, at www.ComcastRISE.com for a chance to receive a $10,000 relief grant.
Courtesy of JWatch Photography....
Experience Anacortes

Summer Fun Activities in Anacortes

With minimal travel time required and every activity under the sun, Anacortes is the perfect vacation spot for all ages.
Union Pacific Q2 profit jumps 59% as volume grows 22%