UP 1Q earnings rise 24%
Written by William C. Vantuono, Editor-in-ChiefUnion Pacific Corp. Wednesday reported first-quarter earnings of $639 million, or $1.29 per share, up nearly 24% from $516 million, or $1.01 per share, in the first quarter of 2010.
But those solid results still fell short by two cents of Wall Street analysts’ expectations of $1.31 per share, attributed in part to rising fuel prices and severe winter weather in UP’s service territory. Shares of UP were down as much as 1.4% in late afternoon trading Wednesday on the New York Stock Exchange.
UP said fuel prices in particular shaved 8 cents a share off anticipated earnings. The company took advantage of commodity-shipping volume growth “despite spiking fuel prices and winter weather challenges across most of the nation’s rail network,” Chief Executive Officer Jim Young said in a statement. “The economy is showing signs of continued,gradual improvement, and we’re optimistic about the growth opportunities ahead.”
Revenue rose to $4.5 billion from $4.0 billion a year ago, with volume growth across all six of its business units for the fourth consecutive quarter.
