Union Pacific’s first-quarter profit creeps up 1% as railroad limits expenses

OMAHA, Neb. – Union Pacific’s first-quarter profit crept 1% upper as the railroad tightened up on expenses — specifically its gas invoice — even supposing it delivered fairly much less freight.

The Omaha, Nebraska-based railroad mentioned Thursday it made $1.64 billion, or $2.69 in line with proportion. That’s upper than remaining yr’s $1.63 billion, or $.2.67 in line with proportion. Shipping quantity used to be down 1% within the quarter.

The analysts surveyed by means of FactSet Research had been anticipating income of $2.51 in line with proportion.

“These results build on the momentum we established as we exited 2023 and provide further proof of what’s possible as we strive to be the best in safety, service and operational excellence,” CEO Jim Vena said.

The railroad’s revenue was hurt by a drop in fuel surcharge revenue as fuel prices fell. Union Pacific said it generated $6.03 billion in revenue, down slightly from last year’s $6.06 billion. But that was better than the $5.974 billion that analysts expected.

Union Pacific was able to hold down expenses 3% at $3.66 billion. That included a 14% drop in fuel expenses to $658 million in the quarter.

The railroad said its quarterly results have it feeling more optimistic about profit growth this year even though it still expects volume growth to be muted after losing some international intermodal business and its expectation for lower coal shipments. So Union Pacific plans to restart its stock repurchases in the second quarter.

UP is among the country’s greatest railroads with greater than 30,000 miles of observe crisscrossing 23 Western states.