Rail transportation provider Union Pacific Corp. (UNP) is on track to issue first-quarter grade card before market opens on April 23, with analysts forecasting earnings of $0.66 per share on revenues of $3.55 billion, lower than the previous year's earnings of $1.70 per share and revenues of $4.3 billion.
As the recession has taken its toll on almost all sectors, the economy is further tapering off affecting railroad demand significantly as well in the first quarter. For the first three months of 2009, total U.S. rail carloadings were down 16.3% to 3.25 million carloads, the Association of American Railroads or AAR reported.
AAR Senior Vice President John Gray said, "A blizzard in the Wyoming coal fields, flooding in the Midwest, and other weather-related problems added a 'kick them when they're down' element to the month, dropping already-depressed rail traffic levels even further in March."
For the preceding fourth quarter, the Omaha, Nebraska-based railroad operator reported a 35% rise in its fourth-quarter profit, driven by higher productivity and lower fuel costs. Operating revenues rose 2% in the quarter. For fiscal 2009, the company said it expects to "deliver an even higher level of performance."
Fourth-quarter net income totaled $661 million or $1.31 per share, higher than $491 million, or $0.93 per share, reported in the previous year. Operating revenues were $4.29 billion in 2008, up from $4.2 billion in the fourth quarter of 2007.
Most recently, the U.S. government has filed two lawsuits against Union Pacific Railroad Co., a subsidiary of Union Pacific Corp., for purportedly failing to avert the use of its rail cars to smuggle large quantities of narcotics into the country. In the litigation filed in San Diego and Houston, the government has claimed cash penalty of above $37 million.
Among others in the sector, Union Pacific's larger rival Burlington Northern Santa Fe Corp. (BNI) has reported a nearly 19% rise in its fourth-quarter profit, helped by higher freight revenues on improved yields and higher fuel surcharges. Net income for the quarter was $615 million, or $1.79 per share, compared with $517 million, or $1.46 per share, a year ago. Total operating revenues, including freight revenues and other revenues, rose to $4.37 billion from $4.24 billion in the same period last year. The company would report first-quarter results on April 23, with analysts expecting earnings of $0.97 per share on revenues of $3.69 billion.
Canadian National Railway Co. (CNI) posted improved first quarter earnings, helped by a gain on the sale of Weston subdivision. Owing to current economic conditions, transportation volumes dropped in almost all markets resulting in overall 4% decline in revenues year-on-year. However, revenues as well as earnings topped Street expectations.
Montreal, Canada-based company's net income rose to C$424 million or C$0.90 per share for the quarter from C$311 million or C$0.64 per share in the prior-year period. Quarterly revenues declined 4% to C$1.859 billion from C$1.927 billion in the previous year.
CSX Corp. (CSX) witnessed a downturn in its first quarter profit, hit by lower volumes, as construction and consumer-related markets remained weak. However, the company's quarterly earnings, on a comparable basis, came in above the analysts' expectations, due to various productivity initiatives.
Jacksonville, Florida-based CSX reported first quarter earnings of $246 million or $0.62 per share, down from $351 million or $0.85 per share in the prior year quarter. Revenues declined 17% to $2.25 billion from $2.71 billion the same quarter of the previous year.
Union Pacific shares, which have been trading between $33.28 and $85.80 in the past 52 weeks, closed Wednesday's trading session at $47.72, up 72 cents or 1.53%, on a volume of 8.49 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.