NEW YORK (AP) ? Union Pacific Corp., the nation's largest railroad, said Thursday its third-quarter earnings rose 16 percent as higher prices offset slower growth in shipments and higher fuel costs.
The nation's largest railroad also said it expects its business to continue to grow despite an uncertain view for the broader U.S. economy.
The Omaha, Neb., company earned $904 million, or $1.85 per share between June and September. That's up from $778 million, or $1.56 per share, a year ago.
Revenue rose 16 percent to $5.1 billion. Fuel prices jumped 42 percent in the three-month period, while total operating expenses rose 17 percent. Severe heat and extended drought conditions in Texas damaged large sections of track during the summer.
FactSet says analysts predicted a profit of $1.81 per share on revenue of $5.03 billion.
Shipping volume grew 1 percent in the period. The volume of cars and car parts transferred on its lines grew the most of any category, rising 10 percent. Shipments of agricultural products and intermodal goods both fell. Intermodal shipments are those that are transferred between trains and another method of transportation, like trucks or ships. Those shipments are mostly made up of consumer products, so they're vulnerable to swings in Americans' buying habits.
Revenue increased in all six shipping categories as the railroad charged more for its services. Higher shipping prices can trickle down to consumers because transportation costs are among the largest expenses for retailers. Railroads carry many goods consumers rely on every day, including coal for electricity, food and a variety of goods shipped in from overseas like televisions and electronic gadgets.
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