Apr 23, 2020

Union Pacific predicts 25% drop in volume because of virus

Posted Apr 23, 2020 2:28 PM

OMAHA, Neb. (AP) — Union Pacific’s first-quarter profit improved 6%, but the railroad expects shipping volume to plummet 25% in the second quarter because of the ongoing coronavirus outbreak.

The railroad said Thursday it earned $1.47 billion, or $2.15 per share, in the first quarter. That’s up from $1.39 billion, or $1.93 per share, a year ago.

The results topped Wall Street expectations.

Union Pacific said the number of carloads of freight it delivered in the first quarter fell 7%, but volume has declined sharply since then as automakers closed their plants and other manufacturers slowed production because of the virus outbreak.