Union Pacific’s profit rose, as job reductions and lower fuel expenses helped offset weaker demand for carrying freight by rail
By Paul Ziobro Updated July 18, 2019 1:58 pm ET Union Pacific Corp. UNP 5.20% ’s second-quarter profit rose even as it shipped less cargo, as the railroad operator got a boost from cost cuts tied to its new operating plan, including fewer jobs and lower fuel expenses.
Union Pacific is in the midst of a significant overhaul where it is running fewer, longer trains, sorting railcars less frequently and reworking operations across its network. Other freight railroads, including Norfolk Southern Corp. NSC 2.34% and Kansas City Southern , KSU 0.29% are on similar paths, mirroring the changes that CSX Corp. CSX -0.16% made on its network in recent years.
Union Pacific’s operating revenue declined 1% to $5.6 billion in the second quarter as shipping volume fell 4%. But operating expenses fell 7% as the company reduced its workforce by 8%, or about 3,500 people, from a year earlier. Profit rose 4% to $1.57 billion, or $2.22 a share, from $1.51 billion, or $1.98 a share, a year earlier.
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