Cargo Business Newswire

Monday, April 27, 2015

UP first quarter profits below expectations

Union Pacific Corp. posted profits below analysts’ estimates for the first time in four years on West Coast port backups and a weak demand for coal.

Both Union Pacific and BNSF Railway suffered from the gridlock at U.S. West Coast ports, due in part to labor negotiations. Concerned that a strike might erupt, many Asian shipping companies diverted to Canadian ports at Vancouver and Prince Rupert or sent vessels through the Panama Canal to the U.S. East Coast.

Union Pacific’s earnings of $1.30 a share missed the $1.37 average of 26 analysts polled by Bloomberg. The average had fallen from as high as $1.45 last month after weekly carload data showed more weakness than expected. Sales of $5.61 billion also missed the average projection of $5.72 billion.

For more of the Bloomberg story: www.bloomberg.com