Union Pacific reported a 7% growth in its second-quarter profit, reaching $1.67 billion or $2.74 per share. This increase was achieved despite the railroad hauling essentially the same number of shipments, thanks to ongoing efforts to streamline operations. The company's CEO, Jim Vena, credited the success to the strategy of prioritizing safety, service, and operational excellence.
The company's revenue for the quarter surpassed $6 billion, marking a 1% growth. This growth was supported by Union Pacific's ability to raise rates sufficiently to offset declines in coal and metals shipments, as well as lower fuel surcharge revenue. Coal shipments were down 22%, while metals shipments fell by 12%. However, overall volume saw a slight increase.
Union Pacific's focus on efficiency was evident in its operational metrics, with the average maximum length of trains increasing by 2% to 9,544 feet. Productivity also improved by 5% to 1,031 car miles per employee. The company expressed confidence in its ability to improve profits, despite uncertainties regarding future volume trends.
The railroad company remains committed to its goal of buying back approximately $1.5 billion of stock this year. Union Pacific, which operates trains across 23 states in the western United States, emphasized the dedication of its team to driving success and continuous improvement.
