OMAHA, NE: Union Pacific (UP) has reported Q3 net income of US$1.3 billion compared to US$1.4 billion in the same period last year.
Operating revenue of US$5.6 billion was down 10 percent compared to the 2014 third quarter. Traffic volume, as measured by total revenue carloads, declined 6.0 percent in the period.
Lance Fritz, UP chairman, president and chief executive officer commented: "We've made great progress in meeting this year's challenges. As we finish 2015 and head toward next year, we continue to face many uncertainties. Energy prices, the consumer economy, grain markets and the strength of the U.S. dollar will all be key to future demand."
Revenue for the first nine months of 2015 totaled US$16.6 billion – down seven percent compared to the same period last year. Net income fell 3.0 percent to US$3.65 billion.
UP said volumes declined in each of its business sectors except automotive which remained flat. Agricultural products fell 4.0 percent; chemicals were down 6.0 percent; intermodal dropped 11.0 percent; while industrial products and coal fell 16.0 percent and 18.0 percent respectively.
UP connects 23 states in the western two-thirds of the U.S. and is the only railroad serving all six major Mexico gateways. The company is investing US$90 million to expand its Port Laredo intermodal ramp where US$280 billion in annual trade with Mexico passes through the Laredo Customs District, making Laredo the main port of entry on the U.S.-Mexico border and the No. 2 U.S. port.