Coal pricing drives Union Pacific Q3 revenue despite fall in carloads: company | S&P Global Platts

Houston — Coal pricing has been a primary factor driving revenue growth in the Union Pacific’s third quarter earnings despite a 3% fall in coal and coke carloads, railroad executives said Thursday.

In addition, increased fuel surcharge revenue along with a 6% increase in volume were primary drivers of revenue growth, Robert Knight, UP VP and CFO, said on the investor earnings call Thursday.
Knight went on to add, however, that “pricing continues to be a challenge in our coal and international intermodal markets.”

UP’s net income totaled $1.6 billion in Q3, up 33% from $1.2 billion in the year-ago quarter, and creating an all-time quarterly record increase for the railroad.

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Coal pricing drives Union Pacific Q3 revenue despite fall in carloads: company | S&P Global Platts.