Rail giant Union Pacific posted third-quarter numbers that beat Wall Street estimates. That’s good for the company. The message for the overall economy isn’t as positive.
It’s a quarterly earnings beat, but sales and earnings are down year over year because pricing and volumes have been down. Bulk shipments of things such as fertilizer and grain fell 4% year over year while average revenue per carload dropped 6%. Industrial carloads were flat while revenue per carload was down 6%. Shipments of vehicles and other retail goods fell 4% with average revenue per carload off 9%.
Despite falling sales, Union was able to raise pricing amid higher inflation. Some of the revenue declines reflect lower fuel prices, which are passed through to customers. Still, the overall picture is one of a relatively weak economy. It isn’t great news for the broader economy. Following logistics is like conducting a blood test on the economy. The patient isn’t feeling well. In this environment, Union Pacific is focused on managing costs and gaining efficiencies where it can.
Belgique Dernières Nouvelles, Belgique Actualités
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