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The company benefited from sustained price hikes amid strong demand for automotive and intermodal shipments, which helped it offset a blow from supply chain snags, labor shortages and higher fuel prices in the reported quarter.
“Our network fluidity improved through the quarter and we are positioned to grow volumes in the back half of 2022” Chief Executive Officer Lance Fritz said.
Union Pacific’s volumes rose 1% in the quarter, while its operating ratio, a key profitability metric, worsened to 60.2% from 55.1%.
The company lowered its outlook for full-year operating ratio to 58% from 55%, after the railroad operator last month warned of missing its annual margin targets due to staffing shortages and adverse weather.
Union Pacific’s net income rose to $1.83 billion, or $2.93 per share, in the second quarter, from $1.79 billion, or $2.72 per share, a year earlier.
On an adjusted basis, the company earned $2.93 per share, compared with estimates of $2.86 per share according to Refinitiv data.
Total operating revenue was $6.27 billion, compared with estimates of $6.12 billion.
Union Pacific’s shares were marginally higher at $215.55 in premarket trading.
