Railroad Earnings Drive Shares Lower Friday, October 23, 4:06 PM ET
Union Pacific (NYSE:UNP) and Burlington Northern Santa Fe (NYSE:BNI) reported earnings, and shares of both companies fell on Friday. At Union Pacific, net income plunged 26%, to a dollar and 2 cents per share. That's compared to a dollar 38 in the same quarter last year. Revenue was down 23%, as the effects of the recession led to a decline in rail traffic. Looking ahead, the company said its volumes are at very low levels but have stabilized. A bright spot in the report was an all-time high in customer satisfaction, with a reading of 88 on the company's customer satisfaction index. Union Pacific shares fell 6.4% on Friday.
And shares of Burlington Northern Santa Fe fell 7%, after earnings fell just under 29% year over year to a dollar 42 per share. The company had earned a dollar 99 in the same quarter last year. Freight revenues fell just under 27% year over year, but operating expenses also showed a 27% decline. Looking ahead, the company said it is in a strong position when the economy recovers.
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