Union Pacific Corp. posted profits below analysts’ estimates for the first time in four years on West Coast port backups and a weak demand for coal.
Both Union Pacific and BNSF Railway suffered from the gridlock at U.S. West Coast ports, due in part to labor negotiations. Concerned that a strike might erupt, many Asian shipping companies diverted to Canadian ports at Vancouver and Prince Rupert or sent vessels through the Panama Canal to the U.S. East Coast.
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Union Pacific’s earnings of $1.30 a share missed the $1.37 average of 26 analysts polled by Bloomberg. The average had fallen from as high as $1.45 last month after weekly carload data showed more weakness than expected. Sales of $5.61 billion also missed the average projection of $5.72 billion.
For more of the Bloomberg story: www.bloomberg.com
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