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Union Pacific Reduces 2021 Volume, Operating Ratio Growth Forecast

A Union Pacific rail car is parked at a Burlington Northern Santa Fe (BNSF) train yard in Seattle, Washington, U.S., February 10, 2017.  REUTERS/Chris Helgren

Dec. 1 (Reuters) – Union Pacific Corp (UNP.N) cut its full-year volume and operating ratio growth forecast on Wednesday as supply chain bottlenecks pressurize on the volumes of the American rail operator.

The Nebraska-based company, in a regulatory filing, said it expects 2021 volumes to increase by about 4% from about 5% growth it forecast in October. He had forecast volume growth of around 7% earlier in the year.

Union Pacific’s intermodal and auto shipments, which are key revenue drivers, have been hit by supply chain issues, such as congestion at ports, truck drivers and chip shortages. Read more

The operating ratio, a key indicator of profitability, is expected to increase by about 150 basis points, down from the 175 points Union Pacific had forecast earlier.

Shares in Union Pacific, which operates in 23 states and connects east coast ports to key terminals like Chicago, slashed gains to trade roughly flat in the post-session. midday.

Our Standards: Thomson Reuters Trust Principles.

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