Union Pacific 3Q profit falls 13 percent as shipments slow

Markets Associated Press

FILE - In this July 15, 2013, file photo, Union Pacific Railroad locomotives sit on a track in a rail yard in Phoenix. Union Pacific reports financial results Thursday, Oct. 20, 2016. (AP Photo/Ross D. Franklin, File)

FILE - In this July 15, 2013, file photo, Union Pacific Railroad locomotives sit on a track in a rail yard in Phoenix. Union Pacific reports financial results Thursday, Oct. 20, 2016. (AP Photo/Ross D. Franklin, File) (The Associated Press)

Union Pacific profit fell 13 percent in the third quarter as the railroad hauled 6 percent less freight and coal demand continued to plummet.

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The Omaha, Nebraska, based railroad said Thursday that it earned $1.13 billion, or $1.36 per share. That's down from $1.3 billion, or $1.50 per share.

The 13 analysts surveyed by Zacks Investment Research expected earnings of $1.39 per share on average.

The railroad's revenue declined 7 percent to $5.17 billion in the quarter from $5.56 billion. The six analysts surveyed by Zacks expected $5.14 billion.

Union Pacific CEO Lance Fritz says the grain and energy segments of the economy are improving although the challenges of a strong dollar and weak demand for consumer goods continue.

In premarket trading, Union Pacific's stock fell $1.72, or 1.8 percent, to $95.40 Thursday morning.

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Union Pacific shares have increased 24 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed roughly 5 percent. The stock has risen nearly 5 percent in the last 12 months.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UNP at http://www.zacks.com/ap/UNP

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Keywords: Union Pacific, Earnings Report, Priority Earnings