(Reuters) - Railroad operator Union Pacific Corp reported a lower-than-expected quarterly profit, as freight volumes of agricultural products and energy shipments fell.
Continue Reading Below
Last year, the company cut capital spending and jobs, as the U.S.-China trade war worsened the industry-wide slump in freight volumes.
Union Pacific's operating ratio, a measure of operating expenses as a percentage of revenue and a key metric for Wall Street, fell 1.9 points to 59.7% in the fourth-quarter ended Dec. 31, from a year earlier.
|UNP||UNION PACIFIC CORPORATION||181.72||-1.68||-0.92%|
A lower ratio means higher profitability for railroads.
The Omaha, Nebraska-based company's net quarterly income fell to $1.40 billion, or $2.02 per share, from $1.55 billion, or $2.12 per share, a year earlier.
Total operating revenue fell 9.5% to $5.21 billion.
Analysts on average expected a quarterly profit of $2.04 per share and revenue of $5.22 billion, according to IBES data from Refinitiv.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Vinay Dwivedi)