WEB Notes: All indicators are pointing to a slow down in the global economy. Shipping is down, rail is down and of course China is collapsing. Let me ask you what builds China’s economy? Producing the trash most of us buy in the stores. If their economy is collapsing and no ships are traversing the seas and rails movement is down that should tell you no one is buying the goods from China, at least there is a large reduction in demand.
Union Pacific Corp.’s fourth-quarter profit fell 22 percent as the railroad hauled 9 percent less freight and worked to cut costs to match the reduced demand.Its shares fell almost 5 percent in premarket trading Thursday.
The Omaha, Nebraska-based railroad said its net income fell to $1.1 billion, or $1.31 per share, in the quarter. That’s down from last year’s $1.4 billion, or $1.61 per share.
The 12 analysts surveyed by Zacks Investment Research expected earnings of $1.42 per share on average.
Union Pacific says its revenue fell 15 percent to $5.2 billion in the quarter. That’s also below the $5.54 billion analysts expected.
The railroad reduced its costs 13 percent to $3.29 billion, but it wasn’t enough to offset the reduced revenue. Union Pacific finished the year with about 44,490 workers, down 7 percent from the previous year.
Union Pacific Chairman and CEO Lance Fritz said he doesn’t think the economy is nearing a recession, but shipping volume has fallen dramatically, especially in energy products and exports.
Fritz said he expects the economic uncertainty and strong U.S. dollar will continue to affect the railroad’s business this year. Union Pacific expects total volume will be down slightly in 2016.
Union Pacific plans to invest $3.75 billion in capital projects and equipment this year, down from the $4.3 billion it spend in 2015.
Edward Jones analyst Logan Purk said the quarterly results fell well short of expectations, and investors should expect railroad struggles to continue this year.
“I think we’ll probably see more of this for a couple quarters as Union Pacific tries to align resources with demand,” Purk said.
The railroad’s stock fell $4.35, or 5.9 percent, to $69.26 in morning trading Thursday.
Union Pacific shares have fallen nearly 6 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined 9 percent. The stock has dropped 35 percent in the last 12 months.
Union Pacific operates 32,400 miles of track in 23 states from the Midwest to the West and Gulf coasts.
Source: Union Pacific 4Q Profit Falls 22 Pct as Freight Volume Slows – ABC News
Oh, boo, hoo , hoo. Wallyworld’s profits plummeting, Menard’s and Lowe’s, and Home Depot can’t sell their worthless Chinese junk anymore! Oh, Boo, hoo, hoo! It couldn’t happen to a nicer bunch of assholes!
Everyone should prepare to be on your own and be as self sufficient as possible. The time will come when your efforts will pay off. I feel fortunate to have grown up learning canning and pickling and gardening which is quite rewarding in and of itself. Either way, what does one lose in preparing for the future?
U. P still made a significant amount of money..
Profit fell.
Most people would think that the U. P actually lost money in the 4th quarter.