Nebraska: Union Pacific's first-quarter profit fell 15% year-on-year as low energy and commodity prices continued to be a drag on American rail roads.
Pacific reported earnings of $979 million, down from $1.16 billion achieved in the same period of the previous year. Revenue also slumped by 14% to $4.83 billion.
Weak demand for coal as American electricity utilities switch to natural gas has been one of the main factors behind the decline in revenue. The company reported that coal shipments declined 34% year-on-year.
In the face of this difficult environment, the company reduced its CAPEX plans for 2016 to $3.675 billion, down $75 million.
QNA
