UP Lowers Fourth-Quarter Earnings Forecast

Union Pacific Corp. cut its earnings forecast for the fourth quarter, citing higher diesel fuel costs and a delay in recovering its fuel surcharges.

The western freight railroad lowered its fourth-quarter earnings prediction to a range of $1.70 to $1.80 per share, compared with an earlier forecast of $1.90 to $2 per share.

For the full year, the railroad said its full-year profit will be $6.76 to $6.86 per share.

 “Despite these near-term challenges, Union Pacific’s long-term opportunities remain strong as our productivity and service initiatives continue to gain momentum,” said Jim Young, UP’s chairman and chief executive officer.

UP said that severe winter storms this month hampered operations and contributed to a drop in car loadings.