Jul 22, 2016 at 04:32 PM CST
Following double-digit dives in profit and revenue in the second quarter, Union Pacific Railroad said Thursday that despite shippers pulling down inventory, it doesn’t expect the soft freight economy to improve until at least 2017 now.
“I think if you look at the absolute volumes, they are not strong,” Eric Butler, UP’s executive vice president and chief marketing officer, said on an earnings conference call with analysts and investors Thursday morning.
Intermodal freight traffic was down 14 percent year-over-year in the second quarter, contributing to a 16 percent decline in related revenue, which rounded out the quarter at $909 million, the railroad reported.
It also contributed to a 19 percent year-over-year decline in profit. The railroad’s net income for the quarter was $979 million. Meanwhile, overall revenue also fell some 12 percent to $4.77 billion.