Union Pacific Q4 profit up 24% despite weak rail volume

Union Pacific hauled in 24% more profit in the fourth quarter even though supply chain problems and weak auto production continued to slow shipments because last year's results were weighed down by a one-time $278 million charge

OMAHA, Neb. -- Union Pacific hauled in 24% more profit in the fourth quarter despite supply chain problems and weak auto production, but that is also compared with a period last year that included a one-time $278 million charge.

The Omaha, Nebraska, railroad on Thursday posted earnings of $1.71 billion, or $2.66 per share, in the last three months of 2021. That's up from $1.38 billion, or $2.05 per share, a year earlier. Without last year's charge, the railroad's profit would have been up 8% over the 2020 quarter's adjusted results of $1.6 billion, or $2.36 per share.

Union Pacific hauled 4% less freight in the fourth quarter as the computer chip shortage continued to hurt auto production and supply chain problems cribbed shipments of imported containers of goods. The railroad also wrestled with crew shortages as COVID-19 spread through its workforce.

But the results exceeded Wall Street expectations of $2.60 per share, according to a survey by the data company Zacks Investment Research.