Union Pacific rate hikes push railroad's Q1 profit up 22%

Union Pacific hauled in 22% more profit during the first quarter because it charged more and delivered 4% more shipments even as it struggled to clear up congestion along its rail network

OMAHA, Neb. -- Union Pacific hauled in 22% more profit during the first quarter because it charged more and delivered 4% more shipments even as it struggled to clear up congestion along its rail network.

The Omaha, Nebraska, railroad said Thursday it earned $1.6 billion, or $2.57 per share, in the quarter. That's up from $1.3 billion, or $2 per share, a year ago.

The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $2.55 per share.

Union Pacific's Chairman, President and CEO Lance Fritz said the railroad delivered solid financial results but failed to meet customer expectations for service. Federal regulators plan to hold a hearing next week after several groups of shippers complained about delayed deliveries that disrupted their business.