OMAHA, Neb. - Union Pacific's (UNP) second-quarter profit fell 19 percent as the railroad hauled 11 percent less freight.
CEO Lance Fritz said Thursday that volumes are likely to remain weak through the rest of the year because of the soft global economy, strong U.S. dollar and weak consumer demand.
Its shares fell more than 3 percent in premarket trading.
The Omaha, Nebraska-based company reported net income of $979 million, or $1.17 per share. That's down from $1.2 billion, or $1.38 per share, a year ago.
The 14 analysts surveyed by Zacks Investment Research predicted earnings of $1.17 per share on average.
The railroad's revenue declined 12 percent to $4.77 billion. Five analysts surveyed by Zacks expected $4.79 billion.
Union Pacific said shipments slowed in every category except agricultural goods. Coal again led the declines with a 21 percent drop in shipments.
Union Pacific shares fell $3.22, or 3.4 percent, to $90.90 in premarket trading about a half-hour ahead of the market open. Its shares have increased 20 percent since the beginning of the year, while the Standard & Poor's 500 index has increased slightly more than 6 percent. The stock has decreased slightly more than 4 percent in the last 12 months.