Union Pacific Shares Slip; Sees Margin Pressure from Fuel Prices, Inflation

By Michael Dabaie

Union Pacific Corp. said fuel prices and inflation will pressure incremental margins, weighing on its shares in premarket trading.

Its shares were 2.3% lower at $220 premarket.

In a Securities and Exchange Commission filing, the railroad and freight transportation services company said that Chief Financial Officer Jennifer Hamann and Kenny Rocker, executive vice president of marketing and sales of Union Pacific Railroad, on Tuesday addressed the 2022 UBS Global Industrials and Transportation Conference.

Ms. Hamann reaffirmed the company expects to achieve fiscal 2022 operating ratio improvement compared with fiscal 2021 results. However, she said the increased pressure from fuel prices and other cost inflation, as well as higher network costs, will pressure incremental margins below the original forecast of mid-60%.

The company now expects all-in inflation, excluding locomotive fuel, for the full year to be about 4%, the company said.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

06-07-22 0912ET