Overview
- Union Pacific reported stronger-than-expected second-quarter results on Thursday, with net income of $2.0 billion, adjusted diluted earnings per share of $3.41 and revenue up about 12% to $6.86 billion.
- Norfolk Southern posted record quarterly revenue of $3.5 billion and adjusted EPS of $3.52, reflecting rising freight volumes and higher fuel surcharges that together lifted top-line results.
- The Surface Transportation Board paused parts of its review of the proposed $85 billion merger and ordered supplemental competitive and employee-impact materials to be filed by July 27, putting the environmental review on hold.
- Union Pacific struck a deal with Canadian National that gives CN expanded corridor access and local asset transfers in places such as St. Louis and Kansas City, and CN agreed to withdraw formal objections to the merger.
- Operating costs are rising sharply, with Union Pacific's fuel expense up 63% year over year to $938 million, and rival carriers, shippers and labor groups warn the merger could concentrate more than 40% of U.S. rail traffic and reduce competition, which could raise rates and change routing options for businesses and workers.