Union Pacific Q4 Preview: Lower Fuel Expenses To Partially Offset Impact Of Top Line Headwinds

We expect the weakness in the company?s shipment volumes, especially coal shipments, to adversely impact its top line. According to Union Pacific?s carload report for the fourth quarter, the company?s shipment carloads, including intermodal shipments, declined 9% year-over-year, with coal carloads declining around 24%. Besides the decline in shipments, the weakness in diesel prices will negatively impact Union Pacific?s fuel surcharge revenues. However, lower fuel expenses will offset most of th...