(Reuters) -U.S. railroad operator Union Pacific reported a 9% rise in third-quarter profit on Thursday, as higher shipments and price hikes offset declines in coal freight volumes. The company’s net income rose to $1.67 billion, or $2.75 per share, in the quarter, from $1.53 billion, or $2.51 per share, a year earlier.
The Omaha-Nebraska based company benefited from higher grain and intermodal volumes, which were led by a strong harvest season and higher west coast imports.
The railroad has said it handled record intermodal volumes in August at the ports of Los Angeles and Long Beach as shippers shifted freight to the west coast, keeping in mind the strikes at the U.S. east and gulf coast ports.
The company reported an operating ratio of 60.3% for the third quarter, an improvement from 63.4% a year earlier. The ratio is a keenly watched metric that indicates operating expenses as a percentage of revenue.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Shinjini Ganguli and Shailesh Kuber)
