Union Pacific cuts 2021 volume, operating ratio growth forecast -Breaking
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(Reuters) – Union Pacific Corp (NYSE 🙂 lowered its full year forecast for volume growth and operating ratio on Wednesday as supply chain issues put pressure on U.S. railroad operators’ volumes.
According to a regulatory filing by the Nebraska-based company it said that 2021 volumes will grow approximately 4% from the roughly 5% growth it predicted in October. The company had previously forecasted a volume increase of around 7% in October.
Union Pacific’s key revenue driver, intermodal and automobile shipments have been affected by supply chain problems like logjams in ports, chip shortages and truck driver delays.
The operating ratio is a critical metric for profitability and will rise by approximately 150 basis points. This compares to the 175 points Union Pacific forecasted earlier.
Union Pacific’s shares traded flat during the afternoon session. The company operates in 23 states, and provides connectivity between East Coast ports and key terminals, such as Chicago.
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