UP SAYS HIGH COSTS MAKE SECOND-HALF RECOVERY DOUBTFUL
Union Pacific Corp. said continued high fuel costs, in conjunction with a slowing U.S. economy, have made a second-half recovery unlikely.
“We're becoming less certain that we'll see a significant recovery in the second half. Fuel costs continue to be a challenge,” said Richard Davidson, UP's chief executive officer.
The company looks to improve fuel efficiency by 10 to 15 percent by purchasing 1,700 new railcars.
Shares of Union Pacific closed at $57.70 Tuesday, down $3 from its 52-week high of $60.70.