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UP Rocked By Weak Coal, Flooding

UP Rocked By Weak Coal, Flooding

(AP) _

Union Pacific predicts its third-quarter profit will fall short Wall Street's expectations because of weak coal shipments and last month's flooding in Colorado.

The Omaha-based railroad said Thursday the flooding that washed out rail lines while destroying thousands of homes hurt volume and will cost the railroad $10 million for repairs and lost revenue.

Union Pacific says it expects its quarterly earnings to fall between $2.45 and $2.48 per share. It will report full results October 17th.

Analysts surveyed by FactSet expected UP to report earnings of $2.56 per share.

Its shares fell $2.28, or 1.5 percent, to $153.10 in after-hours trading Thursday.

Union Pacific says its revenue grew about 4 percent and core prices increased 3.5 percent. The railroad's shipping volume was flat overall.

 

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