Union Pacific 4Q profit falls 22 pct as freight volume slows

(AP) — Union Pacific Corp.'s fourth-quarter profit fell 22 percent as the railroad hauled 9 percent less freight, and officials predicted difficult conditions would persist this year.

The Omaha, Nebraska-based railroad said its net income fell to $1.1 billion, or $1.31 per share, in the quarter.

Union Pacific Chairman and CEO Lance Fritz said he doesn't think the economy is nearing a recession, but shipping volume has fallen dramatically, especially in energy products and exports.

Coal, which was down 22 percent in the fourth quarter, will continue to be challenged by low natural gas prices and inventory levels at utilities, Fritz said.

Crude oil shipments, and deliveries of sand and pipe related to hydraulic fracturing mining will remain depressed as long as oil prices stay in the cellar.