Union Pacific's 1Q profit falls 15 percent as volume slows

(AP) — Union Pacific's first-quarter profit fell 15 percent, hit by a steep decline in the amount of freight hauled due to weak energy and commodity prices.

Weak coal demand continues to be a challenge for all the major railroads as utilities switch to natural gas because of low costs and environmental regulations.

Union Pacific Corp. said coal shipments fell 34 percent in the quarter, but there were also declines in shipments of industrial products, agricultural crops and intermodal containers.

The overall economy continues to grow but that's obscured in the railroad results by the weak demand for coal, shipments related to shale mining and exports.