Union Pacific Corp.

Union Pacific cost cuts offset declining shipments in 4Q

Union Pacific's fourth-quarter profit grew 2 percent as the railroad cut costs to offset a 3 percent decline in shipments.

Net income reached $1.14 billion, or $1.39 per share, well above the per-share earnings of $1.34 that Wall Street was looking for, according to a survey by the data company Zacks Investment Research.

Revenue declined 1 percent to $5.17 billion, but that was also better than the $5.14 billion analysts expected.

The railroad reduced its expenses 3 percent to $3.2 billion in the quarter in response to the slower shipping volume.

Union Pacific Chairman and CEO Lance Fritz said higher energy prices, favorable agricultural markets and improving...