<figure>
 <img src="https://media.eaglewebservices.com/public/2024/4/1714141645381.jpeg" alt=" A Union Pacific worker walks between two locomotives that are being serviced in a railyard in Council Bluffs, Iowa, on Dec. 15, 2023. Union Pacific reports earnings on Thursday, April 25, 2024. (AP Photo/Josh Funk)" />
 <figcaption> A Union Pacific worker walks between two locomotives that are being serviced in a railyard in Council Bluffs, Iowa, on Dec. 15, 2023. Union Pacific reports earnings on Thursday, April 25, 2024. (AP Photo/Josh Funk)</figcaption>
 </figure>OMAHA, Neb. (AP) — Union Pacific's first-quarter profit crept 1% higher as the railroad tightened up on expenses — particularly its fuel bill — even though it delivered slightly less freight.The Omaha, Nebraska-based railroad said Thursday it made $1.64 billion, or $2.69 per share. That's more than&nbsp;<a href="https://apnews.com/article/union-pacific-railroad-first-quarter-earnings-economy-bf63a5eeadb902e901b8aed4d8975ff9">last year's $1.63 billion</a>, or $.2.67 per share, even though last year's numbers were helped by a 14-cent gain on a real estate sale. Shipping volume was down 1% in the quarter.The analysts surveyed by FactSet Research were expecting earnings of $2.51 per share.“When I look at how we’re performing, I see improvement across the board,” CEO Jim Vena said. “The network is operating fluidly and efficiently, allowing us to meet the demand in the market. And that drove the financial success.”The railroad's revenue was hurt by a drop in fuel surcharge revenue as fuel prices fell. Union Pacific said it generated $6.03 billion in revenue, down slightly from last year's $6.06 billion. But that was better than the $5.97 billion that analysts expected.Union Pacific was able to hold down expenses 3% at $3.66 billion. That included a 14% drop in fuel expenses to $658 million in the quarter as diesel prices fell and the railroad improved its fuel efficiency a bit.Vena&nbsp;<a href="https://apnews.com/article/union-pacific-railroad-ceo-jim-vena-06b2fbdf515e7f5aa8d82c0b2cafbc88">became CEO</a>&nbsp;last summer after&nbsp;<a href="https://static1.squarespace.com/static/60ad6c502b44e43fe7a303b9/t/63fbc01f43115a3c065fa353/1677443103154/Soroban+-+Letter+to+Union+Pacific%27s+Board+of+Directors.pdf">investors pressured</a>&nbsp;Union Pacific to replace its last leader. Its improved performance showed up in the quarter in the form of slightly longer trains — reaching an average of 9287 feet (2,831 meters) in the quarter — a 4% increase in freight car velocity, 4,000 fewer times railcars needed to be switched between trains, and better performance on what shippers want.Some UP customers want the railroad to deliver their shipments faster while some don't care as much about speed and are more concerned about getting consistent deliveries. But the railroad is working to improve on both fronts.“You always try to optimize the network operationally and look for ways to be able to drive efficiencies in the network. But the base plan always is, what did we sell to customers? What did we tell the customers we’re going to deliver? And make sure that that’s the base plan. And from that you build it up,” Vena said.Edward Jones analyst Jeff Windau said the results showed “solid improvement in operational and efficiency metrics.” That will give the railroad a strong foundation for future profits when the number of shipments increases.Union Pacific said its quarterly results have it feeling more optimistic about profit growth this year even though it still expects volume growth to be muted after losing some international intermodal business and its expectation for lower coal shipments. So it plans to restart its stock repurchases in the second quarter.But UP executives cautioned that the economy remains uncertain as businesses and consumers wait to see whether the Federal Reserve will&nbsp;<a href="https://apnews.com/article/inflation-prices-rates-economy-federal-reserve-biden-f02b969d1b44a7ccb0385be03f766de0">start cutting interest rates</a>.Investor pressure on the railroads is in the spotlight this spring because an activist investor is&nbsp;<a href="https://apnews.com/article/norfolk-southern-ancora-earnings-proxy-vote-shaw-f5383c8a2e2d87e215be48beb4e298b1">currently trying</a>&nbsp;to take control of Norfolk Southern and replace that railroad's management because its profits have lagged the rest of the industry. Vena said he doesn't shy away from that pressure because it's appropriate for shareholders to expect a return on their investment in the capitalist system.“That’s the way business is,” Vena said. “The only reason an activist becomes involved somewhere is you’re just not performing to what you claim that you’ve been able to perform.”UP is one of the nation’s largest railroads with more than 30000 miles (48,000 kilometers) of track crisscrossing 23 Western states.

Union Pacific's first-quarter profit creeps up 1% as railroad limits expenses