CLAIM #59233 · Union Pacific Corporation (UNP) · 2022Q3 earnings call · Oct 20, 2022 · due Dec 31, 2022
“However, we expect construction to be a positive due to strong project demand in the south.”
Kenny Rocker · EVP Marketing and Sales
In context
“to see how inflation and interest rates will impact our overall volume. But here is where we sit today with our markets. Let's start out with our bulk commodities. We expect biofuel shipments for renewable diesel to continue to grow due to solid market demand and business development wins. For coal, we anticipate continued favorable natural gas prices to generate demand for both domestic and export shipments. However, the opportunity to capture demand is dependent on the available resources. And our outlook for grain is also dependent on our service recovery. But as we've mentioned before, we have a tough comp in the fourth quarter as exports were strong last year. Moving on to Industrial. The forecast for industrial production is decelerating, and demand is softening in forest products. However, we expect construction to be a positive due to strong project demand in the south. And lastly, for premium, we are closely monitoring domestic intermodal demand as spot truck rates fall and inventories climb. We expect parcel and truckload demand to remain soft as consumer preferences have shifted more to experiences versus goods. We're also watching the international markets closely, but we expect to be positive in the fourth quarter due to easier comps. And we expect growth in Automotive to be driven by improving supply for parts and inventory replenishment. Overall, we still foresee a favorable demand environment for the fourth quarter. Crew availability continues to improve, which will help us capture more growth and support our business development wins as we head into 2023. With that, I'll turn it over to Eric to review our operational performance. Eric Gehringer:”
Verify independently
SEC filings for UNP ↗ · Claim quote is verbatim from the 2022Q3 earnings call.