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Union Pacific 2Q profit chugs ahead 17 percent

By WTOP Staff

OMAHA, Neb. (AP) — Union Pacific Corp. said Thursday that its quarterly profit climbed 17 percent as the railroad hauled 8 percent more freight and raised shipping rates.

The Omaha, Nebraska-based company said it hauled more agricultural, automotive, intermodal, industrial and coal shipments. The only area where volume slipped was in chemicals, which dipped 1 percent because crude oil shipments declined.

Union Pacific Chief Executive Jack Koraleski said those shipments show the economy is continuing to gradually improve, making railroad executives optimistic about the rest of the year.

“The fundamentals of the economy are positive and they continue a nice, slow-growth trajectory,” Koraleski said.

The railroad operator said profit increased to $1.29 billion, or $1.43 per share, in the second quarter. That’s up from $1.11 billion, or $1.18 per share, a year ago. The analysts surveyed by Zacks Investment Research expected profit of $1.42 per share on average.

Union Pacific’s earnings per share were helped by the railroad’s purchase of 8.3 million shares of its own stock for $806 million during the quarter.

The railroad said revenue rose 10 percent to $6.02 billion from $5.47 billion in the same quarter a year earlier, and beat Wall Street forecasts. Analysts expected $5.98 billion, according to Zacks.

Citi analyst Christian Wetherbee said Union Pacific’s solid results in the quarter are likely to continue to result in good stock performance for investors.

Its shares declined 74 cents to $101.77 Thursday, but are up 21 percent since the start of this year and 28 percent over the past year.

Federal regulators proposed new rules Wednesday to improve the safety of railroads transporting crude oil and ethanol in the wake of several fiery accidents.

Koraleski noted the industry has been working with regulators, so he said he wasn’t surprised by the rules that call for better tank cars to carry flammable liquids and impose some restrictions on railroads.

But he said Union Pacific will submit comments on the proposed rules and suggest some changes. For instance, Koraleski said he doesn’t think it makes sense to extend a 40 mph speed limit railroads are using when hauling crude oil through urban areas to the entire railroad system.

“We think it’s unnecessary and it would slow our network,” he said.

Union Pacific operates 32,400 miles of track in 23 states from the Midwest to the West and Gulf coasts.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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