Railroad Union Pacific says its second-quarter earnings fell 12 percent, as stringent cost cutting partially offset major shipping declines across its business.
The company thinks that the economy has reached its worst point, although it's not sure when it will get better.
The company reported earnings of $468 million, or 92 cents per share, compared with $531 million, or $1.02 per share a year earlier.
Excluding a gain of 14 cents per share from a land sale, earnings were 78 cents per share in the latest quarter.
Revenue fell 28 percent to $3.3 billion.
Analysts projected a profit of 76 cents per share on revenue of $3.51 billion. Analyst estimates typically exclude one-time items.
Omaha, Neb.-based Union Pacific Corp. reported slashing costs by 30 percent in the quarter. Total freight revenue slid 28 percent.
CEO Jim Young says shipping volumes may have stabilized.