The growing concerns of the coronavirus pandemic might have a “material” impact on Union Pacific Corporation’s UNP 2020 financial results, per a SEC filing.
However, the magnitude of the impact is quite uncertain and depends on a large number of factors, such as the effect of federal, state and local government regulations, the pandemic’s impact on demand for the company’s services, the extent of disruption to global supply chains, etc.
Union Pacific will discuss these impacts in its first-quarter 2020 earnings conference call, come Apr 23. The company will also update its expectations for 2020, in the wake of the coronavirus.
Union Pacific Corporation Price
Management at another major railroad player CSX Corporation CSX stated that the impact of COVID-19 may be material to its financial and operating results. However, the magnitude will depend on the “length of time that the pandemic continues, its effect on the demand for the Company’s transportation services and the supply chain, as well as the effect of governmental regulations imposed in response to the pandemic”.
Per the company, containment measures for COVID-19, such as travel restrictions, social distancing and work-from-home orders among others might affect demand for the company’s products including import and export volume. Moreover, supply-chain disruptions may further weigh on volumes.
The company is expected to provide an update on its 2020 outlook, including the impact of coronavirus, during its first-quarter earnings call scheduled for Apr 22.
Fellow players in the railroad industry, such as Kansas City Southern KSU and Norfolk Southern Corporation NSC may also see substantial impacts of the coronavirus on their 2020 results.
Original post at finance.yahoo.com