OMAHA, Neb. (AP) — Union Pacific’s third quarter profit grew 9% as the railroad delivered 6% more freight and continued to raise prices and streamline its operations.

The Omaha, Nebraska, railroad earned $1.67 billion, or $2.75 per share. That’s well ahead of the $1.53 billion, or $2.51 per share, Union Pacific earned a year ago, but just behind what Wall Street expected.

The analysts surveyed by FactSet Research expected the railroad to report earnings per share of $2.79. Shares fell more than 3% in premarket training after the report was released. Still, CEO Jim Vena was pleased with the results.

“Our third quarter results demonstrate the success of our strategy,” Vena said. “The entire Union Pacific team is focused on delivering for our customers and shareholders; and is energized to build on these accomplishments to drive sustainable long-term success.”

The railroad expects its fourth quarter profit will grow sequentially from the third quarter and top last year’s results. Union Pacific said it sees positive momentum in its profits as its service and efficiency and pricing all continue improving.

Union Pacific didn’t make any change in its plan to repurchase roughly $1.5 billion of its shares this year and invest $3.4 billion in capital improvements to its network.

The number of shipments Union Pacific delivered in the quarter was mixed across different sectors. Intermodal shipments of cargo containers led the growth, but those generate the least revenue per car on average. Coal continued its long-term decline, but metals, minerals and auto shipments were also down.

Revenue was up 3% at $6.09 billion — just behind the $6.14 billion that analysts had predicted.

Union Pacific’s expenses declined 2% to $3.68 billion as its fuel costs dropped 13% in the quarter with inflation easing.

Union Pacific is one of the nation’s largest railroads with tracks crossing 23 western states.

Funk covers all the major freight railroads including Union Pacific, BNSF, Norfolk Southern, CSX, Canadian National and CPKC. Funk also covers Warren Buffett’s Berkshire Hathaway and has been attending Buffett’s “Woodstock for Capitalists” annual meeting every spring in Omaha, Nebraska, for 19 years.

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