Union Pacificshould post positive volumes by year’s end despite the huge downturn in coal shipments, CEO Jack Koraleski told CNBC's "Closing Bell" on Monday.
“There’s a lot of noise in the economy about whether or not we’re sliding back, but we’re not seeing that,” Koraleski said. “We managed to offset our soft coal loadings in the second quarter to come in about flat with volume.”
Koraleski is projecting another record year as the other components of Union Pacific’s business continue to perform. The biggest strength is in oil as Union Pacific ships oil out of the shale formations and brings in the materials, like steel pipe, needed for production.
Automotive, industrial chemicals and domestic intermodal shipments are also doing well, Koraleski said. The auto industry is now slow and consistent after some recent swings. Koraleski sees opportunity for the business to get even better.
The fundamentals of the economy still worry him though. “When we think about a Union Pacific railroad, we’re building the railroad today we want to be running three years from now,” he said. “To some extent we’re making a bet and there’s a lot of uncertainty about the global economy.”