Union Pacific stocks dropped more than 2 percent Thursday after reporting a 12 percent decline in operating revenue for its second quarter.
"We're still facing some of the very same headwinds we've faced in the last four or five quarters; natural gas pricing, replacing coal for a source of electricity, a strong U.S. dollar getting in the way of exports, the shale energy related activity being pretty depressed," Union Pacific CEO Lance Fritz said Thursday on "Squawk on the Street." "But we are seeing sequential improvement."
Union Pacific shares are up more than 17 percent in the year-to-date.
Union Pacific 12-month performance: