(Rewrites paragraph 1 with details of Norfolk merger, CEO comment in paragraph 8, rival performance in paragraphs 11) Oct 23 (Reuters) - Union Pacific topped Wall Street estimates for third-quarter profit on Thursday, led by resilient coal and food grain volumes in its first earnings report since announcing an $85 billion deal to form the nation's first coast-to-coast freight rail operator. Railroad operators such as Union Pacific are benefiting from optimism around demand for coal transport, after U.S. President Donald Trump signed executive orders that aim to boost coal production. Union Pacific said the results include costs of $41 million, or $0.07 per share on a diluted basis, related to its merger with Norfolk Southern. Shares of Union Pacific were down about 1.4% before the bell. The stock has risen 11.4% since the merger announcement through its last close. The deal, still subject to regulatory clearance from the Surface Transportation Board, has drawn a positive response from U.S. President Donald Trump. The companies expect to file a merger application with the STB by the end of January. The railroad industry has struggled with volatile freight volumes, rising labor and fuel costs, and growing pressure from shippers over service reliability. Revenue from its bulk segment, which includes shipments of coal and food grains, grew 7% to $1.93 billion for the third quarter. "While Union Pacific has good opportunities to grow, the rail industry is going to be challenged by technology in the trucking and shipping industries," chief executive Jim Vena said. The West Coast railroad operator posted adjusted quarterly profit of $3.08 per share, beating analysts' estimates of $2.99 per share, according to data compiled by LSEG. Total operating revenue, meanwhile, came in at $6.24 billion, largely in line with analysts' expectations. Last week, rival CSX also beat estimates, albeit on improving intermodal volumes and higher pricing in its merchandise segment. (Reporting by Anshuman Tripathy and Nandan Mandayam in Bengaluru; Editing by Leroy Leo) (The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
