(Reuters) -Railroad operator Union Pacific ( UNP ) said it will restart share repurchases in the second quarter as it beat Wall Street estimates for first-quarter results on Thursday, with strong pricing offsetting lower volumes.

Shares of the company were up nearly 5.57% in pre-market trading

The company, seen as a bellwether for the U.S. economy, has continued to face volume headwinds while maintaining excess capacity.

The slowdown in demand is particularly pronounced in the bulk segment due to coal volumes have declined with the U.S. increasingly stockpiling cheap natural gas.

In response to a challenging freight market, the railroad operator has continued to price its services above inflation, mirroring a trend seen across sectors such as retail and industrials.

The company reported operating revenue of $6.0 billion in the first quarter ended March, flat year-on-year, but above analysts' estimates of $5.98 billion, as per LSEG data. Union Pacific's ( UNP ) net income of $1.6 billion, or $2.69 per share, was also flat year-on-year but came in above estimates of $2.51 per share.