April 25 (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 6% 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, where coal volumes have declined as the U.S. is

increasingly stockpiling cheap natural gas instead.

In response to a challenging freight market, the railroad

operator has continued to price its services above the rate of

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.

To offset lower volumes, the Omaha, Nebraska-based company

has been seeking new business in segments such as biofuels and

petrochemicals.

It has also sought to improve its service efficiency, which

came under shareholder pressure in 2023 after the company's

operating ratio rose for several quarters.

Union Pacific ( UNP ) reported an operating ratio of 60.7% for the

first quarter, an improvement from last year's 62.1%. The ratio

is a keenly watched metric that indicates operating expenses as

a percentage of revenue.

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.