What drove UNP's operating profit growth in Q3 2024?

Union Pacific's operating profit growth in Q3 2024 was driven by several key factors:

1. **Core Pricing Gains and Increased Volume**: The company reported a 1% increase in operating revenue, which was primarily driven by core pricing gains and slightly increased volume. This reflects the company's successful pricing strategy and ability to grow revenue despite challenging market conditions.
2. **Operating Efficiency and Intermodal Equipment Sale**: The operating ratio, which measures the company's operating efficiency, improved by 300 basis points to 60.0%. This improvement was partly due to the sale of intermodal equipment, which had a positive impact on the operating ratio. The company's focus on operational efficiency has contributed significantly to its profitability.
3. **Cost Management**: Despite inflationary pressures, Union Pacific managed to reduce expenses effectively, as evidenced by a 4% year-over-year decrease in overall operating expenses. This cost-control measures have helped in maintaining the profitability margins.
4. **Dividend and Share Repurchases**: The company resumed share repurchases, returning $1.7 billion to shareholders year-to-date. This reflects the company's commitment to rewarding shareholders, which can boost investor confidence and potentially increase the stock's value.

In conclusion, Union Pacific's operating profit growth in Q3 2024 was driven by a combination of factors including core pricing gains, increased volume, operating efficiency, cost management and shareholder returns. These elements collectively contributed to the company's overall financial performance during the quarter.