HUTCHINSON, Kan. — Lower car loadings ate into Union Pacific’s bottom line in the third quarter, although the nation’s largest railroad posted a record operating ratio of 59.5%.

U.P. reported net income of $1.6 billion, which was essentially flat from the same period last year. But the railroad faced declining shipments in nearly every sector with coal and energy car loads falling 20%. Freight revenue fell by 7% and shipments fell an average of 6%. Fewer car loads did allow the railroad to speed up delivery and lower lag time for shipments.

“Given the challenging volume environment, we delivered solid third-quarter financial results, including an all-time best quarterly operating ratio of 59.5 percent,” Lance Fritz, Union Pacific chairman, president and chief executive officer, said. “The work our employees are doing as part of Unified Plan 2020 is foundational to the company’s success and I am confident there are additional improvement opportunities going forward for our customers and shareholders.”

U.P. operates an average of 25 trains per day through the area, and between Hutchinson and Wichita. It’s the fourth largest property taxpayer in Reno County with a total valuation of more than $7.5 million.