UP estimates $6 billion benefit in 2017 from new tax law

Union Pacific Railroad estimates that changes in the new tax law will provide a nearly $6 billion boost to the railroad's 2017 earnings.

The Class I earlier this week disclosed the estimated impact from the new Tax Cuts and Jobs Act in a filing with the Securities and Exchange Commission.

The $5.8 billion benefit comes primarily from the revaluation of UP's deferred tax liabilities to reflect the new federal corporate tax rate of 21 percent.

In addition, UP said the new law will result in a $200 million non-cash reduction to its operating expenses.

UP may have more details on the new law's impact when it discloses its fourth-quarter 2017 financial results on Jan. 25.