Union Pacific wants to buy Norfolk Southern in a deal that would create the first transcontinental railroad. That deal faces a lengthy review by the U.S. Surface Transportation Board before the companies would be able to merger Union Pacific’s vast network in the West with Norfolk Southern’s operation in the Eastern United States.

The Omaha, Nebraska-based Union Pacific said it earned $1.79 billion, or $3.01 per share, in the quarter. That’s up from $1.67 billion, or $2.75 per share, a year ago. And without $41 million in merger costs the railroad would have made $3.08 per share but either number would have beat the Wall Street estimates of $2.97 per share.

Norfolk Southern, which is based in Atlanta, said Thursday afternoon that it made $711 million, or $3.16 per share in the quarter. That’s down from $1.1 billion, or $4.85 per share, a year ago.

Both last year’s figures and this year’s results were affected by one-time issues including significant land sales and insurance payments related to the East Palestine, Ohio, derailment last year and some costs related to the merger and restructuring this year.

Without those, the railroad said its profits were up about 2% at $3.30 per share in the quarter, which also topped the estimates of the analysts surveyed by FactSet Research who predicted earnings of $3.19 per share.

Union Pacific CEO Jim Vena wrote a letter to employees reiterating that he thinks the merger is great for America because it would enable the railroad to deliver goods more quickly and help the companies that rely on its deliveries of raw materials and finished products.

“While Union Pacific has good opportunities to grow, the rail industry is going to be challenged by technology in the trucking and shipping industries,” Vena wrote. “Union Pacific continues to invest in technology, but if we truly want to compete and grow the business, we must have a network that is set up to provide seamless service at a cost-effective price, positioning manufacturers to win in the marketplace.”

“You can see where the environment increasingly becomes more competitive. And you need to continue to make improvements. And potentially at some point you’re constrained with your network in what you can do,” Windau said.

He compared the opposition to this merger to the backlash the United States faced in 1867 for agreeing to pay $7.2 million to acquire Alaska from Russia. “I don’t think anybody would claim that was a bad deal for America,” Vena said.

Union Pacific said it remains on track to deliver profits this year in line with its three-year goal for high-single digit to low double-digit growth.

Norfolk Southern CEO Mark George said his railroad set a new record in fuel efficiency as it continued to work on improving productivity.