Posts Tagged ‘CN’

Canadian National places major locomotive order

Canadian National has placed the largest power order by a Class I rail carrier in three years, asking for more than 200 ET44AC locomotives to be acquired from General Electric over the next three years, according to a report from Railway Age.

The first round of locomotives are expected to roll off GE Transportation’s assembly line in Texas next year and will be delivered through 2020, Railway Age reported.

For the original article on Railway Age, follow this link.

SMART TD members ratify National Rail Agreement

By a margin of nearly four to one, SMART Transportation Division members have voted to APPROVE the new National Rail Contract. The voting was conducted by BallotPoint Election Services, who certified the following results for each craft eligible to vote:

CRAFT ACCEPT REJECT
Conductors 79.89% 20.11%
Brakemen 78.98% 21.02%
Engine Service 76.58% 23.42%
Yardmen 79.97% 20.03%
Yardmaster 86.68% 13.32%
Combined 79.57% 20.43%

The approved contract will have an effective date of December 1, 2017, with implementation of new pay rates and employee healthcare cost-sharing modifications planned for January 1, 2018. Employees’ monthly healthcare contributions will remain frozen at $228.89 for the life of the contract.

The term of the agreement is for five years, from January 1, 2015 to December 31, 2019. In addition to a 3% increase previously negotiated and already implemented on January 1, 2015, the contract provides for full retroactive pay of 2% from July 1, 2016 through June 30, 2017, and 4% from July 1, 2017, until implementation of the new rates. Thereafter, affected members will receive a boost in wage rates of 2.5% on July 1, 2018, and 3% on July 1, 2019.

The ratified contract will cover over 35,000 SMART TD members employed by BNSF, CSX, Norfolk Southern, Kansas City Southern, Union Pacific and numerous smaller carriers, all of whom were represented in this round of bargaining by the rail industry’s National Carriers’ Conference Committee.

The SMART TD negotiating team was led by President John Previsich, who was assisted in the negotiations by Vice Presidents David Wier, John Lesniewski, Troy Johnson, John England, Doyle Turner and Jeremy Ferguson, along with General Chairpersons Danny Young (BNSF), Mark Cook (NS), Brent Leonard (UP) and Steve Mavity (CSX), all four of whom are nationally elected TD officers in addition to serving as General Chairpersons.

For this round of bargaining, SMART TD joined forces with five other unions to form the Coordinated Bargaining Group. The other unions in the CBG are the American Train Dispatchers Association; the Brotherhood of Locomotive Engineers and Trainmen (a Division of the Rail Conference of the International Brotherhood of Teamsters); the Brotherhood of Railroad Signalmen; the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers and the National Conference of Firemen and Oilers/SEIU.

President Previsich commented: “I believe that our negotiating team, along with the teams from the other unions in the CBG, are to be commended for staying the course during a long and tedious round of negotiations. The easy thing for them to do when the going got tough was to declare defeat and walk away from the negotiating table, as others have done, but our team never wavered. By rejecting the carriers’ unreasonable demands while staying at the table and continuing to negotiate, the team was successful in obtaining an agreement that achieved an approval rate of 79.57%.”

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The SMART Transportation Division, formerly the United Transportation Union, is the largest rail union in the United States representing members in all operating crafts, including engineers, conductors, trainmen, switchmen and yardmasters.

Follow this link to view this release in PDF form.

3rd quarter financial results released by Class I’s

 

 

 

 

 

Net Earnings: $459 million or $0.51 per share, up from $455 million or $0.49 per share for the same period last year

Revenue: Increased 1 percent to $2,743 million

Operating Income: Improved 4 percent to $876 million

Operating Ratio: Improved 90 basis points to 68.1 percent

Click here to read CSX’s full earnings report.

 

 

 

 

 

 

 

 

Net Earnings: Increased to $130 million or $1.23 per diluted share

Revenue: Increased 9 percent to $657 million

Operating Income: Increased 17 percent to $234 million, a third quarter record

Operating Ratio: Improved 2.5 points to 64.4 percent, a third quarter record

Click here to read KCS’s full earnings report.

 

 

 

 

 

Net Earnings: Increased 47 percent to C$510 million or 50 percent to C$3.50 diluted earnings per share

Revenue: Increased 3 percent to C$1.6 billion, up from C$1.55 billion

Operating Income: Increased 5 percent to C$690 million, up from C$657 million

Operating Ratio: Improved 100 basis points to 56.7 percent from 57.7 percent

Click here to read CP’s full earnings report.

 

 

 

 

 

 

 

 

Net Earnings: Increased to $1.2 billion or $1.50 per diluted share

Revenue: Up 5 percent from $5.4 billion

Operating Income: Increased 3 percent to $2.0 billion

Operating Ratio: Increased 0.7 points to 62.8 percent

Click here to read UP’s full earnings report.

 

 

 

 

 

Net Earnings: Decreased 1 percent to C$958 million, while diluted earnings per share increased 2 percent to C$1.27

Revenue: Increased 7 percent to C$3,221 million

Operating Income: Increased 4 percent to C$1,459 million

Operating Ratio: Increased 1.4 points to 54.7 percent

Click here to read CN’s full earnings report.

 

 

 

 

Net Earnings: Up 10 percent to $506 million or diluted earnings per share up 13 percent to $1.75

Revenue: Increased 6 percent to $2.7 billion

Operating Income: Up 11 percent to $911 million

Operating Ratio: 65.9 percent, a quarterly record

Click here to read NS’s full earnings report.

 


Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

2017 2nd quarter financial results for Class I railroads

CSX

Net Earnings: $510 million or $0.55 per share, up 15 percent from $445 million or $0.47 per share from 2016’s second quarter earnings results

Revenue: Increased 8 percent to $2,933 million

Operating Income: $958 million, up 14 percent

Operating Ratio: 67.4 percent, down from 68.9 percent

Click here to read CSX’s full earnings report.

 

KCS

Net Earnings: $135 million or $1.27 per diluted share, up from 2016 second quarter’s reported $121 million or $1.11 per diluted share

Revenue: Record second quarter revenues of $656 million, a 15 percent increase from the second quarter of 2016

Operating Income: All-time record of $239 million, an increase of 9 percent from the second quarter of 2016

Operating Ratio: 63.5 percent, a 2.2 increase from second quarter 2016

Click here to read KCS’s full earnings report.

 

CP

Net Earnings: Rose 46 percent to C$480 million or C$3.27 per diluted share (a second quarter record)

Revenue: C$1.64 billion, up 13 percent

Operating Income: A second-quarter record of C$679 million, up 23 percent

Operating Ratio: Improved 330 basis points to a second quarter record of 58.7 percent

Click here to read CP’s full earnings report.

 

UP

Net Earnings: $1.2 billion or $1.45 per diluted share (a second quarter record), as compared to the $1.0 billion or $1.17 per diluted share reported for the second quarter of 2016

Revenue: Up 10 percent to $5.3 billion

Operating Income: Up 21 percent to $2.0 billion

Operating Ratio: A second quarter record of 61.8 percent, a 3.4 point improvement compared to the second quarter 2016

Click here to read UP’s full earnings report.

 

CN

Net Earnings: Increased 20 percent to C$1,031 million and diluted earnings per share increased 24 percent to C$1.36

Revenue: Increased 17 percent to a quarterly record of C$3,329 million

Operating Income: Increased 16 percent to C$1,495 million

Operating Ratio: Increased 0.6 points to 55.1 percent

Click here to read CN’s full earnings report.

 

NS

Net Earnings: Up 23 percent to $497 million while diluted earnings per share increased 26 percent to $1.71

Revenue: Increased 7 percent to $2.6 billion

Operating Income: Up 15 percent year-over-year to $888 million

Operating Ratio: An all-time record at 66.3 percent

Click here to read NS’s full earnings report.

 


Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Class I’s release 4th quarter & 2016 annual earnings

4th Quarter 2016

Net Earnings: $458 million or $0.49 per share, up from $466 million or $0.48 per share in 2015’s 4th quarter
Revenue: Increased by 9 percent to $3,037 billion
Operating Income: Increased to $1 billion over last year’s $791 million
Operating Ratio: 67 percent, an improvement over last year’s 71.6 percent

2016 Annual Earnings

Net Earnings: Decreased to $1.7 billion or $1.81 earnings per share, down from $1.96 billion or $2.00 per share in 2015
Revenue: Decreased to $11.1 billion from $11.8 billion in 2015
Operating Income: Decreased $3.4 billion from $3.6 billion in 2015
Operating Ratio: 69.4 percent
Click here to read CSX’s full earnings report


4th Quarter 2016

Net Earnings: Net income increased by 20 percent to C$3.84 million; diluted earnings per share increased 25 percent to C$2.61 from fourth quarter 2015’s reported C$2.08
Revenue: Decreased 3 percent to C$1.64 billion from C$1.69 billion
Operating Income: Increased 6 percent to C$717 million over fourth quarter 2015’s C$677 million
Operating Ratio: 56.2 percent, a record low

2016 Annual Earnings

Net Earnings: Net income increased by 18 percent to C$1.6 billion from C$1.4 billion; diluted earnings per share increased 27 percent to C$10.63 from C$8.40
Revenue: Decreased 7 percent to C$6.23 billion from 2015’s reported C$6.71 billion
Operating Income: Decreased 4 percent from 2015’s C$2.7 billion to C$2.6 billion
Operating Ratio: 58.6 percent, a record low
Click here to read CP’s full earnings report


4th Quarter 2016

Net Earnings: $1.1 billion or $1.39 per diluted share, an increase of 6 percent
Revenue: Down 1 percent to $5.2 billion
Operating Income: Up 2 percent to $2.0 billion
Operating Ratio: Improved by 1.2 points to 62.0 percent

2016 Annual Earnings

Net Earnings: Decreased by 11 percent to $4.2 billion or 8 percent to $5.07 per diluted share, down from 2015’s reported $4.8 billion or $5.49 per diluted share
Revenue: Decreased to $19.9 billion from $21.8 billion
Operating Income: Decreased by 10 percent to $7.3 billion
Operating Ratio: Increased 0.4 points to 63.5 percent
Click here to read UP’s full earnings report


4th Quarter 2016

Net Earnings: Decreased by 5 percent to $130 million or $1.21 earnings per share
Revenue: Static at $599 million
Operating Income: Decreased by 4 percent to $211 million
Operating Ratio: 64.8 percent, a 1.4 point increase from 2015’s 4th quarter report of 63.4 percent

2016 Annual Earnings

Net Earnings: $480 million or $4.43 per share, down from 2015’s reported $485 million or $4.40 per share
Revenue: Down 3 percent to $2.3 billion
Operating Income: Increased by 2 percent to $819 million
Operating Ratio: 64.9 percent, a 1.9 point improvement over 2015
Click here to read KCS’s full earnings report


4th Quarter 2016

Net Earnings: Increased 8 percent to C$1,018 million; diluted earnings per share increased 12 percent to C$1.32
Revenue: Increased by 2 percent to C$3,217 million
Operating Income: Increased by 3 percent to C$1,395 million
Operating Ratio: 56.6 percent, an improvement of 0.6 points

2016 Annual Earnings

Net Earnings: Increased 3 percent to C$3,640 million; diluted earnings per share rose 6 percent to C$4.67
Revenue: Decreased by 5 percent to C$12,037 million
Operating Income: Increased 1 percent to C$5,312 million
Operating Ratio: Improved 2.3 points to 55.9 percent
Click here to read CN’s full earnings report


4th Quarter 2016

Net Earnings: Increased 15 percent to $416 million; diluted earnings per share increased 18 percent to $1.42
Revenue: Decreased 1 percent to $2.5 billion
Operating Income: Increased 19 percent to $761 million
Operating Ratio: 69.4 percent, a 510 point improvement over 74.5 percent reported for the fourth quarter of 2015

2016 Annual Earnings

Net Earnings: Increased 7 percent to $1.7 billion; diluted earnings per share increased 10 percent to $5.62
Revenue: Decreased by 6 percent to $9.9 billion
Operating Income: Increased 7 percent to $3.1 billion
Operating Ratio: Improved 370 points to 68.9 percent as compared to 2015’s reported 72.6 percent
Click here to read NS’s full earnings report


Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Class I’s release 3rd Quarter 2016 earnings

CSX_logo

Net Earnings: $455 million or $0.48 per share; down from $507 million or $0.52 per share
Revenue: Declined 8 percent
Operating Income: Declined 10 percent to $841 million
Operating Ratio: Increased 70 basis points to 69.0 percent
Click here to read CSX’s full earnings report

 

KCS_rail_logo

Net Earnings: $121 million or $1.12 per diluted share; down from $132 million or $1.20 per diluted share
Revenue: Decreased 4 percent to $605 million
Operating Income: Decreased 9 percent to $200 million
Operating Ratio: Increased to 66.9 percent
Click here to read Kansas City Southern’s full earnings report

 

CP_Logo_RGB

Net Earnings: C$347 million (7 percent increase) or C$2.34 diluted earnings per share (a 15 percent increase); up from C$323 million or C$2.04 diluted earnings per share
Revenue: Decrease of 9 percent to C$1.55 billion
Operating Income: C$657 million, a decrease of 13 percent
Operating Ratio: 57.7 percent, lowest ever reported
Click here to read Canadian Pacific’s full earnings report

 

union_pacific_logo

Net Earnings: $1.1 billion or $1.36 per diluted share (9 percent decline); down from $1.3 billion or $1.50 per diluted share
Revenue: $5.2 billion, down 7 percent
Operating Income: Declined 11 percent to $2.0 billion
Operating Ratio: 62.1 percent, up 1.8 points
Click here to read Union Pacific’s full earnings report

 

CN_red_logo

Net Earnings: C$972 million or C$1.25 per diluted share, as compared to 2015 3rd quarter of C$1,007 million or C$1.26 per diluted share
Revenue: Decreased 6 percent to C$3,014 million
Operating Income: Declined 5 percent to C$1,407 million
Operating Ratio: A record 53.3 percent, a 0.5-point improvement
Click here to read Canadian National’s full earnings report

 

ns_Logo

Net Earnings: $460 million (2 percent increase) or $1.55 diluted earnings per share (4 percent increase); up from $452 million or $1.49 diluted earnings per share
Revenue: Declined 7 percent to $2.5 billion
Operating Income: Stayed at a steady $820 million
Operating Ratio: 67.5 percent, a 220 basis point improvement over 2015’s reported 69.7 percent in the third quarter
Click here to read Norfolk Southern’s full earnings report

 

Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

2016 2nd quarter financial results for Class I railroads

CSX_logo

Net Earnings: $445 million or $0.47 per share; down from $533 million or $0.56 per share

Revenue: Down 12 percent

Operating Income: Down 17 percent to $840 million

Operating Ratio: Increased 210 basis points to 68.9 percent

Click here to read CSX’s full earnings report.

 

KCS_rail_logo

Net earnings: $120 million or $1.11 diluted earnings per share, a 10 percent increase

Revenue: $569 million, a decrease of 3 percent

Operating Income: $220 million, an 18 percent increase

Operating Ratio: 61.3 percent, improvement of 6.8 points

Click here to read Kansas City Southern’s full earnings report.

 

CP_Logo_RGB

Net Earnings: C$328 million or C$2.15 per share, a decline of 16 percent

Revenue: C$1.45 billion, a decrease of 12 percent

Operating Income: C$551 million, a decrease of C$95 million

Operating Ratio: 62 percent, an increase of 110 basis points

Click here to read Canadian Pacific’s full earnings report.

 

union_pacific_logo

Net Earnings: $1.0 billion or $1.17 per diluted share, a decline of 15 percent

Revenue: $4.8 billion, down 12 percent

Operating Income: $1.7 billion, down 15 percent

Operating Ratio: 65.2 percent, an increase of 1.1 points

Click here to read Union Pacific’s full earnings report.

 

CN_red_logo

Net Earnings: Decreased to C$858 million or C$1.10 per diluted share

Revenue: Decreased to C$2,842 million, a 9 percent decrease

Operating Income: C$1,549 million, a 12 percent decline

Operating Ratio: Second quarter record of 54.5 percent, an improvement of 1.9 points

Click here to read Canadian National’s full second quarter earnings report.

 

ns_Logo

Net Earnings: $405 million or $1.36 diluted earnings per share, a decline in net earnings and a 4 percent decline in earnings per share.

Revenue: $2.5 billion, down 10 percent

Operating Income: $770 million, a 5 percent decrease

Operating Ratio: Improved to 68.6 percent, a 140 basis point improvement or 11 percent reduction

Click here to read Norfolk Southern’s full second quarter earnings report.

 

Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Class I’s announce 2016 first quarter financial results

CSX_logoCSX Corporation announced declining financial results for the first quarter 2016. Net earnings for the railroad decreased to $356 million or $0.37 per share, down from first quarter 2015 reported net earnings of $442 million or $0.45 per share.

“As we managed through the impact of the continued coal decline and other market forces during the first quarter, CSX took aggressive actions to improve efficiency, reduce costs and streamline resources across the network to further reshape the company,” CEO Michael J. Ward said.

Revenue for the quarter declined 14 percent, reflecting a lower fuel recovery, a 5 percent volume decline and a $95 million year-over-year decline in other revenue. Expenses also decreased by 12 percent, driven by efficiency gains of $133 million and lower volume-related costs of $64 million. CSX reported a decrease to operating income of $139 million to $704 million. At the same time, the operating ratio increased 90 basis points year-over-year to 73.1 percent.

“While CSX delivered strong efficiency gains in the first quarter, we continue to expect full-year earnings per share to decline in 2016 as a result of ongoing coal headwinds combined with other market fundamentals. At the same time, CSX remains focused on meeting and exceeding customer expectations while driving further efficiency savings to maximize shareholder value and achieve a mid-60s operating ratio longer term.”

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

 

KCS_rail_logoIn a press release April 19, Kansas City Southern (KCS) released their first quarter 2016 financial results.

Revenue decreased by 7 percent to $563 million. Operating income increased 5 percent to $188 million. Carload volumes for the quarter were 5 percent lower than in the first quarter 2015. Revenue declined 1 percent.

Operating expenses decreased by 12 percent to $375 million. Operating ratio came in at 66.6 percent, a 2.3 point improvement as compared with the reported 70.5 percent of the first quarter 2015. Diluted earnings per share were $0.99. Adjusted diluted earnings per share were $1.03.

“Despite flooding that shut down key portions of our U.S. rail network for over three weeks, KCS delivered solid earnings and operating results,” said CEO David L. Starling. “That we overcame this very significant challenge while simultaneously scaling costs across the network clearly demonstrates KCS’ ability to react quickly to rapid and unexpected changes to its operating environment.”

 

CP_Logo_RGBCanadian Pacific Railway (CP) announced its lowest-ever first quarter operating ratio of 58.9 percent and diluted earnings per share of C$3.51 (an 83 percent increase from C$1.92) or adjusted diluted earnings per share of C$2.50 (an 11 percent increase from C$2.26) for the first quarter 2016. CP reports that their operating ratio improved 430 basis points year-over-year and for a third straight quarter was below 60 percent. At 58.9 percent, operating ratio is the lowest-ever when compared to adjusted operating ratios in previous quarters, CP said.

“The precision railroading model works in all economic environments,” said CP CEO E. Hunter Harrison. “Despite weakness in the economy and volume headwinds, we focused on what we can control – our costs and our commitment to providing reliable service – and delivered a record performance.”

Revenues for the railroad were down 4 percent to C$1.59 billion from 2015’s first quarter revenues of C$1.67 billion. Operating income increased 7 percent to C$653 million from C$612 million. Net income rose 69 percent to C$540 million from C$320 million. Adjusted income was up 2 percent to C$384 million from the reported C$375 million of the first quarter last year.

“I am proud of what the team continues to produce quarter after quarter in these difficult times and we remain optimistic in our outlook given signs of stabilization within the Canadian economy and in key global markets,” Harrison said. “As market conditions improve and volumes increase, our team of professional railroaders will be ready. Furthermore, we are confident in our plan to deliver shareholder value, which includes the announcement of a new share repurchase program that demonstrates our continued confidence over the long-term.”

 

union_pacific_logoUnion Pacific Corporation (UP) reported declines in first quarter 2016 revenues.

Operating revenue was down 14 percent to $4.8 billion. The railroad reported a first quarter net income of nearly $1.0 billion or $1.16 per diluted share, down 11 percent as compared to last year’s first quarter of $1.2 billion or $1.30 per diluted share. Operating income was down 15 percent to $1.7 billion and operating ratio went up 0.3 points to 65.1 percent.

“In this challenging environment, we have continued our intense focus on operating safely and efficiently, managing our resources, and improving our customer experience,” said CEO Lance Fritz. “As a result, the quarterly operating ratio came in at 65.1 percent, up only 0.3 points from last year, as solid core pricing and productivity improvements helped to offset an 8 percent decline in total volumes.”

 

ns_LogoNorfolk Southern Corporation (NS) announced strong financial results for the first quarter 2016.

Income from railway operations was up 19 percent to $723 million; while net income also saw a 25 percent increase to $387 million as compared to last year’s first quarter reported $310 million. NS reported that a first quarter record was set for operating ratio, which came in at 70.1 percent. Diluted earnings per share were $1.29, up 29 percent as compared with the reported diluted earnings per share of $1.00 for the first quarter 2015.

Railway operating revenues fell 6 percent to $2.4 billion, while operating expenses also decreased 13 percent to $1.7 billion.

“Our strong first-quarter results demonstrate the significant progress we are making in line with our strategic plan,” said CEO James A. Squires. “Since I became CEO in June, our team has been committed to streamlining operations, reducing expenses and maintaining superior customer service levels. Our focus on strengthening Norfolk Southern is yielding results, and the company is now on track to achieve productivity savings of about $200 million and an operating ratio below 70 in 2016.”

NS is implementing a strategic plan to reduce costs, drive profitability and enhance value for all NS shareholders. Through this plan, NS expects to achieve annual productivity savings of more than $650 million by 2020 and an operating ratio below 65 percent by 2020.

 

CN_red_logoCanadian National Railway (CN) announced mostly positive financial results for the first quarter 2016.

The railway reported a 13 percent increase in net income to C$792 million, while diluted earnings per share increased 16 percent to C$1.00. Operating income also increased 14 percent to C$1,217 million. CN reported a decrease in revenues by 4 percent to C$2,964 million. Carloadings declined 7 percent and revenue ton-miles also declined 9 percent. Operating expenses saw a decline of 14 percent to C$1,747 million. Operating ratio improved 6.8 points to 58.9 percent.

CEO Claude Mongeau said, “CN delivered a very solid quarterly performance in a challenging economic environment. We successfully aligned our resources with the reduced volume level to achieve strong efficiency gains, while continuing to offer superior customer service and significantly improving our safety performance. These achievements allowed the CN team to deliver record first-quarter financial results.”

Class I's release fourth quarter and annual earnings

CSX_logoCSX Corporation announced a solid fourth quarter and full-year financial performance for 2015. The railroad announced declines for the fourth quarter and mixed financial results for the full year.

CSX reported in a press conference that net earnings declined five percent to $466 million or $0.48 per share (down two percent), down from last year’s fourth quarter net earnings of $491 million or $0.49 per share.

Fourth quarter revenue declined 13 percent, as a result of a six percent volume decline and the impact of lower fuel recovery. CSX reported that expenses decreased 13 percent; reflecting reduced fuel prices, lower volume-related costs and efficiency gains. As a result, operating income declined for the quarter by 12 percent to $791 million, while operating ratio improved 20 basis points to 71.6 percent.

For the full year 2015, CSX generated $11.8 billion in revenue as growth in intermodal, automatic and minerals markets partially offset continued significant declines in coal. The company reports a four percent increase of earnings per share to $2.00 on net earnings of $2.0 billion. CSX said that improving service, resource alignment and efficiency gains helped generate an operating income of nearly $3.6 billion and the company’s first sub-70 full-year operating ratio at 69.7 percent.

“CSX delivered solid results in 2015 by balancing strong service with compelling cost control and efficiency gains despite a market challenged by low commodity prices and global impacts of the strong U.S. dollar,” CEO Michael J. Ward said.

“With negative global and industrial market trends projected for 2016, full-year earnings per share are expected to be down compared to 2015. CSX will continue to be rigorous about efficiency, resources and service quality in order to maximize shareholder value and achieve a mid-60s operating ratio longer term.”

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

 

CP_Logo_RGBCanadian Pacific Railway announced record fourth quarter and full-year earnings for 2015.

The fourth quarter saw the highest ever diluted earnings per share for the period at C$2.08 and adjusted diluted earnings per share of $2.72. Adjusted and reported operating ratio came in at 59.8 percent, matching the record-setting performance of 2014.

For the full-year 2015, CP announced diluted earnings per share at C$8.40 and adjusted diluted earnings per share at a record C$10.10, a 19 percent improvement over last year’s reported adjusted earnings per share of C$8.40. The railroad posted a best-ever full-year adjusted and reported operating ratio of 61 and 60 percent, beating the previous record set in 2014 at 370 and 470 basis points respectively. CP also reported record revenues of C$6.71 billion for the year.

“Thanks to our committed, hard-working employees across the network we have produced a record low operating ratio along with record earnings per share,” CEO E. Hunter Harrison said. “Despite challenging economic conditions and lower commodity prices, we continue to focus on what we can control – lowering costs, creating efficiencies and improving service.

“While the North American economy braces itself for more headwinds, we remain optimistic about the future and CP’s continued growth. Despite the challenges, we expect 2016 to bring an operating ratio below 59 while generating double-digit EPS (earnings per share) growth – a testament to the strength of our operating model and plan for the future.”

 

union_pacific_logoUnion Pacific Corporation reported decreases in revenues for the fourth quarter and full-year 2015.

UP reported a fourth quarter net income of $1.1 billion or diluted earnings per share of $1.31, a 19 percent decline as compared to last year’s fourth quarter of $1.4 billion or $1.61 per diluted share. Similarly, operating revenue was down 15 percent to $5.2 billion and business volumes as measured by total revenue carloads declined nine percent. Operating ratio came in at 63.2 percent, unfavorable by 1.8 points as compared to last year’s fourth quarter.

“Total volumes decreased nine percent in the quarter, more than offsetting another quarter of solid core pricing gains,” CEO Lance Fritz said. “On the cost side, we continued to adjust resources throughout the quarter and also made solid progress with our productivity initiatives. As a result of these efforts, we achieved a quarterly operating ratio of 63.2 percent.”

For the full year 2015, UP reported net income of $4.8 billion or $5.49 per diluted share, down eight and five percent respectively as compared to 2014’s reported net income of $5.2 billion or $5.75 per diluted share. Operating revenue also saw a decrease, coming in at $21.8 billion, as compared to 2014’s reported $24.0 billion. Operating income saw an eight percent decrease to $8.1 billion. Carloadings were down six percent for the year. UP reported an operating ratio of 63.1 percent, a full-year record, improving 0.4 points from the previous year.

“This past year was a difficult one in many respects, but our team did outstanding work in the face of dramatic declines in volumes, and shifts in our business mix,” Fritz said. “Overall economic conditions, uncertainty in the energy markets, commodity prices, and the strength of the U.S. dollar will continue to have a major impact on our business this year. However, we are well-positioned to efficiently serve customers in existing markets as they rebound.

“The strength and diversity of the Union Pacific franchise also will provide tremendous opportunities for new business development as both domestic and global markets evolve. When combined with our unrelenting focus on safety, productivity and service, these opportunities will translate into an excellent experience for our customers and strong value for our shareholders in the years ahead.”

 

KCS_rail_logoKansas City Southern reported decreases in earnings for the fourth quarter 2015. Revenue for the railroad decreased for the fourth quarter by seven percent to $598 million as compared to the fourth quarter of 2014.

The railroad also saw a decrease in carload volumes (down two percent). Operating expenses declined 12 percent to $379 million, a three percent decrease from last year’s fourth quarter. Operating income surged two percent to $219 million, as compared to last year’s reported $214 million. Operating ratio saw a 3.3 point improvement to 63.4 percent. Net income declined to $140 million or $1.28 per diluted share as compared to the reported $142 million or $1.28 per diluted share from the fourth quarter 2014. Adjusted diluted earnings per share came in at $1.23 as compared to $1.27 in 2014.

“KCS’ ability to react to a rapidly changing market and operational conditions was clearly evidenced during the fourth quarter in which not only did the company have to contend with an unsettled economy, but also with a hurricane in Mexico and floods in a key section of its U.S. rail network,” CEO David L. Starling said. “Despite these challenges, KCS attained a fourth quarter 2015 operating ratio of 63.4 percent, a 3.3 point improvement from the prior year. System velocity and system dwell metrics also improved, returning KCS to the top tier of Class I railroads in these categories.”

For the full year 2015, KCS reported a decline in revenue of six percent to $2.4 billion. Carloads decreased three percent from 2014, to 2.2 million. KCS reported an operating income for the year at $813 million. Full-year 2015 adjusted operating income decreased four percent from the prior year. Operating ratio saw a slight improvement of 0.7 points to 66.4 percent as compared to last year’s 67.1 percent. Reported net income for the railroad totaled $485 million or $4.40 per diluted share, as compared with 2014’s reported $504 million or $4.55 per diluted share. Adjusted diluted earnings per share came in at $4.49 as compared to the reported $4.82 adjusted diluted earnings per share in 2014.

“Though our industry still must contend with economic uncertainty in 2016, the progress we have made during 2015 gives us confidence that KCS is positioned to maximize its near-term and longer-term business opportunities,” Starling said.

 

CN_red_logoCanadian National Railway reported mixed financial results for the fourth quarter and full-year 2015.

For the fourth quarter, net income increased 11 percent to C$941 million, while diluted earnings per share increased 15 percent to C$1.18. Operating income increased seven percent to C$1,354 million. Revenues for the quarter saw a one percent decrease to C$3,166 million and carloadings declined eight percent and revenue ton-miles declined by five percent. Operating ratio improved 3.5 points to 57.2 percent.

For the full-year 2015, the railway saw a net income increase of 12 percent to C$3,538 million, with diluted earnings per share rising 14 percent to C$4.39. Adjusted net income saw an increase of 16 percent to C$3,580 million; whiled adjusted diluted earnings per share increased 18 percent to C$4.44. Operating income also saw an increase and rose 14 percent to C$5,266 million. Revenues increased four percent to C$12,611 million for the year, while carloadings declined two percent and revenue ton-miles decreased three percent. The operating ratio for 2015 improved by 3.7 points to 58.2 percent. Free cash flow came in at a record C$2,373 million, compared to 2014’s C$2,220 million.

“CN generated strong fourth quarter and full-year 2015 results despite the weak volume environment,” CEO Claude Mongeau said. “Our solid performance is a testament to the strength of CN’s franchise and diversified portfolio of businesses. I am particularly proud that CN’s team of railroaders quickly recalibrated resources to respond to weaker volumes, while protecting customer service.

“Although the economic environment remains challenging, CN will continue to leverage its franchise strength and industry-leading efficiency. For 2016, the company expects to deliver mid-single digit EPS [earnings per share] growth over adjusted diluted 2015 EPS of C$4.44. CN will continue to invest in the safety and efficiency of its network, with a 2016 capital investment program of approximately C$2.9 billion, including the negative impact of foreign exchange and increased spending for Positive Train Control technology.

“Given CN’s strong balance sheet and solid financial prospects, I am pleased to announce that the company’s board of directors approved a 20 percent increase in CN’s 2016 quarterly common-share dividend. CN has increased its dividend per share by 17 percent per year on average since its privatization in 1995 and continues to move towards a target payout ratio of 35 percent.”

 

ns_LogoNorfolk Southern Corporation reported declining financial results for both the fourth quarter and full-year 2015 as compared to the same periods in 2014.

Railway operating revenues declined 12 percent to $2.5 billion for the fourth quarter 2015. On the same token, traffic volumes also decreased by six percent as a result of lower coal volumes and the effects of low commodity prices.

Railway operating expenses decreased by $103 million, or five percent, to $1.9 billion. Income from railway operations was 28 percent lower for the quarter, coming in at $642 million. The operating ratio or operating expenses as a percentage of revenues, was 74.5 percent, as compared to last year’s reported 69 percent for the fourth quarter. Fourth quarter 2015 net income was $361 million or $1.20 per diluted share, a decrease from last year’s $511 million or $1.64 per diluted share.

Full year financials for 2015, like the fourth quarter, also saw declines. Railway operating revenues were $10.5 billion, a 10 percent decrease as compared to 2014. This reflects an $852 million or 64 percent reduction in fuel surcharge revenues. Traffic volume was also down three percent due to declines in coal. Railway operating expenses declined $422 million or five percent to $7.6 billion. Income from railway operations declined 19 percent to $2.9 billion. Operating ratio for the year was 72.6 percent, compared to 69.2 percent from the prior year. For 2015, net income was $1.6 billion or $5.10 per diluted share, as compared to 2014’s $2.0 billion or $6.39 per diluted share.

“We are implementing a plan to reduce costs and enhance profitable growth,” CEO James A. Squires said. This plan will enable us to achieve significant annual expense savings beginning in 2016 without compromising the company’s ability to capitalize on volume and revenue growth opportunities. We are making progress despite a challenging operating environment, including successfully restoring our rail service to previous high levels, realigning resources and completing strategic capacity investments to improve efficiency and productivity.

“Through these actions, we are positioning Norfolk Southern for improved performance and value creation in 2016 and beyond. We are confident in our ability to deliver superior shareholder value through our strategic plan, which is built on exceptional customer service, growth through pricing and new business, cost reduction and control, and increasing returns to capital. Our fourth-quarter results reflect current challenges in domestic and global markets.”

Class I railroads announce third quarter 2015 earnings

CSX_logoIn a press release Oct. 14, 2015, CSX announced record financial results for the third quarter of 2015.

Net earnings for the railroad came in at $507 million for the quarter, compared to the $509 million for the same period last year, which translates into a third quarter record of $0.52 per share, as compared to $0.51 per share in 2014.

CSX reports that revenue declined nine percent, while expenses decline 11 percent as a result of low fuel prices, cost reductions and savings from efficiency initiatives. The resulting $933 million in operating income drove a third quarter record operating ratio of 68.3 percent.

“CSX’s third quarter results demonstrate the company’s ability to leverage improving service while controlling costs in a dynamic environment where commodity prices and the strength of the U.S. dollar are challenging many of our markets,” CEO Michael J. Ward said. “Our performance supports strong pricing and continued efficiency gains as we continue to drive value for customers and shareholders.”

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

 

KCS_rail_logoOverall, Kansas City Southern (KCS) reported decreases in earnings for the third quarter 2015. However, the railroad did experience a record-setting operating ratio of 65.2 percent for the quarter, a 0.9-point improvement.

KCS reports revenues of $632 million, a decrease of seven percent as compared to the third quarter of 2014. Operating income also saw a four percent decrease to $220 million as compared to the reported $229 million a year ago. Reported net income totaled $132 million, or $1.20 per diluted share as compared with the $138 million or $1.25 per diluted share of a year ago. Adjusted earnings per share came in at $1.21 compared to the reported $1.29 of the third quarter 2014.

Overall, the railroad saw a decrease of two percent in carload volumes for the quarter. The third quarter saw a six percent increase in Agriculture & Minerals and a five percent increase in Chemical & Petroleum.

“Kansas City Southern’s third quarter 2015 financial and operational statistics point to meaningful sequential improvement from the second quarter,” CEO David L. Starling said. “While the company’s third quarter revenues increased $46 million over the second quarter, operating expenses grew by only $13 million. This improved financial performance contributed to a record third quarter operating ratio of 65.2 percent.

“There is no question that KCS has been confronted with some challenges in 2015. The resiliency of this company has been demonstrated by its ability to hit these challenges head-on and recover quickly while maintaining strong margins. We look to finish this year with continued strong commercial and operational improvement and ride this positive momentum into 2016.”

 

cp-logo-240Canadian Pacific Railway announced the highest-revenue ever for the third quarter 2015, a 16 percent growth in adjusted earnings per share and the lowest operating ratio for the period in the company’s history.

Revenue saw an increase of two percent to C$1.71 billion, while adjusted operating ratio improved 290 basis points to a record-low of 59.9 percent. Adjusted operating income also saw increases to C$685 million, a 10 percent increase. Adjusted earnings per share advanced 16 percent to C$2.69.

“I am proud of the CP team’s execution this quarter amid stubborn economic softness and the lowest commodity prices in more than a decade,” CEO E. Hunter Harrison said. “It’s clear that despite the ongoing tough economic environment, our continued focus on service, cost control and incremental investment in the franchise will serve customers and shareholders well in the long run.”

 

union_pacific_logoUnion Pacific Railroad reported declines in revenue for the third quarter 2015. The railroad reported net income decreased to $1.3 billion or $1.50 per diluted share down two percent as compared to last year’s $1.4 billion or $1.53 per diluted share in the third quarter 2014.

Operating revenue decreased 10 percent to $5.6 billion. UP did set a quarterly record in operating ratio, which came in at 60.3 percent, two points better than the third quarter 2014 and 1.1 points better than the previous record set in the fourth quarter 2014. The railroad reported that operating income was down five percent to $2.2 billion.

“Total volumes decreased about six percent in the quarter, more than offsetting another quarter of solid core pricing gains,” CEO Lance Fritz said. “On the cost side, we’ve made significant progress aligning our resources to current demand, and I am pleased to report a quarterly record operating ratio of 60.3 percent.

“We’ve made great progress in meeting this year’s challenges. As we finish 2015 and head toward next year, we continue to face many uncertainties. Energy prices, the consumer economy, grain markets and the strength of the U.S. dollar will all be key to future demand. Over the long term, we are well positioned to safely provide our customers with excellent service, while delivering strong value to our shareholders.”

 

CN_red_logoCanadian National Railway reported its financial and operating results for the third quarter. The railroad saw increases in net income, operating income, revenues and an improvement in operating ratio. The railway saw declines in carloadings and revenue ton-miles for the third quarter 2015.

CN saw an 18 percent increase in net income to C$1,007 million, while diluted earnings per share also increased 21 percent to C$1.26. Operating income increased 16 percent to C$3,222 million, while carloadings and revenue ton-miles each declined by six percent. CN set an operating ratio record of 53.8 percent, a five-percentage point improvement.

CFO Luc Jobin said, “CN delivered record third-quarter results thanks to strong team execution in safely and efficiently meeting our customers’ needs while recalibrating resources to the weaker volume environment. We remain committed to our long-term agenda of operational and service excellence, investing in the safety and integrity of our network, and fulfilling our role as a true backbone of the economy. With CN’s continued strong performance this year, we are pleased to reaffirm our outlook for double-digit adjusted earnings per share growth in 2015 versus last year’s adjusted diluted earnings per share of C$3.76.”

 

ns_LogoNorfolk Southern Corporation reported declines for the third quarter 2015. Net income declined to $452 million or $1.49 per diluted share, compared to last year’s reported $559 million or $1.79 per diluted share.

The railroad reported operating revenues saw a 10 percent decline to $2.7 billion due to reductions in fuel surcharge revenues and continued reductions in coal shipments. Overall, volume declined three percent to 1.9 million units for the quarter. Income from railway operations decreased by 18 percent to $822 million as compared to last year’s reported third quarter. Railway operating ratio came in at 69.7 percent. NS did see a decline in operating expenses by seven percent to $1.9 billion due to lower fuel costs.

“Norfolk Southern’s third-quarter results reflect commodities markets that continue to soften, as well as cost associated with restructuring initiatives to strengthen our company going forward. These pressures will linger in the fourth quarter, while traffic volume to date continues to lag behind last year. However, looking ahead to 2016, we are confident that with a reasonably stable economy and our own intense focus on service, returns and growth, we are poised for better results,” CEO James A. Squires said.

Ryan Edwards dies in CN switching accident

 Edwards


Edwards

Ryan D. Edwards, 27, of Schererville, Ind. was fatally injured July 25 while performing switching operations at Canadian National Markham Yard in Homewood, Ill. Edwards (Local 1299 of Schererville, Ind.) hired out in August of 2011.

Throughout his carer with the railroad, Edwards worked as an intermodal operator at BNSF and as a freight train conductor at both CSX and CN. While at CSX, Edwards graduated number one from his training class.

Edwards attended Columbia College in Chicago. He was an avid St. Louis Cardinals baseball fan and could often be seen wearing a Cardinals hat. Edwards married his wife, Victoria, May 22, 2010 and welcomed her two children, Edward and Emily, as his own. They later welcomed his son Ryan “RJ” into their family. He loved his family tremendously.

Edwards leaves behind wife, Victoria; their three children Emily, Edward and Ryan; his parents Nicole and John; his siblings Scottie, Tyra and Joshua; his great grandmother; grandparents and many other friends and family.

SMART TD General Chairperson Adren Crawford (Canadian National GO 433) reports, “The NTSB is investigating along with the SMART TD National Safety Team. No details of the incident have been released. Please keep his family and friends in your thoughts and prayers during this very difficult time.”

Visitation was Saturday, August 1 from 9:30 a.m. until time of service at 10:30 a.m. at the Salem Lutheran Church located at 18400 South Ashland Ave., Homewood, IL. Interment followed at Assumption Cemetery in Glenwood, Ill. 

Click here to leave condolences for the family, click here to view Edwards’ official obituary.