Posts Tagged ‘earnings’

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.

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.

Class I railroads release 4th quarter, annual earnings

CSX_logoIn a press release Jan. 13, CSX announced record fourth-quarter and full-year financial results for revenue, operating income, net earnings and earnings per share. Net earnings for the railroad saw a 15 percent increase from $426 million from the same quarter last year to $491 million for the fourth quarter of 2014.

Revenue for the fourth quarter saw a five percent increase to $3.2 billion. Operating income also saw an increase of 11 percent to $901 million for the quarter, while operating ratio improved 140 basis points to 71.8 percent.

For the full year of 2014, CSX produced new all-time records for revenue of $12.7 billion, operating income of $3.6 billion, net earnings of $1.9 billion and earnings per share of $1.92. Operating ratio remained stable at 71.5 percent.

“CSX is capturing broad-based market strength, completing strategic infrastructure projects and adding resources to further improve service performance and leverage growth opportunities,” said Michael J. Ward, chairman, president and CEO of CSX. “Building on a foundation of strong safety and customer service, we expect to continue growing our intermodal and merchandise businesses faster than the economy, pricing above inflation and driving efficient asset utilization.”

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.

 

union_pacific_logoUnion Pacific railroad reports an increase in profits for the fourth quarter 2014 over the fourth quarter of 2013. UP reported a net income of $1.4 billion or $1.61 per diluted share, up 27 percent over last year’s $1.2 billion or $1.27 per diluted share for the same quarter, an all-time quarterly record for the railroad.

Operating income and operating ratio also made all-time quarterly records. Operating income totaled $2.4 billion, up 20 percent and operating ratio was up 3.6 points to 61.4 percent. Operating revenue also increased nine percent to $6.2 billion.

“Union Pacific achieved record quarterly financial results, driven by strong volumes, solid core pricing and productivity gains,” CEO Jack Koraleski said. “Robust volumes challenged our network for much of the year, and we remained focused on adding the necessary resources to safely improve service. We are encouraged with the progress we are making.”

Full year records were also set with diluted earnings per share, operating revenues, operating income and operating ratio.

Full year net income came in at $5.2 billion or $5.75 per diluted share over last year’s $4.4 billion or $4.71 per diluted share in 2013, 18 and 22 percent increases respectively. Operating revenue totaled a record $24.0 billion versus the $22.0 billion of 2013. Operating income saw an 18 percent increase to $8.8 billion.

“With 2014 behind us, we’re intently focused on the year ahead,” Koraleski said. “We’re entering the year well-resourced and we’re looking forward to safely providing efficient, value-added service for our customers, and increasing returns for our shareholders in 2015.”

 

cp-logo-240Canadian Pacific railway announced the lowest quarterly operating ratio in the company’s history and records set in net income, operating ratio and earnings per share for the fourth quarter of 2014.

The railway saw a 10 percent increase in revenues to an all-time high of C$1.76 billion. Net income rose to a record C$451 million or C$2.63 per diluted share. Operating ratio also saw a record 59.8 percent. Adjusted earnings for the fourth quarter jumped to C$460 million or C$2.68 per share over last year’s C$338 million or C$1.91 per share.

“I am proud of the team at CP, which continues to build momentum as we exited the year with double-digit revenue growth and a sub-60 operating ratio, proving again our ability to control costs while growing the top line,” CEO E. Hunter Harrison said. “In just two short years, CP has transformed from an industry laggard into a railway leader, and achieved its ambitious 2016 targets two full years ahead of schedule.”

CP also saw new records with their 2014 full-year results. Revenue climbed eight percent to an all-time high of C$6.62 billion for the railway, while operating ratio fell to a record 64.7 percent, a 520-basis point drop on an adjusted basis. Reported earnings per share rose 71 percent to a record C$8.46 while adjusted earnings per share also climbed 32 percent to C$8.50 for the year.

“CP’s remarkable transformation has allowed it to exceed its operational and financial goals for 2014, positioning the company to be nimble in the near-term and successful in the long run,” Harrison said. “CP fully recognizes the impact of short-term volatility in commodity prices, but given the diversity of its business and proven ability to control costs, we’re confident in our ability to execute on our plan going forward. We are just getting started.”

 

KCS_rail_logoKansas City Southern reports a record fourth quarter and record financials for the full year of 2014. The railroad saw record fourth quarter revenues of $643 million, an increase of four percent, with carload volumes five percent higher than in the fourth quarter of 2013.

Operating income saw a nine percent increase to $214 million over the $196 million that was reported for the same quarter of 2013. Operating ratio for the railroad also saw an increase to 66.7 percent, a 1.4 improvement over the fourth quarter 2013 numbers of 68.1 percent. Diluted earnings per share came in at $1.28 and adjusted diluted earnings per share came in at $1.27.

The railroad reports that revenue for the year came in at a record $2.6 billion, up nine percent over 2013. Carloads for the railroad increased by five percent over 2013 numbers.

Operating income for the full year came in at $847 million, a 15 percent increase over operating income reported for 2013. Operating ratio for 2014 came in at 67.1 percent, a 1.7 point improvement over 2013’s reported 68.8 percent. Reported net income totaled $504 million or $4.55 per diluted share, compared with 2013’s reported $353 million or $3.18 per diluted share.

“Kansas City Southern achieved record financial results with growth in all six commodity groups in 2014,” CEO and President David L. Starling said. “KCS met its stated target of high-single digit year-over-year revenue growth. Looking ahead to 2015, we believe KCS is well-positioned to maintain its growth momentum driven by a strengthening economy and unique franchise opportunities.”

 

ns_LogoNorfolk Southern railroad reported fourth quarter and record 2014 full-year results in a press release held Jan. 26.

Operating revenues for the railroad for the fourth quarter of 2014 came in even with the fourth quarter of 2013 at $2.9 billion. Income from railway operations was $891 million. Net income totaled $511 million for the quarter. Operating expenses were down one percent to $2.0 billion. Diluted earnings per share came in at $1.64, while operating ratio improved one percent to 69.0 percent.

Full-year records were set for the railroad, with railway operating revenues coming in at a record $11.6 billion, a three percent increase over 2013. Income from railway operations came in at a record $3.6 billion, up 10 percent from 2013. Net income came in at $2.0 billion. Operating expenses were up one percent to $8 billion. Operating ratio came in at 69.2 percent; a three percent improvement over 2013’s reported 71.0 percent. Diluted earnings per share are at $6.39 for the year.

“Norfolk Southern delivered another solid quarter of financial performance, capping a record-setting year during which our company achieved its best results for revenues, operating income, net income, earnings per share and operating ratio,” CEO Wick Moorman said. “For 2015, we plan to invest $2.4 billion in capital investments to maintain the safety and quality of our rail network, enhance service, improve operational efficiency and support growth opportunities.”

 

CN_red_logoCanadian National railway announced increased earnings for the fourth quarter and full-year of 2014. Net income for the fourth quarter increased to C$844 million versus the reported C$635 million recorded for the same quarter of 2013.

Diluted earnings per share saw an increase of 36 percent to C$1.03, while operating income also increased by 30 percent to C$1,260 million. Operating ratio improved 4.1 points to 60.7 percent for the quarter.

Full-year net income came in at C$3,167 million or C$3.76 per diluted share. Adjusted diluted earnings per share increased 23 percent for the year to C$3.76, with an adjusted net income of C$3,05 million. Car load volumes for the railway reached record levels for the year, up eight percent and revenue ton-miles up 10 percent.

CEO and President Claude Mongeau said, “CN delivered a strong fourth-quarter 2014 performance, concluding a remarkable year characterized by brutal first-quarter winter weather, followed by a strong rebound starting in March, and capped by record full-year freight volumes. CN is optimistic about its future prospects. The company is aiming to deliver double-digit earnings per share growth in 2015.”

Class I railroads report first quarter earnings

CSX_logoCSX reported to the public its first quarter 2014 earnings and dividend increase. The railroad announced net earnings of $398 million or $.040 per share. This is a decrease from last year’s first quarter reports of $462 million or $0.45 per share.

However, revenue for the quarter grew two percent to $3 billion on volume increases of three percent, with strength in merchandise markets and intermodal offsetting the declines in coal shipments.

Operating income for the railroad declined 16 percent to $739 million, while operating ratio increased 520 basis points to 75.5 percent, due to harsh weather. CSX estimates that weather interruptions in service increased expenses by around six cents per share. Optimistically, CSX expects modest full-year earnings growth in 2014.

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.

“The company is indebted to the dedicated men and women of CSX who worked tirelessly through one of the worst winters on record to keep the network running as fluidly as possible,” Chairman, President and CEO Michael J. Ward. “Thanks to the hard work of our employees, service levels are gradually recovering, and we are capitalizing on an economy that continues to show positive momentum.”

 

KCS_rail_logoIn an announcement made April 16, Kansas City Southern reported record first quarter revenues and carloads. Revenues for the first quarter were $607 million, an increase of 10 percent more than last year’s first quarter. The railroad also saw a four percent increase in carloads for the quarter.

Operating income came in at $160 million, but excluding lease termination costs, adjusted operating income came in at $190 million, a 17 percent increase over last year’s first quarter. The railroad saw an operating ratio of 73.7 percent or an adjusted operating ratio of 68.7 percent. This is a 1.8-point improvement over last year.

Diluted earning per share came in at $0.85 or adjusted diluted earnings per share were at $1.05 for the first quarter of 2014. This is an 18 percent increase over the first quarter of 2013. Net income came in at $94 million.

“We are pleased with how our company performed during the first quarter,” President and CEO David L. Starling said. “All six commodity groups reported year-over-year revenue gains led by Agriculture and Minerals, which increased 40 percent over the prior year. Later in the first quarter, we also recorded higher than expected utility coal volumes and revenues as a result of higher natural gas prices, which made coal a more competitive option benefitting certain plants we serve.

“While it is still early in the second quarter, KCS business levels have improved in April. The indication that our core business appears to be gaining strength provides us with positive momentum towards achieving the 2014 goals we outlined to investors in January.”

 

union_pacific_logoUnion Pacific reported a record first quarter in an earnings announcement made April 17. The railroad reports a net income of $1.1 billion or $2.38 per diluted share, up from the first quarter 2013 reports of $957 million or $2.03 per diluted share. Taht is a 17 percent increase over last year.

Operating revenues totaled $5.6 billion, up seven percent over last year’s first quarter operating revenue of $5.3 billion. Business volumes, which are measured by total revenue carloads, increased five percent. Agricultural products, industrial products, coal, intermodal and automotive all increased in volume for the quarter. Freight revenue increased a total of six percent for the quarter.

Operating ratio for the railroad was at 67.1 percent, a first quarter record and 2.0 points better than the first quarter of 2013. Operating income was up 14 percent to $1.85 billion.

“As we look forward, we’re watching the economy very closely, as well as the potential impacts of weather, particularly on our coal and grain business,” Jack Koraleski, CEO, said. “There’s still a lot of year ahead of us, but we are seeing signs of gradual economic improvement, and we’re encouraged by the opportunities it presents. With the power and potential of the Union Pacific franchise, we’ll leverage these opportunities to drive record financial performance and shareholder returns this year and in the years to come.

“We’re proud of the efforts of the men and women of Union Pacific, who worked tirelessly to serve our customers despite these weather challenges and helped us achieve such a solid start to the year.”

 

cp-logo-240In an announcement made early April 22, Canadian Pacific said the first quarter of 2014 had the best first quarter financial results in the company’s history.

The company saw a 16 percent increase in year-over-year improvement in earnings per share with a reported C$254 million or C$1.44 per diluted share. The first quarter of 2013 only reported C$217 million or C$1.24 per share.

Total revenues for the railway came in at C$1,509 million, an increase of one percent over last year’s first quarter. Operating expenses saw a four percent decrease to C$1,086 million. While operating income saw a 17 percent increase to C$423 million. Operating ratio also saw an improvement to 72.0 percent, a 380 basis point improvement.

“CP delivered solid results in a period that was severely impacted by extraordinary cold and severe winter weather conditions,” CEO E. Hunter Harrison said. “In the face of such difficult operating conditions, I am particularly proud of the women and men of CP who remained on the job 24/7, to keep the railway operating.

“Despite a slow start to the year and the reduced capacity which limited our ability to meet strong customer demand, we still have the utmost confidence in our ability to achieve our financial targets for 2014.”

 

CN_red_logoCanadian National railway reported increases in revenues in a teleconference held late April 22. The railway reports a net income for the first quarter 2014 of C$623 million or C$0.75 per diluted share. Net income for the same quarter of 2013 was only at C$555 million or C$0.65 per diluted share.

The company saw a five percent increase of operating income to C$820 million. Revenues saw a nine percent increase to C$2,693 million, while revenue ton-miles also saw a five percent increase and carloads saw a one percent increase.

Operating ratio for the railway deteriorated 1.2 points to 69.6 percent. The previous year’s quarter reported operating ratio at 68.4 percent. Free cash flow for the first quarter of this year came in at C$494 million, quite an increase over last year’s C$151 million.

“CN delivered solid first quarter results thanks to a dedicated team of railroaders who labored long and hard to keep us rolling through the harshest winter in decades,” CEO and President Claude Mongeau said. “The winter of a lifetime took its toll on network capacity and affected all of our customers, but I’m pleased that CN’s recovery is now well underway, with key safety, operating and service metrics returning to pre-winter levels.

“Witch continued focus on supply chain collaboration and solid execution, CN is reaffirming its 2014 financial outlook and increasing its capital envelope to C$2.25 billion in support of its commitment to growth, efficiency and safety.”

 

ns_LogoNorfolk Southern reported its first quarter financial results April 23. Net income for the railroad saw a decrease to $368 million or $1.17 per diluted share for the first quarter 2014. Net income for the same quarter of 2013 was at $450 million or $1.41 per diluted share. Although, $60 million or $0.19 per diluted share of the $450 million was due to a gain from a land sale.

Operating revenues for the railroad totaled $2.7 billion, a two percent decrease from first quarter 2013. Shipment volumes also decreased by one percent during the quarter. Income from railway operations came in at $667 million, three percent lower than last year.

Operating expenses for the first quarter came in at $2 billion, a one percent decrease from the same quarter of 2013. Operating ratio for the railroad was 75.2 percent versus 74.8 percent for the same period last year.

“Following the extreme winter weather across the U.S. rail network which impacted first-quarter results, we are seeing a rebound in shipments across all of our business,” said Wick Moorman, CEO. “Our people responded admirably to meet the challenges of the harsh conditions, and we remain focused on delivering superior service to our customers.”

Class I railroads release 4th quarter earnings

CSX_logoCSX Corporation announced its fourth quarter and full-year earnings for 2013 Jan. 15. The railroad reported net earnings of $426 million or $0.42 per share for the fourth quarter. These earnings were down from the same quarter in 2012, with earnings of $449 million or $0.44 per share. Earnings dropped $37 million from the third quarter of 2013.

The railroad also reported that revenue for the quarter increased by five percent to $3 billion. The increase was due to merchandise and intermodal markets.

“Supported by the strength of an expanding economy, we delivered six percent volume growth in the quarter, despite another sharp decline in coal,” said Michael J. Ward, who acts as chairman, president and chief executive officer for the company.

Annual net earnings for 2013 came in at $1.83 per share, up from 2012’s $1.79 per share. Revenue increased for the year by two percent to $12 billion, a record for the company. Operating income came in at $3.5 billion and the operating ratio increased to 71.1 percent for the year.

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.

 

ns_LogoNorfolk Southern published its fourth quarter and full-year earnings for 2013 January 22. The railroad reports a fourth quarter net income of $513 million or $1.64 per diluted share. Net income was 24 percent higher than recorded earnings for the same quarter 2012. Fourth quarter earnings were also up $31 million over third quarter earnings for the same year.

NS reported that the operating ratio improved five percent to 69.4 percent for the quarter. Operating revenues for the railroad totaled $2.9 billion, up seven percent from the same quarter last year. Income from railway operations was up 23 percent at $881 million.

For the year 2013, operating revenues for the railway reached $11.2 billion, up two percent over 2012. Income from railway operations came in at $3.3 billion for the year, four percent higher than last year. Net income rose nine percent higher than the previous year at $1.9 billion. Diluted earnings per share also saw an improvement of 12 percent at $6.04. Overall, the railway’s operating ratio improved by one percent to 71.0 percent for the year.

“Norfolk Southern’s team of safety and service-oriented employees drove our record-setting fourth quarter results through increased productivity, efficient network operations, and continued revenue gains,” Wick Moorman, NS CEO, said. “In 2014, we plan to invest $2.2 billion, a 12 percent increase over 2013, to maintain safe railway operations, purchase locomotives and freight cars, and support growth and productivity initiatives.

 

union_pacific_logoUnion Pacific announced their full-year earnings for 2013 as well as their fourth quarter earnings. The company stated that the fourth quarter of 2013 was their best quarter yet with records set.

The railroad reported a net income of $1.2 billion or $2.55 per diluted share for the fourth quarter, a 16 percent increase over last year. Last year’s results for the same quarter were only $1 billion or $2.19 per diluted share.

Operating revenue saw an increase of seven percent to more than $5.6 billion. The same quarter last year only saw an operating revenue of $5.25 billion. Operating income was up 14 percent, totaling $1.97 billion. UP’s operating ratio was a fourth quarter record at 65.0 percent.

“For the first time in six quarters, we reported overall volume growth, despite significantly weaker coal shipments,” said CEO Jack Koraleski. “The fourth quarter wrapped up another tremendous year for Union Pacific, with our overall financial performances exceeding all previous milestones.”

For 2013, UP reported a net income of $4.4 billion or $9.42 diluted share, up from 2012’s reported net income of $3.9 billion or $8.27 per diluted share. Operating revenue saw a record $21.96 billion for the railroad in 2013. Operating income also saw an increase of 10 percent, coming in at more than $7.4 billion. The 2013 operating ratio for the railroad was also a new record, coming in at 66.1 percent.

“As we look at 2014, we see signs that the economy is slowly strengthening. We’re well-positioned for economic growth and are confident in our ability to deliver on our customer’s growing transportation needs,” Koraleski said. “We’ll continue our unrelenting focus on both safety and service to our customers. We strongly believe in the power and potential of the Union Pacific franchise to drive even greater financial performance and shareholder returns in the years to come.”

 

KCS_rail_logoKansas City Southern Lines reports record fourth quarter revenues and record full-year 2013 revenues. The railroad saw an eight percent increase in revenue to $616 million over the fourth quarter of 2012.

Net income totaled $114 million or $1.03 diluted earnings per share for the quarter, a 12 percent increase over the same quarter last year. They also saw a two percent increase in carloads for the fourth quarter.

KCS’s operating income also saw an increase to $196 million for the quarter, a full 13 percent higher than 2012. Operating ratio came in at 68.1 percent for the railroad. Operating expenses also increased by six percent to $420 million for the quarter.

Full year 2013 revenue came in at a record $2.4 billion, up six percent over 2012. Carloads for the year increased two percent to 2.2 million. Operating income for the year is being reported at $739 million, an increase of 10 percent over 2012. The operating ratio for KCS was 68.8 percent for the year, a 1.1 point improvement over 2012.

“The year 2013 proved to be another very good year for Kansas City Southern,” said President and CEO David L. Starling. “2013 marks the fourth consecutive year KCS has recorded a double-digit percentage increase in its adjusted earnings per share. We expect to maintain our excellent growth momentum in 2014 and beyond.”

 

cp-logo-240Canadian Pacific Railway, Canada’s second-largest railroad, said fourth-quarter profit more than quintupled. Net income surged to C$82 million ($74 million), or 47 cents a share, from C$15 million, or 8 cents, a year earlier, and earnings per share for 2014 will rise 30 percent or more from last year, CP said. 

Since taking over in June 2012, Harrison has cut jobs and shut rail yards to bolster profit and close the operations gap with larger rival Canadian National Railway, his former employer. CP reported record operating ratio, a costs-to-revenue measure of efficiency, for the last quarter and said it expects more improvement this year. The railroad’s operating ratio improved to a record 65.9 percent in the quarter from 74.8 percent a year earlier, and the company said it’s targeting 65 percent or lower this year. 

“This was a solid quarter, with decent operating numbers,” Jason Seidl, a Cowen & Co. analyst in New York who rates the shares market perform, said in a telephone interview. “The guidance is for a minimum of 30 percent growth. This year they did much better than their original guidance, so if they do that again this year, they will be well above the consensus.” 

Canadian Pacific stock shares jumped 4.3 percent to C$165 at the close in Toronto, the biggest single-day increase since Oct. 23. The stock has gained 2.7 percent this year.

The 69-year-old Harrison, who came out of retirement to become Canadian Pacific’s CEO, insisted he still plans to lead the company for another two years before handing the reins to Chief Operating Officer Keith Creel. 

 

CN_red_logoCanadian National Railway Co. Jan. 30 said its fourth-quarter earnings increased to C$635 ($568 million), or 76 Canadian cents a share, up from C$610 million, or 71 Canadian cents, a year earlier, helped by higher petroleum product volumes and a stronger U.S. dollar. The company also boosted its quarterly cash dividend by 16 percent and reaffirmed its guidance for 2014.

The railroad, based in Montreal, was helped by strong energy markets. Revenue from the transport of petroleum and chemicals jumped 22% in the fourth quarter, while revenues from metals and minerals and forestry products also made double-digit gains. 

Revenue increased 8 percent to C$2.745 billion and operating expenses rose 5 percent to C$967 million. The company’s operating ratio rose to 64.8 percent from 63.6 percent. The operating ratio is the percentage of operating revenue consumed by operating costs, so an increase indicates a decline. 

“Key operating and service metrics remained solid, and we continued to drive incremental improvement in our broad safety record,” Chief Executive Claude Mongeau said in a statement. 

“CN sees good opportunities in 2014 in a number of markets, including intermodal, oil-and-gas-related commodities, Canadian and U.S. grain, and commodities related to the recovery in the U.S. housing market,” Mr. Mongeau said.

Class I railroads release 3rd quarter earnings

CSX_logoCSX Corporation announced Oct. 15 that they had net earnings of $463 million or $.046 per share for the third quarter of 2013. Earnings for the same quarter last year were $455 million or $.44 per share. Earnings are up by $8 million over last year, but down $72 million from the second quarter of this year.

The railroad reported revenues of $3 billion for the third quarter that resulted from higher volumes and pricing gains in merchandise and intermodal. CSX reports an operating income of $854 million and an operating ratio of 71.5 percent.

“CSX now expects full-year 2013 earnings-per-share to be slightly up from 2012 levels. In addition, the company remains on target to achieve its goal of sustaining a high-60s operating ratio by 2015, while remaining focused on attaining a mid-60s operating ratio longer-term,” CSX said.

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.

 

union_pacific_logoUnion Pacific reports best-ever quarterly results for the third quarter of 2013. The railroad reported a net income of $1.15 billion or $2.48 per diluted share for the third quarter. Last year’s figures for the same quarter were at $1 billion or $2.19 per diluted share.

Operating revenue for the railroad had a four percent increase to $5.6 billion over last year’s $5.3 billion. Union Pacific recorded an operating ratio of 64.8 percent, a best-ever quarterly record. Operating income totaled $1.96 billion, up 10 percent over last year for the same quarter.

“Union Pacific achieved all-time record financial results this quarter,” said Jack Koraleski, Union Pacific chief executive officer. “Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise. When combined with real core pricing and productivity gains, we more than offset flat volumes to generate a new, best-ever quarterly Operating Ratio of 64.8 percent.

“As we move through the fourth quarter, we continue to monitor the economic landscape. Supported by our diverse franchise, we remain agile and well positioned for economic recovery,” Koraleski added. “We’ll continue to focus on running a safe, efficient, and reliable network that generates greater value for both our customers and shareholders going forward.”

 

KCS_rail_logoKansas City Southern reports revenues of $622 million for the third quarter, an increase of eight percent over 2012’s third quarter and a three percent increase in carloads. With only $579 million in revenues for the second quarter of this year, KCS showed a large increase of $43 million from the second quarter to the third.

The railroad reports an operating income up 11 percent at $200 million and an operating ratio of 67.8 percent for the third quarter. Operating ratio improved over 2012 figures by 0.9 points.

Diluted earnings-per-share was up at $1.07 while KCS reported $0.82 for the same quarter last year. Adjusted diluted earnings-per-share showed an increase of 16 percent, coming in at $1.10 for the third quarter of 2013. Diluted earnings-per-share for the third quarter of 2012 were at $0.95.

“Looking ahead, we expect a strong end to the year benefited by growth in export grain shipments. We also look forward to long-term improvement in our operating ratio as we move forward with our plan to increase the percentage of equipment we own versus lease,” David L. Starling said, president and chief executive officer at KCS.

 

CN_red_logoCanadian National Railway announced a net income of C$724 million or C$1.67 per diluted share for the third quarter of 2013. The railway reported just C$664 million or C$1.52 per diluted share for the same quarter in 2012. CN is up just $7 million over last quarter.

The railroad reports a one-time expense of C$19 million (C$0.05 per diluted share) resulting from an income tax adjustment. Excluding this expense, earnings per share (EPS) saw an increase of 13 percent to C$1.72 from 2012’s EPS of C$1.52.

Revenues saw an eight percent increase to a quarterly record of C$2,698 million, which was driven by a four percent increase in revenue ton-miles, and a three percent increase in car loadings.

Operating income for the railroad also increased 10 percent to C$1,084 million and operating ratio also saw an improvement of 0.8 of a point to 59.8 percent.

“CN’s agenda of Operational and Service Excellence delivered outstanding financial results for the quarter. All our key operating metrics improved, service levels remained solid and we reached new levels of safety in our train operations,” President and Chief Executive Officer Claude Mongeau said. “With continued focus on supply chain collaboration and solid execution, the CN team is determined to grow its business safely and efficiently at a pace faster than the overall economy and to meet its full-year 2013 financial outlook.”

 

cp-logo-240Canadian Pacific Railway Limited revealed record quarterly earnings at C$324 million (a 45 percent increase) or C$1.84 per diluted share and its lowest operating ratio at 65.9 percent in the history of the company for the third quarter of 2013. Although a record for the third quarter, earnings for the second quarter of 2013 were higher by C$96 million. Adjusted net income, excluding a one-time tax item of C$7 million was C$331 million, an increase of 48 percent.

The company reports adjusted earnings per share (EPS) of C$1.88, a growth of 45 percent over the third quarter of 2012. Total revenues saw an increase of six percent to C$1.5 billion, while operating expenses saw a decrease of six percent down to C$1 billion.

Chief Executive Officer E. Hunter Harrison said, “By all standards, this was an outstanding quarter. The company’s focus on service execution while controlling costs is a testament to our team of dedicated, hardworking railroaders. We enter the fourth quarter with momentum and are well positioned for what I believe will be a record 2013.”

 

ns_LogoNorfolk Southern publicized its third quarter net income of $482 million, a 20 percent increase over the third quarter of 2012 today. The same quarter last year only saw a net income of $402 million. Net income was also up $17 million over the second quarter of this year.

Diluted earnings per share were at $1.53, up 23 percent over last year’s $1.24. Operating revenues for the railway were at $2.8 billion, five percent higher than the same quarter of 2012. Shipment volumes saw an increase of four percent.

Income garnered from railway operations was $849 million, up 16 percent. Operating ratio improved by three percentage points to 69.9 percent.

CEO Wick Moorman said, “Norfolk Southern delivered strong results, led by growth in our chemicals, metals/construction, intermodal, and automotive businesses, combined with ongoing productivity improvements. Even in the face of continuing weakness in the coal markets, our focus on service efficiency and velocity allowed us to provide superior performance for our customers and excellent results for our shareholders.”

 

Class I railroads report 2nd quarter earnings

CSX_logo

CSX Corporation announced July 16 second quarter net earnings of $535 million or $0.52 per share. For the second quarter of 2012, CSX earned $512 or $0.49 per share. According to these figures, CSX is up a profit of $23 million over last year’s earnings for the same quarter.

CSX attributes these profits to overall revenue growth, service and efficiency results, and other items such as tax and real estate. Revenue for the second quarter 2013 was a total of almost $3.1 billion. CSX was at an operating income of $963 million and an operating ratio of 68.6% for the quarter.

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.

CSX is up from last quarter, having reported a net income of $459 million or $0.45 per share. Revenue for the first quarter was at $2.96 billion, quite a bit less than this quarter’s reported $3.1 billion.

 

union_pacific_logoUnion Pacific Corporation announced July 18 that performance for the second quarter 2013 was the best they have ever reported at a net income of $1.1 billion or $2.37 per diluted share, an increase of five percent over last year’s second quarter earnings. Earnings for the same quarter last year were only $1 billion or $2.10 per diluted share.

UP saw an increase of operating revenue to $5.5 billion, while last year’s operating revenue for the same quarter was only $5.2 billion. The freight revenue was also at a five percent increase and their operating ratio of 65.7 percent was the best ever recorded at 1.3 points higher than the second quarter last year; and 0.9 points better than the previous best-ever record which was set in the third quarter of 2012.

Second quarter earnings are also up from the first quarter of this year. UP reported increased revenue of $5.29 billion for the first quarter, a great deal less than this quarter’s reported $5.5 billion.

 

KCS_rail_logoKansas City Southern (KCS) reported July 19 record revenues as well as record carloads for the second quarter 2013. KCS announced that the second quarter was up six percent over the second quarter 2012 with $579 million in revenues. Carloads saw an increase of three percent over last year as well.

The railroad saw an operating income of $179 million, 12 percent higher than the same quarter of the previous year and an operating ratio of 69.0 percent, a 1.5-point improvement.

Revenue growth for the second quarter was led by a 26 percent increase in Energy, a 20 percent increase in Automotive and a 13 percent increase in Intermodal revenues over last year. Revenues from Chemicals & Petroleum and Industrial & Consumer grew by 11 percent and four percent respectively over last year’s second quarter.

KCS saw a decrease in revenues from Agriculture and Minerals, which decline by 18 percent, due to droughts and a decrease in grain volumes. 

 

CN_red_logoCanadian National Railway (CN) announced July 22 that profits are up for the second quarter 2013 over the same quarter of 2012. Net income for the second quarter was C$717 million or C$1.69 per diluted share. Net income for the same quarter last year was only C$631 million or C$1.44 per diluted share.

CN reported a net gain of C$13 million that resulted from a gain on a non-monetary transaction with another railway. Excluding this transaction, it’s reported that CN saw an increase of diluted earnings per share (EPS) of 11 percent to C$1.66 for the second quarter. The same quarter last year was at C$1.50.

Revenues saw an increase of five percent to C$2,666 million that was reportedly driven by a five percent increase in revenue ton-miles and a two percent increase in carloadings.

CN reported that operating income increased six percent to C$1,042 million with an operating ratio (defined as operating expenses as a percentage of revenue) improvement of 0.4 of a point to 60.9 percent.

“We executed strongly during the second quarter, with service and operating metrics on a steady improvement trend. This performance underscores our agenda of Operational and Service Excellence, which is key to achieve solid revenue growth at low incremental cost. … Despite slower volume growth than anticipated, the CN team will maintain a keen focus on growing revenues faster than the overall economy as well as on tightly managing costs to meet our full-year financial outlook,” said President and Chief Executive Officer Claude Mongeau. 

 

ns_LogoNorfolk Southern (NS) announced Tuesday, July 23 an 11 percent decrease in income for the second quarter 2013. Income was at $465 million for the second quarter of 2013 whereas they were at $524 million for the same quarter of 2012.

Diluted earnings per share were at $1.46, nine percent lower than they were in 2012 at $1.60 per diluted share.

The operating revenues for the railroad came in at $2.8 billion, three percent lower than in 2012. However, the operating ratio came in at 70.2 percent, which is four percent higher than the ratio reported for the second quarter of 2012.

Fuel surcharges came in at $306 million, $59 million less than last year’s reported amounts. General merchandise revenues rose to two percent to $1.6 billion. Coal revenues fell 17 percent to $626 million due to lower average revenue per unit and a four percent decline in volumes. NS reported that Intermodal revenues increased four percent to $588 million and volumes increased five percent due to continued domestic and international growth.

“In the second quarter, Norfolk Southern delivered solid results, supported by growth in our chemicals, intermodal, and automotive businesses, despite continuing weakness in the coal markets,” CEO Wick Moorman state. “We continue to focus on service efficiency and velocity, which is enabling us to control operating expenses and deliver superior performance to our customers.”

 

cp-logo-240Canadian Pacific (CP) reports record highs in operating ratio Wednesday, July 24. The operating ratio came in at 71.9 percent, a 1,060 basis-point improvement and an all-time quarterly record for the railroad.

Operating income came in at C$420 million, an increase over the second quarter of last year by 76 percent.

Total revenues for CP were C$1.5 billion, an increase of ten percent; also a quarterly record. Operating expenses were low at C$1.1 billion, a decrease of four percent. CP reported a net income of C$252 million or C$1.43 per diluted share.

The second quarter of 2012 had a net income of only C$103 million or C$0.60 per share. The second quarter of 2013 had a 138 percent improvement in year-over-year earnings per share. 

 

NS, CSX optimistic about 2013

A few weeks shy of their respective first quarter earnings announcements East Coast-based Class I railroads Norfolk Southern and CSX are feeling pretty good about their businesses.

Norfolk Southern CEO Wick Moorman stated in the company’s 2012 annual report that the future is promising for the rail carrier, which saw 2012 come in as its second best year ever in its history in terms of revenue at $11 billion, operating income at $3.1 billion, net income at $413 million, and earnings per share at $5.37.

Read the complete article at Logistics Management.

 

Wrap up: Major rails’ 3d quarter 2011 profits

BNSF reported a 9 percent improvement in profit for the third quarter 2011 versus the third quarter 2010.

The third-quarter operating ratio of 71.7 percent was slightly higher than the 70.8 percent for third-quarter 2010. 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.

BNSF, which is privately held by Berkshire Hathway, operates 28,000 route miles in 28 states and two Canadian provinces.

Canadian National reported a 19 percent increase in profit for the third quarter 2011 versus the third quarter 2010.

CN said a 4 percent increase in carloadings and a 9 percent increase in revenue, coupled with “rigorous cost control” drove its higher third quarter earnings.

CN’s third quarter 2011 operating ratio of 59.3 percent improved from the 60.7 percent operating ratio during the third quarter 2010. 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.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.


Canadian Pacific’s third quarter 2011 profit fell by 5 percent versus third quarter 2010.

CP’s third quarter 2011 operating ratio deteriorated to 75.8 percent, more than two percentage points higher than its 73.7 percent operating ratio for the third quarter 2010. 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.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

CSX reported a 12 percent increase in profit for the third quarter 2011 versus the third quarter 2010, much of it the result of higher freight rates as traffic volume slowed.

The railroad said higher fuel surcharges improved its bottom line, offsetting higher costs. CSX said also that its earnings were helped by increased coal exports to China that offset a weakness in domestic coal shipments. Coal accounts for some 33 percent of CSX revenue.

CSX’s third quarter 2011 operating ratio deteriorated to 70.4 percent versus 69.1 percent for the third quarter 2010. 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.

CSX operates some 21,000 route miles in 23 states and the District of Columbia.


Kansas City Southern reported a 99 percent improvement in profits for the third quarter 2011 versus third quarter 2010, driven by higher freight rates and a record level of carloadings, boosted through increased production of automobiles in Mexico destined for U.S. markets.

“These achievements are all the more impressive given the operating challenges caused by prolonged flooding in the Midwest, particularly along the Missouri River,” said CEO David Starling. “The flooding resulted in the closure of a primary rail line into Kansas City from mid-June through Labor Day, which significantly disrupted grain and coal traffic.”

KCS’s operating ratio of 66.6 for the third quarter 2011 was a sharp improvement from the 73.5 percent in third quarter 2010. 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 operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

Norfolk Southern reported a 24 percent increase in third quarter profit versus third quarter 2010, citing increased freight rates and a 23 percent boost in coal hauled for export.

The third quarter produced for NS “all-time records for income from operations and earnings per share, while also establishing third-quarter records for net income and operating ratio,” said NS CEO Wick Moorman.

The NS third quarter 2011 operating ratio of 67.5 was a third-quarter record low and 2.1 percentage points below its third-quarter 2010 operating ratio of 69.6 percent. 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.

NS operates some 20,000 route miles in 22 states and the District of Columbia.

Union Pacific reported a 16 percent increase in profits for the third quarter 2011 versus third quarter 2010, citing price increases and fuel surcharges in the face of a sluggish economy, weather-related difficulties in parched Texas and sharply higher fuel prices.

UP’s operating ratio of 69.1 percent for the third quarter 2011 was slightly higher than the record 68.2 percent operating ratio it posted in the third quarter 2010. 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.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

As BNSF is now privately held, it does not report its earnings.

Wrap up: Major rails’ 1st quarter 2011 profits

Most major North American freight railroads reported strong earnings for the first quarter 2011 versus first quarter 2010.

Following is a wrap-up for the quarterly earnings reported by the railroads to the investment community.

Not included is BNSF, which is privately held and does not report its financial results to the investment community.

Mention is made of each railroad’s operating ratio. 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 higher is profit.

Canadian National

Canadian National reported a 31 percent increase in first quarter 2011 profit versus first quarter 2010. This comes following a 19 percent increase in CN profit for calendar year 2010.

CN’s operating ratio for the first quarter 2011 was 69 percent, slightly better than the 69.3 percent reported for first quarter 2010. The railroad’s fourth-quarter 2010 operating ratio was 63.6.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

Canadian Pacific

Canadian Pacific Railway was the only major North American rail system reporting a drop in profit for the first quarter 2011 compared with first quarter 2010. CP cited severe winter weather as the cause of its profit decline.

CP’s calendar-year 2010 profit increased by 39 percent.

The railroad’s first quarter 2011 operating ratio soared to 90.6 compared with 82.3 in the first quarter 2010. CP’s fourth quarter 2010 operating ratio was 77.6.

CP said its 15,143 employee count increased by 613 during the quarter, but gave no indication of whether it would add employees the remainder of 2011.

First quarter 2011 train speeds fell by almost 14 percent and the number of train accidents soared by 57 percent — both attributed to a dramatic increase in the number of avalanches in the Canadian Rockies and winter-long blowing snow throughout CP’s North American rail network.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

CSX

CSX profit jumped 30 percent during the first quarter 2011 versus the first quarter 2010, the railroad reported April 19. This comes on the heels of a 35 percent improvement in operating profit for calendar year 2010.

The CSX employee headcount rose in March to 30,464 employees, up 3 percent from March 2010, the railroad said.

The CSX operating ratio for the first quarter 2011 was a record low 72.5 for any first quarter. The fourth quarter 2010 CSX operating ratio was 71.1.

CSX operates some 21,000 route miles in 23 states and the District of Columbia.

Kansas City Southern

Kansas City Southern’s first-quarter 2011 profit was almost double that of the first quarter 2010. This followed an 82 percent increase in profit for calendar-year 2010.

The employee headcount remained constant at 6,080. The railroad did not indicate whether it would be increasing its headcount in 2011.

The KCS first quarter operating ratio declined significantly, from 75.2 percent the first quarter 2010 to 73.8 for the first quarter 2011. The railroad’s fourth-quarter 2010 operating ratio was 73.2.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

Norfolk Southern

Norfolk Southern reported a 26 percent increase in profit for first quarter 2011 versus first quarter 2010. This follows a 45 jump in NS profit for calendar-year 2010.

NS said it would add some 1,100 new workers during 2011, returning employment to the same level as in 2008.

NS operating ratio for first quarter 2011 was 77.1 percent, higher than the 75.2 percent in the first quarter 2010, owing, in part, to severe winter weather. The fourth-quarter 2010 NS operating ratio was 71.9 percent.

NS operates some 20,000 route miles in 22 states and the District of Columbia.

Union Pacific

Union Pacific profit rose 24 percent in first quarter 2011 compared with first quarter 2010, This follows a 47 percent jump in Union Pacific profit for calendar-year 2010.

UP said the railroad would increase its 43,000 employee headcount by about 4,500 in 2011.

The railroad reported a best-ever first quarter operating ratio of 74.7 percent — one of the more difficult for railroads because of winter weather. The fourth quarter 2010 UP operating ratio was 73.2.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.