Posts Tagged ‘profit’

CSX says railroad won’t deliver double-digit growth

CSX_logoOMAHA, Neb. – CSX now says that the railroad won’t deliver the double-digit profit growth it promised this year because coal demand remains weak.

Executives remain optimistic about the railroad’s prospects because service is improving, but they said Wednesday, a day after posting first-quarter earnings, that mid-to-high single-digit profit growth is likely in 2015.

Read the complete story at the StarTribune.

3d quarter rail profits wrap-up

BNSF reported a 22 percent increase in profit for the third quarter 2012 versus third quarter 2011, citing improved intermodal (trailers and containers on flat cars) and automotive traffic.

BNSF’s third quarter 2012 operating ratio of 68.3 percent was a significant improvement over the 71.7 percent for third quarter 2011. 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 operates in 28 states and two Canadian provinces

 

Canadian National reported a less than one percent drop in profit for the third quarter 2012 versus third quarter 2011.

CN’s third quarter 2012 operating ratio of 60.6 percent increased from 59.3 percent from third quarter 2011. 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 reported a 20 percent improvement in profit for the third quarter 2012 versus third quarter 2011. The railroad attributed the improvement to cost cuts, efficiency improvements and an increase in automotive traffic.

CP’s third quarter 2012 operating ratio of 74.4 was an improvement from the 75.8 percent operating ratio for third quarter 2011. 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 2 percent drop in profit for the third quarter 2012 versus third quarter 2011, citing lower overall freight volume and lower fuel-cost recovery even as export coal, automotive and intermodal shipments (trailers and containers on flat cars) showed increases.

The CSX third quarter 2012 operating ratio of 70.5 percent was virtually unchanged from the 70.4 percent for third quarter 2011. 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 9.8 percent drop in profit for the third quarter 2012 versus third quarter 2011, even as carloads rose and operating ratio improved. The railroad cited as the reason an almost 70 percent higher tax bill in Mexico stemming from a rise in the value of the peso against the dollar and continuing rebuilding expenses two years after Hurricane Alex damaged rail facilities south of the border. About half the railroad’s revenue flows from its operations in Mexico.

KCS’s third quarter 2012 operating ratio of 68.7 was a 2.6 percentage point improvement from third quarter 2011 and the best in company history. 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 27 percent decline in profit for third quarter 2012 versus third quarter 2011, citing reductions in coal and merchandise volume. The slump in coal shipments has resulted in employee furloughs.

NS’s third quarter 2012 operating ratio of 72.9 was a more than five percentage point increase over the third quarter 2011 operating ratio of 67.5. 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.

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

   

Union Pacific profit rose 15 percent in third quarter 2012 compared with third quarter 2011. The railroad said price increases and more automotive and chemical shipments overcame a drop in coal loadings.

Union Pacific’s third quarter 2012 operating ratio of 66.6 percent was 2.5 percentage points better than third quarter 2011, and a 0.4 percentage point improvement from the previous record set in the second quarter 2012.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.

 

Second quarter 2012 rail profits wrap-up

BNSF reported a 16 percent increase in profit for the second quarter 2012 versus second quarter 2011.

BNSF’s second quarter 2012 operating ratio of 71.1 percent was a more than 3 percentage point improvement over second quarter 2011. 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 operates in 28 states and two Canadian provinces

 

Canadian National reported a 17 percent increase in profit for the second quarter 2012 versus second quarter 2011. The railroad said its revenue was helped by a nine-day strike at Canadian Pacific – the additional traffic overcoming declines in coal, fertilizer and grain shipments.

CN’s second quarter 2012 operating ratio of 61.3 was unchanged from second quarter 2011. 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 reported 20 percent drop in profit for the second quarter 2012 versus second quarter 2011, citing a nine-day strike.

CP’s second quarter 2012 operating ratio weakened to 82.5 percent from the second quarter 2011 operating ratio of 81.7. 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 1.2 percent improvement in profit for the second quarter 2012 versus second quarter 2011. CSX said a 27 percent jump in automotive traffic and an 8 percent increase in trailers and containers offset a significant decline in coal traffic volume.

The CSX second quarter 2012 operating ratio of 68.7 percent was an improvement over the 69.3 percent operating ratio for the second quarter 2011. 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 70 percent improvement in profit for the second quarter 2012 versus second quarter 2011, citing a gain from financial restructuring along with a 23 percent boost in trailers and containers and a 15 percent gain in automotive revenue, which overcame a 24 percent drop in coal traffic.

KCS’s second quarter 2012 operating ratio of 70.5 was 1.2 percentage point improvement over the second quarter 2011 operating ratio of 71.7. 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 5.9 percent slide in profit for the second quarter 2012 versus second quarter 2011. Coal is a major source of revenue for Norfolk Southern, and a 15 percent plunge in coal revenue could not be offset by increases in revenue from automotive and chemicals traffic and trailers and containers.

NS’s second quarter 2012 operating ratio of 67.5 – a record quarterly low for the railroad — was a significant two-percentage-point improvement from the 69.5 percent operating ratio in second quarter 2011. 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.

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

 

Union Pacific profit rose 28 percent in second quarter 2012 compared with second quarter 2011. The railroad said higher freight rates and fuel surcharges, along with growing demand, offset weak coal volume. UP said it was the “best-ever quarterly results.”

Union Pacific’s second quarter 2012 operating ratio of 67.0 percent was a 4.3 percentage point improvement over the 71.3 percent operating ratio for the second quarter 2011. 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.

BNSF second quartaer results have not yet been reported.

Rail engine out-chugging U.S. economy

America is still mired in recession, but the railroad industry continues to show financial strength.

Most railroads over the past week reported strong improvements in profit and operating efficiency for the first quarter 2011. Stocks of Union Pacific and Kansas City Southern hit 52-week highs this week, while Norfolk Southern’s stock reached an all-time high.

For the first 16 weeks of 2011, U.S. rail carloadings are up 4 percent over the same period in 2010, while intermodal (trailers and containers atop flat cars) are up 8.9 percent.

In expectation of an improving economy, railroads have boosted orders for new freight cars, ordering as many during the first quarter 2011 as for the entire calendar-year 2010.

What’s driving the rails? Fuel efficiency has a lot to do with increased intermodal traffic. The Federal Railroad Administration says railroads are from 1.9 to 5.5 times more fuel efficient than trucks, and with diesel fuel prices spiking, there is a clear competitive advantage available to railroads so long as they can maintain reliable and consistent service quality.