In the days after a train carrying highly flammable oil to Yorktown plunged off its tracks in downtown Lynchburg, dumping 15 cars into the James River and sparking a fire so intense that emergency crews had to simply let it burn itself out, federal track inspectors found more than 20 significant defects on the rail line through that city.
On top of that, six weeks before the derailment, federal inspectors found 14 faults on the line in Lynchburg, according to Federal Railroad Administration records obtained by the Daily Press through a Freedom of Information Act request.
BILLINGS, Mont. — U.S. railroads forced to turn over details of their volatile crude oil shipments are asking states to sign agreements not to disclose the information. But some states are refusing, saying Thursday that the information shouldn’t be kept from the public.
Federal officials last month ordered railroads to make the disclosures after a string of fiery tank-car accidents in North Dakota, Alabama, Virginia and Quebec, where 47 people died when a runaway oil train exploded in the town of Lac-Megantic.
The disclosures due midnight Saturday include route details, volumes of oil carried and emergency-response information for trains hauling 1 million gallons or more of crude. That’s the equivalent of 35 tank cars.
A CSX Corp. train carrying crude oil derailed and burst into flames in downtown Lynchburg, Va., on Wednesday (April 30), spilling oil into the James River and forcing hundreds to evacuate.
CSX said 15 cars on a train traveling from Chicago to Virginia derailed at 2:30 p.m. EDT. Fire erupted on three cars, the company said. Photos and video from the scene showed high flames and a plume of black smoke. It was the second oil-train accident this year for CSX.
CSX 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.”
In 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 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.”
In 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.”
Canadian 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.”
Norfolk 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.”
CSX 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.
Norfolk 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 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.”
Kansas 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.”
Canadian 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 Sei dl, 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.
Canadian 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.
CSX 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 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.”
Kansas 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.
Canadian 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.”
Canadian 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.”
Norfolk 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 6 9.9 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.”
OMAHA, Neb. – CSX Corp. remains optimistic the railroad’s profits will improve over the next two years even though coal demand has remained stubbornly weak.
Officials at the Jacksonville, Fla.-based railroad said Wednesday that shipments of intermodal containers and merchandise will continue to be a larger part of their business.
The first phase of CSX Transportation’s National Gateway project, which will allow trains carrying maximum-sized freight containers stacked two-high to travel between Ohio and East Coast ports, has been completed on time and within budget, the railroad said.
The project involves enlarging tunnels and improving clearance heights beneath bridges to allow trains taller than previously allowed to pass through.
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 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.
Kansas 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.
Canadian 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.
Norfolk 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.”
Canadian 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.
BIRMINGHAM, Ala. – A federal appeals court July 1 ruled that Alabama discriminated against railroads by forcing them to pay a sales tax on fuel when it exempts its competitors – trucking and barge companies.
The U.S. 11th Court of Criminal Appeals issued its opinion in CSX Transportation, Inc.’s appeal in its 2008 lawsuit against the Alabama Department of Revenue.
BILLINGS, Mont. — U.S. railroads forced to turn over details of their volatile crude oil shipments are asking states to sign agreements not to disclose the information. But some states are refusing, saying Thursday that the information shouldn’t be kept from the public.
CSX 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.
In 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.
Union 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.
In 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.
Canadian 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.
Norfolk 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.