RALEIGH, N.C. — A lawsuit filed Friday, May 1 by Amtrak and CSX alleges that a trucking company caused a March train derailment that injured 55 people by failing to take safety precautions or warn that the track was blocked.
The lawsuit in a Raleigh federal court blames Guy M. Turner Inc. of Greensboro for the March 9 crash in which an Amtrak passenger train collided with an oversized tractor-trailer.
The lawsuit says the driver blocked the crossing in disregard of safety signs and failed to notify CSX, which owns the track, or Amtrak that the railway was blocked. It also says that the trucking company’s Turner Transfer division failed to take reasonable safety precautions.
CSX Corporation announced increases in its first quarter earnings April 14. Net earnings for the first quarter of 2015 came in at $442 million, an 11 percent increase over the $398 million reported for the same quarter of 2014.
The company announced a 13 percent increase of earnings per share to $0.45 over last year’s reported $0.40 per share for the same quarter. Operating income also saw an increase of 14 percent to $843 million and operating ratio improved 330 basis points to 72.2 percent. Revenue for the quarter came in at $3.0 billion.
The CSX board of directors has approved an increase in the quarterly dividend and a new share repurchase program. The quarterly dividend has increased 13 percent to $0.18 per share. The new $2 billion share repurchase program is expected to be implemented over the next 24 months.
“In this dynamic economic and business environment, CSX’s core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders,” Chairman and CEO Michael J. Ward said. “Our commitment and confidence in CSX’s future is underscored by the positive shareholder actions we’re taking today.”
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 National Railway reported its financial and operating results for the first quarter ended Mar. 31. The railway saw increases across the board in its earnings.
CN announced net income for the quarter at C$704 million or C$0.86 per diluted share, up from 2014’s first quarter reported net income of C$623 million or C$0.75 per diluted share.
Diluted earnings per share saw a 30 percent increase to C$0.86 from the reported C$0.66 from the first quarter last year. Net income also saw a 28 percent increase to C$704 million over last year’s reported C$551 million. Operating income saw a 30 percent increase to C$1,063 million. Revenues for the first quarter increased 15 percent to C$3,098 million; revenue ton-mile increased by seven percent and carloadings increased nine percent. CN’s operating ratio improved by 3.9 points to 65.7 percent over last years 69.6 percent.
“CN turned in a solid first-quarter performance thanks to strong freight demand and continued productivity improvements, helped in part by easier winter conditions compared with last year’s polar vortex,” President and CEO Claude Mongeau said. “CN is pleased to affirm its outlook for double-digit EPS growth in 2015 versus last year’s adjusted diluted EPS of C$3.76, despite weaker than expected energy markets and a mixed economy.
“As always we remain committed to growing our business faster than the overall economy and doing so at low incremental cost. We are equally committed to running a safe railway and are increasing our 2015 capital envelope by C$100 million to C$2.7 billion to sustain additional rail infrastructure safety investments.”
Canadian Pacific Railway announced the lowest first quarter operating ratio in the company’s history and the highest-ever net income for the period. Operating ratio came in at a record 63.2 percent for the first quarter 2015, an 880 basis point improvement over the first quarter of 2014. Net income came in at an all-time quarterly high of C$320 million or C$1.92 per diluted share, an improvement of 33 percent.
CP’s revenues climbed 10 percent to a first quarter record of C$1.67 billion and adjusted earnings per share saw an improvement of 59 percent to C$2.26.
“CP’s success in the first quarter of the year is a result of hard work by its people and a business model that responds nimbly to any shift in economic conditions,” CEO E. Hunter Harrison said. “CP’s relentless focus on rail safety and cost control has created a solid foundation for growth, innovation and creative collaboration with customers.
“The diversity of the business and efficiency of CP’s network and team has the company well positioned for the rest of the year. We are confident in our plan and our people, and are committed to achieving our goals for 2015.”
Kansas City Southern reported decreases in earnings for the first quarter of 2015 as compared to the first quarter earnings of 2014.
Revenue decreased one percent to $603 million. KCS’ operating income also saw a one percent decrease to $178 million. Operating ratio saw a 0.2 point increase to 70.5 percent or an adjusted operating ratio of 68.9 percent. The first quarter of 2014 saw an operating ratio of 73.7 percent. Diluted earnings per share also saw a two percent decrease to $0.91 and adjusted diluted earnings per share came in at $1.03.
Overall, the railroad reports that carload volumes were one percent higher than in the first quarter of 2014. KCS also saw a one percent decrease in operating expenses of $415 million for the quarter. Reported net income totaled $101 million for the first quarter of 2015.
“Lower than expected carloadings in a few commodity groups, particularly utility coal, coupled with a weak peso and the impact of low U.S. fuel prices on fuel surcharge revenues, combined to exert pressure on first quarter consolidated revenues,” CEO David L. Starling said. “We believe our ability to scale operating expenses and capital where necessary, provide KCS with the opportunity to improve earnings as 2015 progresses. In addition, we remain fully committed to managing our railroad in a manner designed to allow our company and its stockholders to benefit from the abundant growth opportunities that should emerge in the years ahead.”
Union Pacific Corporation reported mostly increases in earnings for the first quarter of 2015.
The railroad reported a first quarter net income of $1.2 billion or $1.30 per diluted share, a nine percent increase over last year’s first quarter of $1.1 billion or $1.19 per diluted share. Operating income increased seven percent to $2 billion and operating ratio improved 2.3 points to 64.8 percent.
Operating revenue stayed at $5.6 billion while total revenue carloads declined two percent compared to the first quarter of 2014.
“While we took actions during the quarter to adjust for volume decline, we did not run an efficient operation,” President and CEO Lance Fritz said. “We’ve had some challenges to start off the year, but we’re taking the steps needed to work through those challenges and realize the opportunities we see ahead. We expect to see solid improvement in network performance and cost efficiency over the coming months. As we leverage the strengths of our diverse franchise, we continue to be intently focused on safety, service and shareholder returns.”
Norfolk Southern Corporation reported a decrease in earnings for the first quarter 2015. Net income for the railroad saw a 16 percent decrease to $310 million compared to the $368 million that was reported for the first quarter of 2014. Income from railway operations came in at $606 million, a nine percent decrease compared to last year’s first quarter. Diluted earnings per share for the first quarter came in at $1.00 compared to last year’s $1.17.
NS reported a five percent decrease to operating revenues to $2.6 billion due to a lower fuel surcharge, lower coal volumes and lower average revenue per unit. Total volume saw a two percent increase, reflecting gains in intermodal and merchandise traffic. Railway operating expenses declined three percent to $2.0 billion, also due to lower fuel costs. NS reported an operating ratio of 76.4 percent compared to last year’s operating ratio of 75.2 percent for the same quarter.
“Our first quarter results reflected continued weakness in our coal markets along with a slowdown in network velocity in part caused by severe winter weather which impacted both our expenses and our volumes,” CEO Wick Moorman said. “Looking ahead, while the market uncertainties remain, the resources that we are deploying are driving improved network performance, and we expect our service levels will be significantly higher in the second half.”
OMAHA, 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.
On Feb. 22 the U.S. Department of Transportation’s (DOT) Federal Railroad Administration (FRA) announced that is now able to move forward with its full-scale forensic investigation into the derailment outside of Montgomery, W. Va., followed by a slower start earlier this week hampered by weather and safety concerns.
During a media conference in Boomer, W. Va., FRA announced next steps in its ongoing investigation into the incident, which includes participation from the Pipeline and Hazardous Materials Safety Administration (PHMSA). The FRA is the lead Federal agency charged with investigating Monday’s derailment.
“With the response and recovery effort now complete, and the dangers associated with the initial derailment now minimized, the FRA will now begin its thorough investigation into the derailment,” said Transportation Secretary Anthony Foxx. “I thank the emergency responders who stepped into harm’s way to evacuate the affected communities, and I am eternally grateful that no residents were seriously injured.”
On Monday, Feb. 16, a 109-car unit train pulled by two locomotives derailed 27 tank cars carrying Bakken crude oil near the Kanawha River, approximately 30 miles southeast of Charleston, WV. The Department’s FRA and PHMSA, the Environmental Protection Agency, the U.S. Coast Guard, and West Virginia state agencies have been at the site of the derailment since Monday evening.
“We are grateful to the first responders for evacuating residents safely, and grateful to the Coast Guard, the EPA and state and local agencies that worked together to immediately address urgent conditions at the derailment site,” said Sarah Feinberg, acting Administrator of the Federal Railroad Administration. “Now it is time for the FRA to begin our investigation into this incident in earnest, to identify any warranted enforcement actions, and to continue our work to ensure accidents like these do not continue.”
A full team of FRA investigators will remain in the Montgomery area for several days, and possibly weeks, as the investigation continues.
Initial activity at the derailment site focused on response and recovery, including controlling fires, containment of the crude oil release into surrounding areas, and protection of communities and drinking water sources near the derailment site. Although inclement weather, safety concerns for the community and its water supply, evacuations and fire containment limited the DOT’s initial steps in its investigation and data collection, the Department is now moving aggressively with a full-scale, thorough investigation into the cause of the derailment.
The FRA will now inspect all damaged tank cars, recover damaged rail from the accident site, and review maintenance and inspection records for rolling stock, track, signals, and locomotives. Equipment recovered from the accident site, including tank cars, tank car wheels and trucks, and damaged rail will be reassembled, documented, or reconstructed by FRA investigators at a location near the derailment site.
The FRA will systematically examine all recovered components to either eliminate or identify issues related to wheels, track, axles or other components that could have caused or contributed to the accident.
Additionally, the PHMSA is conducting testing of the crude oil product involved in the derailment to determine gas content, volatility, tank car performance and to ascertain compliance with federal hazardous material regulations related to proper product classification. The results of the inquiry will be included in FRA’s final investigative report.
“We continue to look into the composition of Bakken crude oil, which is why we took samples of the product to verify appropriate classification and whether emergency responders received the accurate information to respond to this derailment,” said Tim Butters, Acting Administrator of the Pipeline and Hazardous Materials Safety Administration.
Investigations into derailments can take significant time and resources. A full team of FRA investigators will remain in the Montgomery area for several days, and possibly weeks, as the investigation continues.
As the Department’s investigation continues, other federal and state agencies will continue to monitor the derailment site and surrounding areas to ensure it remains safe for residents. The EPA and the West Virginia Department of Environmental Protection will continue to work closely with the U.S. Coast Guard to test and monitor water quality and atmospheric conditions in the vicinity of the derailment.
Video images of a fireball billowing from the wreckage of a derailed train hauling Bakken crude are adding to pressure on federal regulators to act on new safety standards for oil shipments.
While there were no fatalities in the CSX Corp. accident in rural West Virginia on Feb. 16, the footage of flames and smoke rekindles public alarm over the prospect of tank cars rumbling through urban areas, according to a former U.S. Transportation Department official and a railroad consultant.
MOUNT CARBON, W.Va. – Fires burned for hours after a train carrying more than 100 tankers of crude oil derailed in a snowstorm in West Virginia, sending a fireball into the sky and threatening the water supply of nearby residents, authorities and residents said Tuesday.
Officials evacuated hundreds of families and shut down two water treatment plant following the Monday afternoon derailment. The West Virginia National Guard was taking water samples to determine whether the oil had seeped into a tributary of the Kanawha River, state public safety division spokesman Larry Messina said.
The nation’s four major railroads are still carrying less freight than they were before the recession. But the last decade has been an exhilarating ride for them nonetheless — an era of growing profits, soaring stock prices and ambitious investments.
For Jacksonville-based CSX Corp., freight volume has dropped 7 percent since 2004. Meanwhile, its shares have climbed to $35 from less than $6, and its net income has risen 450 percent, to almost $1.9 billion in 2013, according to SEC filings.
CSX Corp. laid off 52 management workers, all of them in Jacksonville, according to a company spokeswoman.
The company finished the round of layoffs Monday, spokeswoman Melanie Cost said.
“This is all related to the fact that we’re in a competitive industry,” she said. “The separation of the employees was difficult – it’s a difficult decision.”
In 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 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.”
Canadian 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.”
Kansas 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.”
Norfolk 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.”
Canadian 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.”
WASHINGTON – Amtrak is taking action to improve the on-time performance (OTP) of its trains that operate over tracks controlled by other railroads. In a complaint filed on Nov. 17, Amtrak is asking the Surface Transportation Board (STB) to investigate Norfolk Southern Railway and CSX Transportation for causing unacceptable delays for passengers traveling between Chicago and Washington, D.C., on the Capitol Limited service.
Amtrak is taking this action under Section 213 of the Passenger Rail Investment and Improvement Act which mandates that the STB initiate an investigation upon the filing of a complaint by Amtrak if the on-time performance of an intercity passenger train falls below 80 percent for two consecutive quarters. In addition, under federal law, Amtrak has a statutory right to preference in the dispatching of intercity passenger trains before freight trains.
Due to persistent excessive delays caused by NS and CSXT freight train interference, the OTP of the Capitol Limited at its endpoint terminals was 2.7 percent for the quarter ending Sept. 30, down from an already substandard 33.6 percent the previous quarter. The delays are continuing as Amtrak had to provide bus transportation between Toledo and Chicago for six days in October to better accommodate passengers when Capitol Limited trains had often been eight to ten hours late.
Poor on-time performance creates a major disruption for Amtrak customers due to delayed trains and missed connections. It also negatively impacts Amtrak and state-supported services through decreased ridership, lost revenues and higher operating costs.
Amtrak has taken additional actions to help improve the OTP of passenger trains including filing an amended complaint with the STB seeking an investigation of Canadian National Railway for causing unacceptable delays for passengers on the Illini/Saluki service in Illinois; twice testifying before the STB about the poor OTP of Amtrak trains; and establishing a Blue Ribbon Panel of rail and transportation leaders to identify infrastructure and operational improvements to address rail traffic gridlock in Chicago.
The Capitol Limited operates daily between Chicago and Washington, via Harpers Ferry, W. Va., Cumberland, Md., Pittsburgh, Cleveland, Toledo, South Bend, Ind., and intermediate stops.
RALEIGH, N.C. — A lawsuit filed Friday, May 1 by Amtrak and CSX alleges that a trucking company caused a March train derailment that injured 55 people by failing to take safety precautions or warn that the track was blocked.
Canadian National Railway reported its financial and operating results for the first quarter ended Mar. 31. The railway saw increases across the board in its earnings.
Canadian Pacific Railway announced the lowest first quarter operating ratio in the company’s history and the highest-ever net income for the period. Operating ratio came in at a record 63.2 percent for the first quarter 2015, an 880 basis point improvement over the first quarter of 2014. Net income came in at an all-time quarterly high of C$320 million or C$1.92 per diluted share, an improvement of 33 percent.
Kansas City Southern reported decreases in earnings for the first quarter of 2015 as compared to the first quarter earnings of 2014.
Union Pacific Corporation reported mostly increases in earnings for the first quarter of 2015.
Norfolk Southern Corporation reported a decrease in earnings for the first quarter 2015. Net income for the railroad saw a 16 percent decrease to $310 million compared to the $368 million that was reported for the first quarter of 2014. Income from railway operations came in at $606 million, a nine percent decrease compared to last year’s first quarter. Diluted earnings per share for the first quarter came in at $1.00 compared to last year’s $1.17.
On Feb. 22 the U.S. Department of Transportation’s (DOT) Federal Railroad Administration (FRA) announced that is now able to move forward with its full-scale forensic investigation into the derailment outside of Montgomery, W. Va., followed by a slower start earlier this week hampered by weather and safety concerns.
Video images of a fireball billowing from the wreckage of a derailed train hauling Bakken crude are adding to pressure on federal regulators to act on new safety standards for oil shipments.
The nation’s four major railroads are still carrying less freight than they were before the recession. But the last decade has been an exhilarating ride for them nonetheless — an era of growing profits, soaring stock prices and ambitious investments.
WASHINGTON – Amtrak is taking action to improve the on-time performance (OTP) of its trains that operate over tracks controlled by other railroads. In a complaint filed on Nov. 17, Amtrak is asking the Surface Transportation Board (STB) to investigate Norfolk Southern Railway and CSX Transportation for causing unacceptable delays for passengers traveling between Chicago and Washington, D.C., on the Capitol Limited service.