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.

CSX_logo

Net Earnings: $445 million or $0.47 per share; down from $533 million or $0.56 per share
Revenue: Down 12 percent
Operating Income: Down 17 percent to $840 million
Operating Ratio: Increased 210 basis points to 68.9 percent
Click here to read CSX’s full earnings report.
 
KCS_rail_logo
Net earnings: $120 million or $1.11 diluted earnings per share, a 10 percent increase
Revenue: $569 million, a decrease of 3 percent
Operating Income: $220 million, an 18 percent increase
Operating Ratio: 61.3 percent, improvement of 6.8 points
Click here to read Kansas City Southern’s full earnings report.
 
CP_Logo_RGB
Net Earnings: C$328 million or C$2.15 per share, a decline of 16 percent
Revenue: C$1.45 billion, a decrease of 12 percent
Operating Income: C$551 million, a decrease of C$95 million
Operating Ratio: 62 percent, an increase of 110 basis points
Click here to read Canadian Pacific’s full earnings report.
 
union_pacific_logo
Net Earnings: $1.0 billion or $1.17 per diluted share, a decline of 15 percent
Revenue: $4.8 billion, down 12 percent
Operating Income: $1.7 billion, down 15 percent
Operating Ratio: 65.2 percent, an increase of 1.1 points
Click here to read Union Pacific’s full earnings report.
 
CN_red_logo
Net Earnings: Decreased to C$858 million or C$1.10 per diluted share
Revenue: Decreased to C$2,842 million, a 9 percent decrease
Operating Income: C$1,549 million, a 12 percent decline
Operating Ratio: Second quarter record of 54.5 percent, an improvement of 1.9 points
Click here to read Canadian National’s full second quarter earnings report.
 
ns_Logo
Net Earnings: $405 million or $1.36 diluted earnings per share, a decline in net earnings and a 4 percent decline in earnings per share.
Revenue: $2.5 billion, down 10 percent
Operating Income: $770 million, a 5 percent decrease
Operating Ratio: Improved to 68.6 percent, a 140 basis point improvement or 11 percent reduction
Click here to read Norfolk Southern’s full second quarter earnings report.
 
Note: Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CSX_logoCSX Corporation announced declining financial results for the first quarter 2016. Net earnings for the railroad decreased to $356 million or $0.37 per share, down from first quarter 2015 reported net earnings of $442 million or $0.45 per share.
“As we managed through the impact of the continued coal decline and other market forces during the first quarter, CSX took aggressive actions to improve efficiency, reduce costs and streamline resources across the network to further reshape the company,” CEO Michael J. Ward said.
Revenue for the quarter declined 14 percent, reflecting a lower fuel recovery, a 5 percent volume decline and a $95 million year-over-year decline in other revenue. Expenses also decreased by 12 percent, driven by efficiency gains of $133 million and lower volume-related costs of $64 million. CSX reported a decrease to operating income of $139 million to $704 million. At the same time, the operating ratio increased 90 basis points year-over-year to 73.1 percent.
“While CSX delivered strong efficiency gains in the first quarter, we continue to expect full-year earnings per share to decline in 2016 as a result of ongoing coal headwinds combined with other market fundamentals. At the same time, CSX remains focused on meeting and exceeding customer expectations while driving further efficiency savings to maximize shareholder value and achieve a mid-60s operating ratio longer term.”
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.
 
KCS_rail_logoIn a press release April 19, Kansas City Southern (KCS) released their first quarter 2016 financial results.
Revenue decreased by 7 percent to $563 million. Operating income increased 5 percent to $188 million. Carload volumes for the quarter were 5 percent lower than in the first quarter 2015. Revenue declined 1 percent.
Operating expenses decreased by 12 percent to $375 million. Operating ratio came in at 66.6 percent, a 2.3 point improvement as compared with the reported 70.5 percent of the first quarter 2015. Diluted earnings per share were $0.99. Adjusted diluted earnings per share were $1.03.
“Despite flooding that shut down key portions of our U.S. rail network for over three weeks, KCS delivered solid earnings and operating results,” said CEO David L. Starling. “That we overcame this very significant challenge while simultaneously scaling costs across the network clearly demonstrates KCS’ ability to react quickly to rapid and unexpected changes to its operating environment.”
 
CP_Logo_RGBCanadian Pacific Railway (CP) announced its lowest-ever first quarter operating ratio of 58.9 percent and diluted earnings per share of C$3.51 (an 83 percent increase from C$1.92) or adjusted diluted earnings per share of C$2.50 (an 11 percent increase from C$2.26) for the first quarter 2016. CP reports that their operating ratio improved 430 basis points year-over-year and for a third straight quarter was below 60 percent. At 58.9 percent, operating ratio is the lowest-ever when compared to adjusted operating ratios in previous quarters, CP said.
“The precision railroading model works in all economic environments,” said CP CEO E. Hunter Harrison. “Despite weakness in the economy and volume headwinds, we focused on what we can control – our costs and our commitment to providing reliable service – and delivered a record performance.”
Revenues for the railroad were down 4 percent to C$1.59 billion from 2015’s first quarter revenues of C$1.67 billion. Operating income increased 7 percent to C$653 million from C$612 million. Net income rose 69 percent to C$540 million from C$320 million. Adjusted income was up 2 percent to C$384 million from the reported C$375 million of the first quarter last year.
“I am proud of what the team continues to produce quarter after quarter in these difficult times and we remain optimistic in our outlook given signs of stabilization within the Canadian economy and in key global markets,” Harrison said. “As market conditions improve and volumes increase, our team of professional railroaders will be ready. Furthermore, we are confident in our plan to deliver shareholder value, which includes the announcement of a new share repurchase program that demonstrates our continued confidence over the long-term.”
 
union_pacific_logoUnion Pacific Corporation (UP) reported declines in first quarter 2016 revenues.
Operating revenue was down 14 percent to $4.8 billion. The railroad reported a first quarter net income of nearly $1.0 billion or $1.16 per diluted share, down 11 percent as compared to last year’s first quarter of $1.2 billion or $1.30 per diluted share. Operating income was down 15 percent to $1.7 billion and operating ratio went up 0.3 points to 65.1 percent.
“In this challenging environment, we have continued our intense focus on operating safely and efficiently, managing our resources, and improving our customer experience,” said CEO Lance Fritz. “As a result, the quarterly operating ratio came in at 65.1 percent, up only 0.3 points from last year, as solid core pricing and productivity improvements helped to offset an 8 percent decline in total volumes.”
 
ns_LogoNorfolk Southern Corporation (NS) announced strong financial results for the first quarter 2016.
Income from railway operations was up 19 percent to $723 million; while net income also saw a 25 percent increase to $387 million as compared to last year’s first quarter reported $310 million. NS reported that a first quarter record was set for operating ratio, which came in at 70.1 percent. Diluted earnings per share were $1.29, up 29 percent as compared with the reported diluted earnings per share of $1.00 for the first quarter 2015.
Railway operating revenues fell 6 percent to $2.4 billion, while operating expenses also decreased 13 percent to $1.7 billion.
“Our strong first-quarter results demonstrate the significant progress we are making in line with our strategic plan,” said CEO James A. Squires. “Since I became CEO in June, our team has been committed to streamlining operations, reducing expenses and maintaining superior customer service levels. Our focus on strengthening Norfolk Southern is yielding results, and the company is now on track to achieve productivity savings of about $200 million and an operating ratio below 70 in 2016.”
NS is implementing a strategic plan to reduce costs, drive profitability and enhance value for all NS shareholders. Through this plan, NS expects to achieve annual productivity savings of more than $650 million by 2020 and an operating ratio below 65 percent by 2020.
 
CN_red_logoCanadian National Railway (CN) announced mostly positive financial results for the first quarter 2016.
The railway reported a 13 percent increase in net income to C$792 million, while diluted earnings per share increased 16 percent to C$1.00. Operating income also increased 14 percent to C$1,217 million. CN reported a decrease in revenues by 4 percent to C$2,964 million. Carloadings declined 7 percent and revenue ton-miles also declined 9 percent. Operating expenses saw a decline of 14 percent to C$1,747 million. Operating ratio improved 6.8 points to 58.9 percent.
CEO Claude Mongeau said, “CN delivered a very solid quarterly performance in a challenging economic environment. We successfully aligned our resources with the reduced volume level to achieve strong efficiency gains, while continuing to offer superior customer service and significantly improving our safety performance. These achievements allowed the CN team to deliver record first-quarter financial results.”

KCS_rail_logoRailway Age reported that Kansas City Southern announced that its principal subsidiary will, in 2016, invest approximately $20 million into construction and improvement projects. Read the entire story here.

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 hurri
cane 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.”

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.

CSX_logoCSX Corporation announced all-time record quarterly financial results for the second quarter of 2015. Operating income for the railroad came in at more than $1 billion for the first time in company history. The railroad also saw an all-time record in operating ratio of 68.8 percent.

Net earnings came in at $553 million or an all-time record of $0.56 per share, an increase from the reported $529 million or $0.53 per share of the second quarter of 2014. CSX expects to deliver mid-to-high single digit earnings per share growth for 2015.

“While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter,” Chairman and CEO Michael J. Ward said. “We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders.”

Revenue declined six percent due to the impact of lower fuel recovery. At the same time, continued low fuel prices and savings from efficiency initiatives reduced expenses for the railroad by nine 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.

 

KCS_rail_logoKansas City Southern reported a decrease in earnings in a press release July 17. The railroad reportedly saw a 10 percent decrease in revenue to $586 million as compared to the second quarter of 2014.

Operating income saw a decrease of 13 percent to $187 million. Operating ratio saw a 1.1-point increase to 68.1 percent compared with last year’s second quarter operating ratio of 68.3 percent. Reported net income totaled $112 million or $1.01 per share, a 15 percent decrease compared to the reported $130 million or $1.18 per diluted share for the second quarter 2014.

Overall, the railroad reported that carload volumes were six percent lower for the quarter. Second quarter revenue declined in all commodity groups except chemicals and petroleum, which grew by one percent. However, operating expenses also saw a decrease of eight percent to $399 million.

“KCS continued to scale its operations in both the U.S. and Mexico and has made strides in improving its network fluidity,” stated CEO David L. Starling. “Our actions contributed to the company attaining a solid second quarter operating ratio despite volume challenges, particularly in its energy commodity group. We expect our system performance and operating metrics to continue to improve throughout the remainder of the year.

“As evidenced in the weekly industry carload data, there are still uncertainties in many of the primary markets served by rail. However, KCS’ average daily volumes increased each month throughout the second quarter and the initial results from the first few weeks of July suggest the positive trend may be continuing.”

 

CN_red_logoCanadian National Railway reported increases in revenue for the second quarter of 2015. Net income saw an increase to C$886 million or C$1.10 per diluted share, over last year’s reported C$847 million or C$1.03 per diluted share for the same quarter. These results included a deferred income tax expense of C$42 million (C$0.05 per diluted share) resulting from the enactment of a higher provincial corporate income tax rate.

Excluding the deferred income tax expense, adjusted diluted earnings per share increased 12 percent to C$1.15 as compared to last year’s second quarter reported diluted earnings per share of C$1.03.

Operating income saw an increase of eight percent to C$1,362 million, while revenues for the quarter were flat at C$3,125 million. Carloadings decreased by three percent and revenue ton-miles declined by seven percent.

Operating ratio for the railway improved by 3.2 points to 56.4 percent over last year’s reported 59.6 percent.

“I’m proud of our very solid second quarter results, driven by the team’s swift action to recalibrate resources and double-down on efficiency, while continuing to improve customer service,” President and CEO Claude Mongeau said. “We’re focused on our long-term agenda and investing C$2.7 billion in CN’s capital program this year to support it, with an emphasis on the integrity and safety of the network.”

 

cp-logo-240In a press release June 21, Canadian Pacific Railway announced the highest-ever net income for the second quarter and the lowest operating ratio for the period in the company’s history.

Net income rose to a record quarterly high of C$390 million or C$2.36 per diluted share, an improvement of 12 percent. Adjusted earnings per share gained 16 percent to C$2.45. Revenues for the railway remained unchanged at C$1.65 billion.

Operating income climbed 10 percent to C$646 million. Operating ratio fell to a second-quarter record of 60.9 percent, a 420-basis-point improvement. Adjusted earnings per share advanced 16 percent to C$2.45.

“CP remains disciplined during this period of economic uncertainty in identifying opportunities to control costs and improve efficiency to offset near-term headwinds,” CEO E. Hunter Harrison said. “Even in the face of this economic slowdown, CP’s commitment to providing the best service at the lowest cost will continue to serve us well moving forward.”

 

union_pacific_logoUnion Pacific reported a decrease in earnings for the second quarter in a press release June 23. Operating revenue was down 10 percent to $5.4 billion as compared to the second quarter of 2014. Net income for the railroad came in at $1.2 billion or $1.38 per diluted share, a three percent decline as compared to last year’s reported net income of $1.3 billion or $1.43 per diluted share.

Operating income is down 11 percent to $1.9 billion. UP’s operating ratio of 64.1 percent is 0.6 points worse compared to the second quarter of 2014. The company also repurchased 8.0 million shares in the second quarter at an aggregate cost of $834 million.

“Solid core pricing gains were not enough to overcome a significant decrease in demand,” President and CEO Lance Fritz said. “Total volumes in the second quarter were down six percent, led by a sharp decline in coal. Industrial products and agricultural products also posted significant volume decreases. However, we made meaningful progress right sizing our resources to current volumes, and I am encouraged to report that we made these improvements while posting strong safety performance.

“While the volume outlook remains uncertain, we remain laser focused on operating safely and efficiently no matter what the market environment. We will continue to reduce costs and improve productivity as we further align resources with demand. Longer term, we continue to be optimistic about the strengths of our diverse rail franchise.”

 

ns_LogoNorfolk Southern railroad reported decreased earnings results for the second quarter of 2015.

Net income for the quarter was $433 million, a 23 percent decrease compared to the $562 million record set in the same quarter of 2014. Operating revenues saw a decrease of 11 percent to $2.7 billion, a result of lower fuel surcharges and coal volumes. Gains in intermodal and merchandise traffic were offset by losses in coal volumes.

Income from railway operations declined 20 percent to $814 million. Railway operating expenses also saw a decrease of six percent to $1.9 billion. Diluted earnings per share came in at $1.41. NS’s railway operating ratio was 70.0 percent.

“While we face short-term pressure, particularly as we clear fuel surcharge revenue and coal headwinds, Norfolk Southern is well positioned to continue improving service, which will reduce costs and add value to our customers,” CEO James A. Squires said. “Growth within the intermodal franchise, consumer spending, housing-related momentum and improved manufacturing activity all support an optimistic longer-term outlook. We have a strong legacy of success, and we are taking the right steps to continue value creation for our customers, the communities we serve, our employees and our shareholders.”

CSX_logoCSX 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.

 

CN_red_logoCanadian 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.”

 

cp-logo-240Canadian 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.”

 

KCS_rail_logoKansas 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_logoUnion 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.”

 

ns_LogoNorfolk 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.”

KCS_rail_logoKansas City Southern announced Feb. 20 that as part of its succession planning process, Patrick J. Ottensmeyer has been appointed president, effective March 1, 2015. He will continue to report to David L. Starling, who remains chief executive officer.

Ottensmeyer is currently the company’s executive vice president and chief marketing officer. In his new role, he will continue to be responsible for sales and marketing with additional responsibilities for operations, which includes transportation, engineering, mechanical, network operations, operations support and information technology.

“I am excited about Pat’s appointment as president of our company,” said Starling. “He has served as the company’s chief financial officer and, most recently, its chief marketing officer, which has prepared him for his new role as president.”

Ottensmeyer has more than 15 years of railroad industry experience, holding various positions within KCS and previously with the BNSF Railway. He has also held executive level positions in the banking industry. He holds a bachelor of science in finance from Indiana University.

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama.

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.”