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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.”

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.”

CSX_logoIn a press release Oct. 14, CSX announced record third quarter profits. The railroad said that operating income increased 16 percent and operating ratio improved 220 points. Operating income came in at $976 million with an operating ratio of 69.7 percent. CSX also saw volume increases of seven percent.

Revenue increased to $3.2 billion, eight percent over the same period last year. Net earnings were announced at $509 million, up $0.51 per share from the net earnings of $455 million for the third quarter of 2013.

“As the economy continues to expand, the company’s record third-quarter results are built on the foundation of CSX’s network reach, sustainable growth opportunities, and the efforts of our 31,000 employees,” President, Chairman and CEO Michael J. Ward.

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 reports record quarterly revenues and carloads in a press release for the third quarter of 2014. The railroad recorded record revenues of $678 million, an increase of nine percent over the same quarter last year.

Operating income saw a 15 percent increase to $229 million over last year’s third quarter and operating ratio came in at 66.1 percent, a 1.7-point improvement. Net income for the quarter totaled $138 million or $1.25 per diluted share, a 17 percent increase.

The railroad credits the increases to a four percent increase in carloads. Automotive carloads increased by 28 percent, while carloads of industrial and consumer products saw a 13 percent increase.

Operating expenses came in at six percent higher than 2013 expenses. Operating expenses were $448 million for the quarter.

“KCS achieved record quarterly financial results as a result of the continued strength and diversity of our franchise,” President and CEO David L. Starling said. “An operating ratio of 66.1 percent was attained primarily due to volume growth, especially in the automotive and grain commodity groups, as well as system efficiency and cost controls.

“We are optimistic about the remainder of the year and reaffirm our updated 2014 goals outlined to investors in September. Looking ahead, we expect KCS’ long-term growth to be fueled by system-wide opportunities, which position KCS very well over the next several years.”

 

cp-logo-240Canadian Pacific Railway reports record financial results for the third quarter. The company claims the third quarter results are the strongest in the company’s history.

Net income for the railway rose 26 percent to a record C$400 million or C$2.31 per diluted share compared to last year’s third quarter net income of C$324 million or C$1.84 per share. Revenue saw a nine percent increase to a record C$1.670 billion while operating expenses also rose four percent to C$1.049 billion. Operating income rose 19 percent to C$621 million, the highest that the railway has ever seen. Operating ratio fell to a record low of 62.8 percent, an improvement of 310 base points.

“The CP team delivered another quarter of impressive results,” CEO E. Hunter Harrison said. “Going forward, we will continue to execute on our plan of delivering safe, superior service to our customers, focusing on further efficiency and capacity initiatives and building on our solid foundation for growth.

“Despite recent volatility in commodity prices, we are confident in the strength of the franchise and are on track to finish the year with CP’s strongest quarter to date.”

 

CN_red_logoCanadian National Railway reported increases in net income, operating income and revenues for the third quarter. Net income saw a 21 percent increase to C$853 million, up from last year’s C$705 million. Diluted earnings per share came in at C$1.04, also up from last year’s recorded C$0.84 per diluted share.

Operating income for the railway increased 19 percent to C$1,286 million. Revenues and car loadings set all-time quarterly records with revenues increasing 16 percent to C$3,118 million and car loadings increasing 11 percent to 1,475. Revenue ton-miles also grew by 13 percent. CN saw an improvement in operating ratio by one point to 58.8 percent.

“CN delivered outstanding third-quarter financial results while improving customer service levels and maintaining industry-leading operating efficiencies. Solid execution by our team of railroaders enabled us to accommodate the significantly higher freight volume generated by a record Canadian grain crop, strong energy markets and new business, particularly in intermodal and automotive,” President and CEO Claude Mongeau said. “The results underscore CN’s commitment to investing ahead of the curve in resources and rail infrastructure and playing our role as a true backbone of the economy.”

 

ns_LogoNorfolk Southern reported a 16 percent increase in net income of $559 million for the third quarter. The third quarter of 2013 only saw a net income of $482 million. Diluted earnings per share were also up 17 percent to $1.79 over last year’s $1.53 per diluted share.

Operating revenues saw an increase to $3.0 billion, up seven percent. Income from railway operations also saw an improvement to $998 million, up 18 percent. Operating ratio for the railroad saw an improvement by four percent to 67.0 percent.

“Norfolk Southern reported another record-setting quarter during which we achieved our best third-quarter results in revenues, operating income, net income, earnings per share and operating ratio,” CEO Wick Moorman said. “Higher traffic volumes along with continued gains in productivity drove these excellent results. We remain focused on ensuring we can support continued demand for freight rail transportation by hiring additional employees, investing in new equipment, and completing capacity projects in order to provide our customers with the freight rail service they expect today and in the future.”

 

union_pacific_logoUnion Pacific railroad reports record financial results are at an all-time high for the third quarter in a press release Oct. 23. Net income came in at a $1.4 billion or $1.53 per diluted share, a 23 percent improvement. Last year’s results for the same quarter were at $1.15 billion or $1.24 per diluted share.

Operating revenues increased 11 percent to $6.2 billion versus the $5.6 billion the railroad saw in the same quarter last year. Operating income also saw an increase to $2.3 billion, up 19 percent over last year’s numbers. Operating ratio saw an improvement of 2.5 points to 62.3 percent.

The railroad attributes these new records to a seven percent increase in revenue carloads, a coal volumes increase and volume incre
ases in agricultural products, industrial products, intermodal, automotive and chemicals.

“Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong volume growth,” CEO Jack Koraleski said. “As we continue to focus on improving our service, we are encouraged by the accomplishments we achieved in the quarter, including a two and a half point improvement in our operating ratio to a record 62.3 percent.”

ns_LogoBULLS GAP, Tenn. (WVLT) — “See tracks? Think train!” That’s the name of a new nation-wide safety campaign. Norfolk Southern and other railroads have teamed up with the non-profit, Operation Lifesaver.

The group’s safety train is making its way to 9 cities in Tennessee and Virginia. It’s all part of a 5 day, 364 mile trip to raise awareness about being alert and staying safe around railroad tracks.

From Cleveland, Tennessee to Lynchburg, Virginia — the train has one goal.

Read the whole story at Local8now.com. 

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

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

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

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

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

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

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

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

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

 

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

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

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

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

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

 

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

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

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

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

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

 

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

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

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

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

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

 

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

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

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

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

eeoc-logoCompany refused to allow employee with disability to return to work after treatment, federal agency charges

ATLANTA – A Norfolk, Va.-based railway company unlawfully discriminated against an employee because of his disability, degenerative disc disorder, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed Sept. 23 in Atlanta.

According to the EEOC’s suit, Norfolk Southern Railway Company violated federal law by not allowing a laborer to return to work after receiving treatment for his disability and being cleared by his treating physician to return to work with no restrictions.

According to the EEOC’s complaint, Norfolk Southern’s medical director disregarded the treating physician’s opinion as to the employee’s ability to work and determined he was medically disqualified from working without ever examining him. Norfolk Southern subsequently terminated the employee.

Disability discrimination violates the Americans with Disabilities Act (ADA), which requires employers to not discriminate against employees with disabilities or a record of a disability. In addition, employers who perceive employees as disabled when they are not disabled also violate the ADA. The EEOC filed suit (EEOC v. Norfolk Southern Railway Company, Civil Action No. 1:13-cv-03126) in U.S. District Court for the Northern District of Georgia, Atlanta Division after first attempting to reach a pre-litigation settlement through its conciliation process. The EEOC is seeking reinstatement, back pay and compensatory and punitive damages for the employee, as well as injunctive relief designed to prevent future discrimination.

“An employer cannot terminate an employee because of a disability, or merely because it perceives that person to be disabled,” said Robert Dawkins, regional attorney for the EEOC’s Atlanta District Office. “Here, the employee was ready, willing and able to work, but was fired based on preconceived notions about his abilities. Such conduct violates the ADA.”

Bernice Williams-Kimbrough, district director of the Atlanta office, said, “The EEOC is committed to stopping workplace disability discrimination in Georgia and across the country. Given the size of the employer, this lawsuit could assist in protecting the rights a large number of employees.”

The Atlanta District Office of the EEOC oversees Georgia and parts of South Carolina.

The EEOC is responsible for enforcing federal laws against employment discrimination. Further information is available at www.eeoc.gov.

CSX_logo

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

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

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

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

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

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

 

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

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

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

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

 

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

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

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

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

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

 

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

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

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

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

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

 

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

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

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

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

 

 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.

Read the complete article at The Birmingham News.

OSHA logo; OSHAWASHINGTON – Norfolk Southern Railway Co. has been ordered to pay $1,121,099 to three workers following an investigation by the U.S. Department of Labor’s Occupational Safety and Health Administration, which found that the company violated the whistleblower provisions of the Federal Railroad Safety Act.

Two investigations, conducted by OSHA staff in Chicago and Pittsburgh, found that three employees were wrongfully fired for reporting workplace injuries. In addition to monetary remedies, the company has been ordered to expunge the disciplinary records of the three whistleblowers, post a notice regarding employees’ whistleblower protection rights under the FRSA and train workers on these rights.

Railroad carriers are subject to the FRSA, which protects employees who report violations of any federal law, rule or regulation relating to railroad safety or security, or who engage in other protected activities.

“The Labor Department continues to find serious whistleblower violations at Norfolk Southern, and we will be steadfast in our defense of a worker’s right to a safe job – including his or her right to report injuries,” said acting Secretary of Labor Seth D. Harris. “When workers can’t report safety concerns on the job without fear of retaliation, worker safety and health suffer, which costs working families and businesses alike.” 

One investigation involved a crane operator based in Fort Wayne, Ind., who was removed from service after reporting an eye injury requiring the extraction of a sliver of metal and rust ring from his eye. The injury occurred while he was operating a crane in support of a bridge-building operation in Albany, Ind. The employee was taken out of service and formally terminated on Aug. 24, 2010, after an internal investigation determined he had made false statements concerning the injury.

OSHA’s investigation concluded that the worker would not have been terminated if he had not reported the injury. The agency has ordered the railroad to pay him a total of $437,591.70 in damages, which includes $100,000 in compensatory damages for pain and suffering, $175,000 in punitive damages, and $156,518.94 in back wages and benefits. It also includes compensation of $6,072.76 to the crane operator for penalties incurred when he had to cash in savings bonds prior to their maturity date after being terminated. In addition to damages, the company has been ordered to pay reasonable attorney fees. Further, OSHA has ordered the railroad to reinstate the worker to the proper seniority level, with vacation and sick days that he would otherwise have earned.

OSHA’s second investigation involved a thermite welder and a welder’s helper based in western Pennsylvania. Both employees had worked at the railroad for more than 36 years without incident when they reported injuries sustained as a result of an accident caused by another vehicle that ran a red light and hit a second vehicle, which in turn collided with the company truck in which they were riding.

The employees initially reported minor shoulder area pain plus some stiffness and soreness. Later, when questioned by management, they initially declined medical treatment, but as the pain increased, sought and received treatment at a local hospital. They were then taken out of service pending an investigative hearing and formally terminated. Management concluded that the employees’ reports about their condition were false and conflicting and constituted misconduct.

OSHA’s investigation found that the employees were terminated for reporting injuries to management. The agency has ordered the railroad to pay them $683,508 in damages, including $300,000 in punitive damages; $233,508 in lost wages, benefits and out-of-pocket costs; and $150,000 in compensatory damages for pain and suffering. Interest on back pay due will accrue daily until the employees are paid. In addition to damages, the company has been ordered to pay reasonable attorney fees.

These actions follow several other orders issued by OSHA against Norfolk Southern Railway Co. in the past two years. OSHA’s investigations have found that the company continues to retaliate against employees for reporting work-related injuries, and these actions have effectively created a chilling effect in the railroad industry.

“The Labor Department’s responsibility is to protect all employees, including those in the railroad industry, from retaliation for exercising these basic worker rights,” said Dr. David Michaels, assistant secretary of labor for occupational safety and health. Railroad workers must be able to report work-related injuries without fear of retaliation.”

Norfolk Southern Railway Co. is a major transporter/hauler of coal and other commodities, serving every major container port in the eastern United States with connections to western carriers. Its headquarters are in Norfolk, Va., and it employs more than 30,000 union workers worldwide.

Any party to these cases can file an appeal with the Labor Department’s Office of Administrative Law Judges within 30 days of receipt of the findings.

On July 16, 2012, OSHA and the U.S. Department of Transportation’s Federal Railroad Administration signed a memorandum of agreement to facilitate coordination and cooperation for enforcing the FRSA’s whistleblower provisions. Between August 2007, when OSHA was assigned responsibility for whistleblower complaints under the FRSA, and September 2012, OSHA received more than 1,200 FRSA whistleblower complaints. The number of whistleblower complaints that OSHA currently receives under the FRSA surpasses the number it receives under any of the other 21 whistleblower protection statutes it enforces except for Section 11(c) of the Occupational Safety and Health Act of 1970. More than 60 percent of the FRSA complaints filed with OSHA involve an allegation that a railroad worker has been retaliated against for reporting an on-the-job injury.

OSHA enforces the whistleblower provisions of the FRSA and 21 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, worker safety, public transportation agency, maritime and securities laws. Employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government.

Employees who believe that they have been retaliated against for engaging in protected conduct may file a complaint with the secretary of labor to request an investigation by OSHA’s Whistleblower Protection Program. Detailed information on employee whistleblower rights, including fact sheets, is available at http://www.whistleblowers.gov.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.

BNSF reported a 15 percent increase in profit forf the first quarter 2012 versus first quarter 2011, citing improved pricing and higher fuel surcharges.

BNSF’s first quarter 2012 operating ratio of 74.4 percent was one percentage point lower than for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

BNSF operates in 28 states and two Canadian provinces.

 

Canadian National reported a 16 percent increase in profit for the first quarter 2012 versus first quarter 2011, saying its bottom line was helped by a mild winter and improved economic conditions.

CN’s first quarter 2012 operating ratio of 66.2 percent was almost 3 percentage points better than its 69.0 operating ratio for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

Canadian Pacific reported a 318 percent increase in profit for the first quarter 2012 versus first quarter 2011.

The key was a more than 10 percentage point improvement in CP’s operating ratio, which fell to 80.1 percent for the first quarter 2012 – down from 90.6 for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

Even with sharply reduced coal loadings, CSX reported a 14 percent increase in profit for the first-quarter 2012 versus first-quarter 2011. CSX credited price hikes and increased shipments of automobiles, metals and intermodal (trailers and containers on flatcars) as the reason.

CSX said coal loadings for the quarter were down 14 percent, but automobile and auto-related traffic rose 18 percent.

The CSX first-quarter 2012 operating ratio of 71.1 percent was a record for the first 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 operates some 21,000 route miles in 23 states and the District of Columbia.

Kansas City Southern  reported a 17 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing “robust” intermodal and automotive traffic along with “growing cross-border traffic with Mexico.”

KCS’s first quarter 2012 operating ratio of 71.2 was 2.6 percentage points improved from its operating ratio for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

Norfolk Southern reported a 26 percent improvement in profit for the first quarter 2012 versus first quarter 2011, citing pricing strength and an increase in intermodal traffic that offset a 6 percent reduction in coal traffic.

NS’s first quarter 2012 operating ratio of 73.3 was improved from the 74.9 percent operating ratio for first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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

 

Union Pacific reported a 35 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing a 15 percent increase in shipments of automobiles and gains in the number of carloads of other industrial products that offset dampening demand for coal transport.

UP’s first quarter 2012 operating ratio of 70.5 was 4.2 percentage points better than for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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