11 replies to this topic

[CNJRoss]

CSX news release, 1/13:

 

CSX Corporation Announces Record Fourth-Quarter and Full-Year Results

 

Highlights:

- Record fourth-quarter and full-year results for revenue, operating income, net earnings and earnings per share

- For 2015, the company expects double-digit earnings per share growth and margin expansion, as it progresses toward a mid-60s operating ratio longer term

 

JACKSONVILLE, Fla. - January 13, 2015 - CSX Corporation (NYSE: CSX) today announced record fourth-quarter 2014 net earnings of $491 million, a 15 percent increase from $426 million for the same period last year. The company also generated record fourth-quarter earnings per share of $0.49, up 17 percent from $0.42 per share in 2013. 

 

"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 chief executive officer. "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."

 

Fourth-quarter revenue increased 5 percent to $3.2 billion, with strength across merchandise, intermodal and coal. The timely addition of operating resources enhanced service through the fall peak shipping season and supported volume growth. As a result, operating income increased 11 percent to $901 million, and the operating ratio improved 140 basis points to 71.8 percent.

 

For the full-year, 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. At the same time, the operating ratio remained relatively stable at 71.5 percent. 

 

Looking to 2015, CSX expects continued strong growth across its diverse business mix and is poised for sustainable business expansion. The company continues to expect to generate double-digit growth in earnings per share and margin expansion in 2015, progressing toward a mid-60s operating ratio longer term.

 

CSX executives will conduct a quarterly earnings conference call with the investment community on January 14, 2015, at 8:30 a.m. Eastern time. Investors, media and the public may listen to the conference call by dialing 1-888-EARN-CSX (888-327-6279) and asking for the CSX earnings call. Callers outside the U.S., dial 1-773-756-0199. Participants should dial in 10 minutes prior to the call. In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company's website at http://investors.csx.com. Following the earnings call, an internet replay of the presentation will be archived on the company website.

 

This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available on the company's website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.

 

CSX also uses social media channels to communicate information about the company. Although our social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information we post on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels listed below. This list may be updated from time to time.

CSX on Twitter: http://twitter.com/CSX

CSX on Slideshare: http://www.slideshar...owTomorrowMoves

 

CSX, based in Jacksonville, Florida, is a premier transportation company.  It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products.  For more than 185 years, CSX has played a critical role in the nation's economic expansion and industrial development.  Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides.  It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and small farming towns alike.  More information about CSX Corporation and its subsidiaries is available at www.csx.com.

[KevinKorell]

Progressive Railroading, 1/22/15:

UP broke three financial records in Q4, four in 2014

Driven by strong volumes, solid core pricing and productivity gains, Union Pacific Corp. set three financial records in fourth-quarter 2014.

More

[CNJRoss]

UP news release:

 

Union Pacific Reports Fourth Quarter and Full Year 2014 Results Fourth Quarter 2014 Diluted Earnings per Share up 27 Percent

Omaha, Neb., January 22, 2015

 

Union Pacific Corporation (NYSE: UNP) today reported 2014 fourth quarter net income of $1.4 billion, or $1.61 per diluted share, compared to $1.2 billion, or $1.27 per diluted share, in the fourth quarter 2013.

All-Time Quarterly Records

• Diluted earnings per share of $1.61 improved 27 percent.
• Operating income totaled $2.4 billion, up 20 percent.
• Operating ratio of 61.4 percent improved 3.6 points.

Full Year Records

• Diluted earnings per share of $5.75 improved 22 percent.
• Operating revenues totaled $24.0 billion, up 9 percent.
• Operating income totaled $8.8 billion, up 18 percent.
• Operating ratio of 63.5 percent improved 2.6 points.

"Union Pacific achieved record quarterly financial results, driven by strong volumes, solid core pricing and productivity gains," said Jack Koraleski, Union Pacific chief executive officer. "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."

 

Fourth Quarter Summary

Operating revenue increased in the fourth quarter 2014 to $6.2 billion, a 9 percent increase over fourth quarter 2013. Fourth quarter business volumes, as measured by total revenue carloads, increased 6 percent compared to 2013. Volume increased in all business groups - led by growth in industrial products and coal. In addition:

• Quarterly freight revenue increased 9 percent compared to the fourth quarter 2013, driven by volume growth and core pricing gains.
• The average quarterly diesel fuel price of $2.66 per gallon in the fourth quarter 2014 was down 14 percent compared to the fourth quarter 2013.
• Union Pacific's operating ratio of 61.4 percent was an all-time quarterly record, 3.6 points better than the fourth quarter 2013. The net impact of lower fuel prices contributed about 1.5 points of this improvement.
• Quarterly train speed, as reported to the Association of American Railroads, was 23.8 mph, 8 percent slower than the fourth quarter 2013.
• The Company repurchased more than 7.7 million shares in the fourth quarter 2014 at an average share price of $113.77 and an aggregate cost of $880 million.

Summary of Fourth Quarter Freight Revenues

• Industrial Products up 15 percent
• Intermodal up 11 percent
• Coal up 9 percent
• Agricultural Products up 9 percent
• Chemicals up 8 percent
• Automotive flat

2014 Full Year Summary

For the full year 2014, Union Pacific reported net income of $5.2 billion or $5.75 per diluted share. This compares to $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 $22.0 billion in 2013. Operating income totaled $8.8 billion, an 18 percent increase over 2013. In addition:

• Freight revenue increased to $22.6 billion, a 9 percent increase over 2013. Carloadings were up 7 percent versus 2013, with growth in each business group. Volume growth was led by agricultural products, industrial products, and intermodal.
• Average diesel fuel prices decreased 6 percent to $2.97 per gallon in 2014 from $3.15 per gallon in 2013.
• Union Pacific's operating ratio of 63.5 percent was a full year record, improving 2.6 points from the previous record set in 2013.
• Train speed, as reported to the Association of American Railroads, was 24.0 mph, 8 percent slower compared to the full year 2013.
• Union Pacific's capital program in 2014 totaled $4.1 billion, an increase of approximately $500 million compared to the full year 2013.
• The Company increased its quarterly declared dividend per share by 10 percent to $0.50 cents per share in the third quarter 2014. Total dividends declared for the full year 2014 grew 29 percent compared to the full year 2013.
• The Company repurchased more than 32.0 million shares in 2014 at an average share price of $100.65, and an aggregate cost of more than $3.2 billion.

2015 Outlook

"With 2014 behind us, we're intently focused on the year ahead," Koraleski said. "Overall, the U.S. economy continues to move forward at a moderate pace, but of course, there are always uncertainties. Clearly, one of the biggest uncertainties is the outlook for energy markets, which will bring both challenges and opportunities as we move ahead. 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."

 

• Supplemental financial information is attached.

****

[CNJRoss]

CP news release, 1/22:

 

CP reports record Q4 2014 operating ratio of 59.8 percent and earnings per share of C$2.63

Q4 adjusted earnings per share climb to $2.68

 

Calgary, AB – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced the lowest quarterly operating ratio in the company’s history and record net income for both the fourth quarter and the full year 2014.

 

Revenues in the fourth quarter climbed 10 percent to an all-time high $1.76 billion. Net income rose to a record $451 million, or $2.63 per diluted share. Adjusted earnings in the fourth-quarter jumped to $460 million, or $2.68 per share, from $338 million, or $1.91 per share, in the fourth quarter 2013.

 

“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,” said E. Hunter Harrison, CP’s Chief Executive Officer. “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.”

 

FULL-YEAR 2014 HIGHLIGHTS

· Revenue climbed 8 percent to an all-time high $6.62 billion

· Operating ratio fell to a record 64.7 percent, a 520-basis-point drop on an adjusted basis

· Reported EPS rose 71 percent to a record $8.46

· Adjusted EPS climbed 32 percent to $8.50

 

“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,” Harrison said.

 

2015 FULL-YEAR GUIDANCE

· Operating ratio below 62 percent

· Revenue growth of 7-8 percent

· Adjusted EPS increase of more than 25 percent vs. 2014 adjusted EPS of $8.50

 

KEY ASSUMPTIONS

· No assumption on share buybacks beyond current NCIB program expiring March 16, 2015

· Canadian dollar to U.S. dollar exchange rate of C$1.20

· Tax rate of 27.5 per cent

· Defined benefit pension expense of approximately $45 million vs. 2014 pension income of $43 million

· Capital expenditures of approximately $1.5 billion

· Average On Highway Diesel price of $2.70

· Average WTI price of $46

· 140,000 crude carloads

 

Non-GAAP Measures
For further information regarding non-GAAP measures, including reconciliations to the nearest GAAP
measures, see the attached supplementary schedule Non-GAAP Measures.

 

Complete release, including supplemental information.

[CNJRoss]

KCS news release:

 

Kansas City Southern Reports Record Fourth Quarter and Full-Year 2014
01/23/2015
 

 

Fourth Quarter 2014 Results

• Revenue of $643 million, an increase of 4% over fourth quarter 2013.
• Operating income of $214 million, 9% higher than a year ago.
• Operating ratio of 66.7%, compared with 68.1% in fourth quarter 2013.
• Diluted earnings per share of $1.28. Adjusted diluted earnings per share of $1.27 for fourth quarter 2014.

 

Kansas City, Mo., January 23, 2015.  Kansas City Southern (KCS) (NYSE:KSU) reported record fourth quarter 2014 revenues of $643 million. Overall, carload volumes were 5% higher than in fourth quarter 2013.

 

Compared to 2013, fourth quarter revenue growth was led by a 13% increase in Automotive and a 9% increase in both Chemicals & Petroleum and Energy. Intermodal was also strong, with revenues growing by 8% in the fourth quarter of 2014. Industrial & Consumer revenue grew 1% and Agriculture & Minerals revenue declined by 5% compared to the prior year, primarily due to a decline in grain shipments when compared to the exceptionally strong fourth quarter of 2013. Also, the impact of lower U.S. fuel prices and the depreciating peso reduced revenue growth by approximately 2% compared to the fourth quarter of 2013.
 

Operating income for the fourth quarter of 2014 was $214 million compared with $196 million a year ago, a 9% increase. KCS reported a fourth quarter 2014 operating ratio of 66.7%, a 1.4 point improvement from fourth quarter 2013. Operating expenses in the fourth quarter were $429 million compared with $420 million in the corresponding 2013 period, a 2% increase.

 

Reported net income in the fourth quarter of 2014 totaled $142 million, or $1.28 per diluted share, compared with $114 million, or $1.03 per diluted share, in the fourth quarter of 2013.  Excluding debt retirement costs and the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for fourth quarter 2014 was $1.27 compared to $1.03 in 2013. The adjusted effective income tax rate in the fourth quarter of 2014 was 30.2% compared to 37.0% in the fourth quarter of 2013.
 
For the full year of 2014, revenue was a record $2.6 billion, up 9% over 2013. Carloads for 2014 were 2.3 million, an increase of 5% over the prior year.

 

After adjusting for lease termination costs, full-year operating income was $847 million. Full-year 2014 adjusted operating income increased 15% over prior year’s operating income. The Company’s 2014 adjusted operating ratio was 67.1% compared with the operating ratio of 68.8% in 2013, a 1.7 point improvement.

 

Reported net income in 2014 totaled $504 million, or $4.55 per diluted share, compared with $353 million, or $3.18 per diluted share, in 2013.  Excluding lease termination and debt retirement costs and the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for 2014 was $4.82 compared to $3.98 in 2013. The adjusted effective income tax rate for 2014 was 32.6% compared to 34.7% in 2013.

 

“Kansas City Southern achieved record financial results with growth in all six commodity groups in 2014” stated President and Chief Executive Officer David L. Starling. “Strong volume growth in our Agriculture & Minerals and Automotive commodity groups contributed to a record adjusted operating ratio of 67.1%, a reduction of 1.7 points over the prior year’s operating ratio.

 

“KCS met its stated target of high-single digit year-over-year revenue growth, coming in 9% higher than 2013. The Company reported adjusted diluted earnings per share of $4.82, which marks the fifth consecutive year KCS has recorded a double-digit percentage increase in its adjusted diluted earnings per share.

 

“Looking ahead to 2015, we believe KCS is well-positioned to maintain its growth momentum driven by a strengthening economy and unique franchise opportunities. We expect to see positive developments in a wide-range of commodity groups, including automotive, intermodal, and chemical & petroleum products. And, while there is significant volatility in the energy markets, KCS anticipates volume growth in crude oil traffic originating in Canada and terminating at various Gulf locations. These exciting growth areas provide visibility to continued growth over the next decade.”

[CNJRoss]

NS news release:

 

Norfolk Southern raises quarterly dividend

 

NORFOLK, Va., January 23, 2015 -- Norfolk Southern Corporation (NYSE: NSC) today announced that its Board of Directors voted to increase the regular quarterly dividend on the company’s common stock by 4 percent, or 2 cents per share, from 57 to 59 cents per share. The increased dividend is payable on March 10 to stockholders of record on Feb. 6.

 

Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 130 consecutive quarters.

[CNJRoss]

NS news release:

 

Norfolk Southern reports fourth-quarter and full-year 2014 results

 

NORFOLK, Va., January 26, 2015 – Norfolk Southern Corporation (NYSE: NSC) today reported financial results for fourth-quarter and full-year 2014.

 

Net income for the quarter was $511 million, or $1.64 per diluted share, compared with $513 million, or $1.64 per diluted share, earned in fourth-quarter 2013. For the year, net income increased to a record $2.0 billion, 5 percent higher compared with $1.9 billion for 2013. Diluted earnings per share for 2014 were a record $6.39, up 6 percent compared with $6.04 per diluted share for 2013.

 

FOURTH-QUARTER 2014 RESULTS

 

• Railway operating revenues totaled $2.9 billion.
• Income from railway operations was $891 million.
• Net income totaled $511 million.
• Diluted earnings per share were $1.64.
• The railway operating ratio was 69.0 percent.

 

2014 RESULTS SET RECORDS

 

• Railway operating revenues reached $11.6 billion.
• Income from railway operations was $3.6 billion.
• Net income totaled $2.0 billion.
• Diluted earnings per share were $6.39.
• The railway operating ratio was 69.2 percent.

 

“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,” said CEO Wick Moorman. “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.”

 

FOURTH-QUARTER SUMMARY

 

• Operating revenues were $2.9 billion, about even compared with fourth-quarter 2013, with gains in merchandise and intermodal revenues offsetting weaker coal revenues. Total volume was up 4 percent, or about 66,000 units, due to gains in intermodal and merchandise traffic.

 

• General merchandise revenues were $1.7 billion, 3 percent higher than the same period last year. Volume grew by 5 percent, led by increases in shipments of chemicals and metals and construction. The five commodity groups reported mixed revenue results on a year-over-year basis:

 

• Chemicals: $477 million, up 11 percent
• Agriculture: $387 million, down 2 percent
• Metals/Construction: $366 million, up 5 percent
• Automotive: $253 million, even
• Paper/Forest: $195 million, down 3 percent

 

• Intermodal revenues increased to $649 million, 5 percent higher compared with fourth-quarter 2013. Growth in international and domestic business pushed traffic volume up 6 percent in the quarter compared with the same period of 2013.
• Coal revenues were $543 million, 15 percent lower compared with the fourth quarter of 2013. A weak global export market and fewer shipments of coal to utilities combined to decrease volume by 6 percent.
• Railway operating expenses were $2.0 billion, down 1 percent compared with the same period of 2013.
• Income from railway operations was $891 million, a fourth-quarter record and 1 percent higher compared with fourth-quarter 2013.
• The operating ratio, or operating expenses as a percentage of revenue, improved 1 percent to 69.0 percent, compared with the same quarter in 2013.

 

2014 SUMMARY

 

• Railway operating revenues reached a record $11.6 billion, 3 percent higher compared with 2013, driven by a 5 percent increase in traffic volume.
• General merchandise revenues rose 6 percent to $6.7 billion, and traffic volume increased 5 percent compared with the prior year.
• Intermodal revenues increased to $2.6 billion, up 7 percent compared with 2013. Traffic volume was 8 percent higher for 2014 compared with 2013.
• Coal revenues were $2.4 billion, down 6 percent, due to a 5 percent decline in traffic volume compared with 2013.
• Railway operating expenses were $8 billion, up 1 percent compared with 2013.
• Income from railway operations was a record $3.6 billion, 10 percent higher compared with 2013.
• The operating ratio for the year was a record 69.2 percent, a 3 percent improvement compared with 71.0 percent in 2013.

 

 

[CNJRoss]

CN news release, 1/27 (edited):

 

CN Q4-2014 net income increased to C$844 million, with diluted earnings per share (EPS) rising 36% to C$1.03

Full-year 2014 adjusted diluted EPS rose 23% to C$3.76 ⁽¹⁾

2014 freight volumes were a CN record

 

MONTREAL, Jan. 27, 2015 /CNW/ - CN (TSX: CNR) (NYSE: CNI) today reported its financial and operating results for the fourth quarter and year ended Dec. 31, 2014.

 

Fourth-quarter and full-year 2014 financial highlights

• Fourth-quarter 2014 net income was C$844 million versus net income of C$635 million for the same period of 2013.
• Q4-2014 diluted earnings per share (EPS) increased 36 per cent to C$1.03 from diluted EPS of C$0.76 for the final quarter of 2013.
• Full-year 2014 net income was C$3,167 million, or C$3.85 per diluted share, compared with net income of C$2,612 million, or C$3.09 per diluted share, for 2013.
• Full-year 2014 adjusted diluted EPS increased 23 per cent to C$3.76, with adjusted 2014 net income of C$3,095 million versus adjusted net income of C$2,582 million in 2013. ⁽¹⁾
• Full-year 2014 volumes reached record levels, with carloadings up eight per cent and revenue ton-miles up 10 per cent.
• Q4-2014 operating income increased 30 per cent to C$1,260 million, and full-year 2014 operating income rose 19 per cent to C$4,624 million.
• The fourth-quarter 2014 operating ratio improved by 4.1 points to 60.7 per cent; the full-year 2014 operating ratio improved by 1.5 points to 61.9 per cent.
• 2014 free cash flow totalled C$2,220 million, compared with free cash flow of C$1,623 million for 2013. ⁽¹⁾

Claude Mongeau, president and chief executive officer, 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. We're particularly proud of our solid operating performance that allowed us to move record volumes of Western Canadian grain and equally strong U.S. grain shipments.

 

"Our agenda of Operational and Service Excellence is clearly working. This momentum is helping us to grow CN's business faster than the overall economy and to do so at low incremental cost. This will provide us with a strong foundation for 2015, a year in which we see continued opportunities for growth in energy-related commodities, intermodal traffic, and commodities tied to U.S. housing construction, automotive sales and other consumer spending."

 

Positive 2015 outlook, increased dividend ⁽²⁾
Mongeau said: "CN is optimistic about its future prospects. The Company is aiming to deliver double-digit EPS growth in 2015 over adjusted diluted 2014 EPS of C$3.76. In addition, CN plans to increase its capital spending by roughly C$300 million for a total 2015 investment of approximately C$2.6 billion.

"Given CN's strong balance sheet and its solid outlook for earnings and free cash flow generation, I am pleased to announce that the Company's Board of Directors has approved a 25 per cent increase in CN's 2015 quarterly common-share dividend. CN has increased its dividend per share by 17 per cent per year on average since its privatization in 1995."

 

Full-year 2014 revenues, traffic volumes and expenses
2014 revenues increased 15 per cent to C$12,134 million. Revenues increased for petroleum and chemicals (21 per cent), grain and fertilizers (21 per cent), metals and minerals (20 per cent), intermodal (13 per cent), automotive (12 per cent), forest products (seven per cent), and coal (four per cent).

The rise in total revenues was mainly attributable to higher freight volumes due to a record 2013/2014 Canadian grain crop, strong energy markets, particularly crude oil and frac sand, new intermodal and automotive business; the positive translation impact of the weaker Canadian dollar on U.S.-dollar-denominated revenues; and freight rate increases.

Carloadings for 2014 increased eight per cent over 2013 to 5,625 thousand.

Revenue ton-miles, measuring the relative weight and distance of rail freight transported by CN, increased by 10 per cent in 2014 over 2013. Rail freight revenue per revenue ton-mile, a measurement of yield defined as revenue earned on the movement of a ton of freight over one mile, increased by four per cent in 2014 over the previous year.

 

Operating expenses for 2014 increased by 12 per cent to C$7,510 million, mainly due to the negative translation impact of a weaker Canadian dollar on U.S.-dollar-denominated expenses, increased purchased services and material expense, higher fuel costs, as well as increased labor and fringe benefits expense.

The operating ratio was 61.9 per cent in 2014, an improvement of 1.5 points over the 2013 operating ratio of 63.4 per cent.

 

Foreign currency impact on results
Although CN reports its earnings in Canadian dollars, a large portion of its revenues and expenses is denominated in U.S. dollars. As such, the Company's results are affected by exchange-rate fluctuations. On a constant currency basis that excludes the impact of fluctuations in foreign currency exchange rates, CN's net income for the fourth quarter and year ended Dec. 31, 2014, would have been lower by C$45 million, or C$0.06 per diluted share and C$121 million, or C$0.15 per diluted share, respectively. ⁽¹⁾

 

Forward-Looking Statements
Certain information included in this news release constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements. To the extent that CN has provided non-GAAP financial measures in its outlook, the Company may not be able to provide a reconciliation to the GAAP measures, due to unknown variables and uncertainty related to future results. Key assumptions used in determining forward-looking information are set forth below.

 

2015 key assumptions
CN has made a number of economic and market assumptions in preparing its 2015 outlook. The Company is forecasting that North American industrial production for the year will increase in the range of three to four per cent, that U.S. housing starts will be in the range of 1.2 million units, and that U.S. motor vehicles sales will be approximately 16.7 million units. The 2014/2015 Canadian grain crop represented a significant reduction toward the historical trend line while the U.S. grain crop was above trend. CN assumes that  the 2015/2016 grain crops in both Canada and the United States will be in line with trend yields. CN also assumes its 2015 customer shipments of energy-related commodities, namely crude oil and frac sand, will grow by approximately 75,000 carloads versus 2014. With these assumptions, CN assumes total carload growth for all freight categories will be in the three to four per cent range, along with continued pricing improvement above inflation. CN also assumes that in 2015 the value of the Canadian dollar in U.S. currency will be in the range of $0.80 to $0.85, and that the average price of crude oil (West Texas Intermediate) will fluctuate around US$50 per barrel. In 2015, CN plans to invest approximately C$2.6 billion in its capital programs, of which approximately C$1.3 billion is targeted toward maintaining the safety and integrity of the network, particularly track infrastructure. The capital program also includes funds for projects supporting growth and productivity.

 

Complete news release.

[CNJRoss]

CN news release:

 

CN announces 25 per cent increase in quarterly cash dividend

MONTREAL, Jan. 27, 2015 /CNW/ - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a 25 per cent increase in the Company's quarterly cash dividend. With this increase, CN's dividend on an annualized basis is C$1.25 per common share. The 25-cent increase in the annual dividend payment is the largest such increase in CN's history.

 

Luc Jobin, CN executive vice-president and chief financial officer, said: "In this 20^th year since CN's privatization, we are pleased to continue our commitment to enhance shareholder returns. The substantial dividend increase reflects the Company's continued solid financial performance and confidence in its future prospects. This is also consistent with our new objective of gradually moving toward a 35 per cent dividend payout ratio."

 

A quarterly dividend of thirty-one-and-one-quarter cents (C$0.3125) per common share will be paid on March 31, 2015, to shareholders of record at the close of business on March 10, 2015.

 

Including today's announcement, CN has declared annual increases to its dividend 19 consecutive times, averaging 17 per cent per year, since its initial public offering of shares in 1995.

[CNJRoss]

KCS news release:

 

KCS Increases Common Stock Dividend and Declares Dividends on 4% Non-Cumulative Preferred Stock; Establishes Annual Meeting Date

01/29/2015
 

Kansas City, Mo., January 29, 2015 – Kansas City Southern's (KCS) (NYSE:KSU) Board of Directors on January 29, 2015 declared a regular dividend of $0.33 per share on the outstanding KCS common stock, which is an approximately 18% increase from the previous quarterly dividend of $0.28 per share.  This dividend is payable on April 8, 2015, to common stockholders of record at the close of business on March 9, 2015.

 

The Board of Directors also declared a regular dividend of $0.25 per share on the outstanding KCS 4% non-cumulative preferred stock.  The dividend is payable on April 7, 2015 to preferred stockholders of record at the close of business on March 9, 2015.

 

The Board of Directors also set the Annual Meeting of Stockholders to be held in Kansas City, Missouri on Thursday, May 7, 2015.  Stockholders of record of KCS's common stock and KCS's 4% non-cumulative preferred stock as of March 9, 2015, will be entitled to notice of the meeting and to vote at such meeting. 

 

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama.  Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S.  Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal.  KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.