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[CNJRoss]

CSX news release 1/16/18:

 

CSX Corporation Announces Fourth Quarter and Full-Year 2017 Earnings

 

JACKSONVILLE, Fla. – January 16, 2018 – CSX Corporation (NASDAQ: CSX) today announced fourth quarter 2017 net earnings of $4.1 billion, or $4.62 per share, versus $458 million, or $0.49 per share in the same period last year. Fourth quarter 2017 net earnings included a $3.6 billion net tax reform benefit resulting from the Tax Cuts and Jobs Act of 2017 and a $10 million net restructuring charge. Excluding these two items, fourth quarter 2017 adjusted net earnings were $573 million, or $0.64 per share.

 

 

“CSX’s performance continued to strengthen in the fourth quarter, building upon the scheduled railroading model that was instituted by Hunter Harrison” said James M. Foote, president and chief executive officer. “I’m excited about the progress we are making and am confident we have the right team in place to achieve our goal of becoming the best railroad in North America.”

 

Revenue for the fourth quarter decreased $174 million, or six percent, when compared to the previous year, primarily due to the $178 million impact of an extra fiscal week in 2016 that resulted from the company’s 52/53 fiscal reporting calendar in 2016.

 

Expenses for the fourth quarter were down $291 million, or 14 percent, when compared to the fourth quarter in the previous year, which included $116 million in additional costs related to the extra week in 2016. Operating income in the fourth quarter of 2017 was $1.12 billion.

 

CSX had full-year 2017 earnings per share of $5.99, operating income of $3.7 billion and an operating ratio of 67.9 percent. Adjusted for the impacts of the Tax Cuts and Jobs Act of 2017 and the company’s restructuring charge, adjusted earnings per share were $2.30, adjusted operating income was $3.9 billion and adjusted operating ratio was 66.3 percent for full-year 2017.

 

“CSX’s team of dedicated railroaders remains focused on creating value for our customers and our  shareholders through operational excellence and the continued execution of our new operating plan,” said Foote. “We look forward to improving the quality of service for our customers and growing our business.”

 

CSX executives will conduct a conference call with the investment community this afternoon, January 16, at 4:30 p.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 through the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.

 

[CNJRoss]

CP news release:

 

CP reports record fourth-quarter and record full-year results on the strength of its operating model and disciplined approach in the marketplace

 

January 18, 2018 Calgary, AB

 

 

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced its best ever fourth-quarter, with revenues up 5 percent to $1.71 billion and an operating ratio of 56.1 percent.

 

Fourth-quarter diluted earnings per share ("EPS") increased 159 percent to $6.77 from $2.61, which includes an income tax recovery of $527 million, primarily as a result of U.S. tax reform net of Canadian provincial tax rate increases. Adjusted diluted EPS rose 6 percent to a new quarterly record of $3.22 from $3.04.

 

  FOURTH-QUARTER 2017 RESULTS

• Revenues up 5 percent to $1.71 billion from $1.64 billion
• Operating ratio improved by 10 basis points to 56.1 percent
• Adjusted diluted EPS rose 6 percent to $3.22 from $3.04

"The fourth quarter was a record by almost every measure and should be celebrated by the men and women in the CP family who work hard every day to deliver for our customers and shareholders," said Keith Creel, CP President and CEO. "2017 was a positive year where we continued to build the foundation for sustainable long-term growth by enhancing our service offering, strengthening our team of professional railroaders, and furthering strategic partnerships with customers."

A disciplined growth strategy combined with the fundamentals of precision railroading also produced full-year diluted EPS of $16.44, up 55 percent from $10.63 and full-year adjusted diluted EPS of $11.39, an increase of 11 percent from $10.29. The full-year reported operating ratio was 57.4 percent and adjusted operating ratio was a record 58.2 percent.

 

  FULL-YEAR 2017 RESULTS

• Revenues increased 5 percent to $6.55 billion from $6.23 billion
• Adjusted operating ratio improved by 40 basis-points to a record 58.2 percent from 58.6 percent
• Adjusted diluted EPS rose 11 percent to $11.39 from $10.29  

CP's personal injury rate improved 1 percent and its FRA accident frequency improved 12 percent, making 2017 the 12th consecutive year CP has led the industry with the lowest FRA-reportable train accident frequency. 

"Over the course of 2017 we built momentum thanks to our strategic approach to growth combined with our continued focus on operational excellence," Creel said. "That momentum has us well positioned to start 2018 and we look forward to delivering another year of record results in a safe and disciplined manner." 

 

  2018 FULL-YEAR GUIDANCE

 

"With a 2018 plan that balances strategic growth with continued productivity improvement, CP expects revenue growth in the mid-single digits and adjusted diluted EPS growth to be in the low double-digits," said Creel. "I have never been more excited about the potential for CP as we write the next chapter in our compelling story, one focused on sustainable, profitable growth." 

CP's expectations for adjusted diluted EPS growth in 2018 are based on adjusted diluted EPS of $11.39 in 2017. CP assumes the Canadian-to-U.S. dollar exchange rate will be in the range of 1.25 to 1.30 and expects an effective tax rate of 24.5 to 25 percent. As CP continues to invest in service, productivity and safety, the company plans to invest between $1.35 billion to $1.5 billion in capital programs in 2018.

CP will discuss its results with the financial community in a conference call beginning at 4:30 p.m. eastern time (2:30 p.m. mountain time) on January 18th, 2018.

  Conference Call Access

• Toronto participants dial in number: 1-647-427-7450
• Operator assisted toll free dial in number: 1-888-231-8191
• Callers should dial in 10 minutes prior to the call.

  Webcast

 

We encourage you to access the webcast and presentation material at investor.cpr.ca

A replay of the fourth-quarter conference call will be available by phone through to February 18, 2018 at 416-849-0833 or toll free 1-855-859-2056, password 5695276.

Access to the webcast and audio file of the presentation will be made available at investor.cpr.ca

 

  Non-GAAP Measures

 

For information regarding non-GAAP measures, including reconciliations to the nearest GAAP measures, see the attached supplementary schedule Non-GAAP Measures. In this news release, CP has provided a forward looking non-GAAP measure. It is not practicable to provide a reconciliation to a forward-looking reported diluted EPS, the most comparable GAAP measure, due to unknown variables and uncertainty related to future results.

 

[CNJRoss]

KCS news release 1/19/18:

 

Kansas City Southern Reports Record Fourth Quarter and Full-Year 2017 Results

 

Fourth Quarter 2017 Results

 

• Record fourth quarter revenues of $660 million, an increase of 10% from prior year on 5% volume growth
• Record fourth quarter operating income of $238 million, 13% higher than a year ago
• Operating ratio of 64.0%, compared with 64.8% in fourth quarter 2016
• Diluted earnings per share of $5.33, an increase of 340% over fourth quarter 2016. Diluted earnings per share includes benefits from changes in the U.S. tax law
• All-time record adjusted diluted earnings per share of $1.38, an increase of 23% over fourth quarter 2016 

 

Kansas City, Mo., January 19, 2018. Kansas City Southern (KCS) (NYSE:KSU) reported record fourth quarter 2017 revenues of $660 million, an increase of 10% from fourth quarter 2016. Overall, carload volumes increased 5% compared to the prior year, serving as a fourth quarter record.

 

Operating expenses in the fourth quarter were $423 million, 9% higher than 2016. Operating income was a fourth quarter record at $238 million, an increase of 13% from the fourth quarter 2016. KCS reported a fourth quarter operating ratio of 64.0%, a 0.8 point improvement over fourth quarter 2016. 

 

Reported net income in the fourth quarter of 2017 was $552 million, or $5.33 per diluted share, compared with $130 million, or $1.21 per diluted share, in the fourth quarter of 2016. Excluding the impacts of foreign exchange fluctuations and changes in the U.S. tax law, adjusted diluted earnings per share for fourth quarter 2017 was an all-time record of $1.38, compared to $1.12 in fourth quarter 2016. 

 

For the full year of 2017, KCS achieved record revenues, operating income, operating ratio and adjusted diluted earnings per share. Revenue was $2.6 billion, up 11% from 2016, on 5% carload growth. Full year 2017 operating income was $922 million, an increase of 13% from the prior year. The Company’s 2017 operating ratio was 64.3%, a 0.6 point improvement from the prior year reported operating ratio.

 

Reported net income in 2017 was $964 million or $9.16 per diluted share, compared with $480 million, or $4.43 per diluted share, in 2016. Excluding the impacts of foreign exchange fluctuations and changes in the U.S. tax law, adjusted diluted earnings per share for 2017 was $5.25 compared to $4.48 in 2016. 

 

“Kansas City Southern achieved record financial results with revenue growth in all six commodity groups in 2017” stated President and Chief Executive Officer Patrick J. Ottensmeyer. “Despite the impact of Hurricane Harvey in the third quarter, strong topline performance, led by our Energy, Automotive and Chemical & Petroleum business units contributed to record full-year adjusted diluted earnings per share of $5.25, an increase of 17% over 2016.

 

“Looking ahead to 2018, we believe KCS is positioned to maintain its growth momentum driven by unique franchise opportunities, a strengthening economy and a focus on cost control. We expect to continue leveraging the investments made in our network to grow our business, ensure good customer service and maximize shareholder returns.”

 

GAAP Reconciliations

Continue here for GAAP Reconciliations and Consolidated Statement of Income)

[CNJRoss]

CN news release:

 

CN reports Q4-2017 and full-year financial results

 

Quarter caps strong 2017 performance with top line growth of over C$1 billion; record investments planned in 2018 to deliver future growth

 

 

MONTREAL, Jan. 23, 2018 /CNW/ - CN (TSX: CNR) (NYSE: CNI) today reported its financial and operating results for the fourth quarter and year ended Dec. 31, 2017.

 

Financial results highlights
Fourth-quarter 2017 compared to fourth-quarter 2016

• Net income increased by 156 per cent to C$2,611 million, and diluted earnings per share (EPS) increased by 164 per cent to C$3.48. Included in net income was a deferred income tax recovery of C$1,764 million (C$2.35 per diluted share) resulting from the enactment of a lower U.S. federal corporate income tax rate.
• Adjusted net income decreased by six per cent to C$897 million, and adjusted diluted EPS decreased by two per cent to C$1.20. ⁽¹⁾
• Operating income decreased by seven per cent to C$1,301 million.
• Revenues increased by two per cent to C$3,285 million.
• Revenue ton-miles (RTMs) increased by one per cent and carloadings increased by seven per cent.
• Operating expenses increased by nine per cent to C$1,984 million.
• Operating ratio of 60.4 per cent, an increase of 3.8 points.

 

Full-year 2017 compared to full-year 2016

• Net income increased by 51 per cent to C$5,484 million, and diluted EPS increased by 55 per cent to C$7.24. Included in net income was a deferred income tax recovery of C$1,764 million (C$2.33 per diluted share) resulting from the enactment of a lower U.S. federal corporate income tax rate.
• Adjusted net income increased by six per cent to C$3,778 million, and adjusted diluted EPS increased by nine per cent to C$4.99. ⁽¹⁾
• Operating income increased by five per cent to C$5,558 million.
• Revenues increased by eight per cent to C$13,041 million.
• RTMs increased by 11 per cent and carloadings increased by 10 per cent.
• Operating expenses increased by 11 per cent to C$7,483 million.
• Operating ratio of 57.4 per cent, an increase of 1.5 points.
• Free cash flow ⁽¹⁾ was C$2,778 million, compared with C$2,520 million for 2016.

 

"Our growth continues to outpace the strengthening economy, and I am pleased with the results our dedicated team generated in 2017," said Luc Jobin, CN president and chief executive officer. "Throughout the year we faced rapidly changing market demands and in the fourth quarter dealt with challenging operating conditions, including harsh early winter weather across the network, impacting our performance.

 

"We remain focused on operational efficiency and providing quality service to our customers," Jobin continued. "In 2018 we are adding new train crews and increasing our capital program to a record C$3.2 billion as we invest in locomotives and build additional capacity for resiliency." 

 

2018 outlook, capital program and increased dividend ⁽²⁾

"As the economic backdrop remains favourable in North America, we expect to see continued volume growth in 2018," said Jobin.

CN aims to deliver adjusted diluted EPS in the range of C$5.25 to C$5.40 this year compared to adjusted diluted EPS of C$4.99 in 2017. ⁽¹⁾

 

CN will continue to invest in the safety and efficiency of its network with a capital program in 2018 of C$3.2 billion. The program is highlighted by approximately $700 million for investments to increase capacity, including the acquisition of 60 new locomotives, track infrastructure expansion, and improvements at intermodal terminals. The capital program also includes approximately C$1.6 billion for track infrastructure maintenance supporting safety and efficiency, and approximately C$400 million for continued installation of Positive Train Control in the United States. 

 

The Company's Board of Directors today approved a 10 per cent increase to CN's 2018 quarterly cash dividend, effective for the first quarter of 2018. 

 

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. The fluctuation of the Canadian dollar relative to the U.S. dollar affects the conversion of the Company's U.S.-dollar-denominated revenues and expenses. On a constant currency basis, ⁽¹⁾ CN's net income for the three months and year ended Dec. 31, 2017 would have been higher by C$26 million (C$0.03 per diluted share) and C$42 million (C$0.06 per diluted share), respectively. 

 

Fourth-quarter 2017 revenues, traffic volumes and expenses
Revenues for the quarter increased by two per cent to C$3,285 million, when compared to the same period in 2016. Revenues increased for metals and minerals (20 per cent), intermodal (13 per cent), coal (seven per cent) and automotive (one per cent). Revenues declined for grain and fertilizers (10 per cent), petroleum and chemicals (five per cent), forest products (two per cent) and other revenues (one per cent).

 

The increase in revenues was mainly attributable to higher international container traffic via the ports of Prince Rupert and Vancouver, and increased volumes of frac sand; freight rate increases; and higher applicable fuel surcharge rates. These factors were partly offset by the negative translation impact of a stronger Canadian dollar; lower export volumes of U.S. soybeans and reduced shipments of crude oil.

 

Carloadings for the quarter increased by seven per cent to 1,461 thousand.

 

RTMs, measuring the relative weight and distance of rail freight transported by CN, increased by one per cent. Rail freight revenue per RTM also increased by one per cent.

 

Operating expenses for the quarter increased by nine per cent to C$1,984 million, mainly due to higher costs from increased volumes; challenging operating conditions, including harsh early winter weather; and higher fuel prices; partly offset by the positive translation impact of a stronger Canadian dollar.

 

Full-year 2017 revenues, traffic volumes and expenses
Revenues for 2017 increased by eight per cent to C$13,041 million, when compared to 2016. Revenues increased for metals and minerals (25 per cent), coal (23 per cent), intermodal (12 per cent), automotive (nine per cent), grain and fertilizers (six per cent), other revenues (five per cent), and petroleum and chemicals (two per cent). Revenues declined for forest products (one per cent).

 

The increase in revenues was mainly attributable to higher volumes of traffic in overseas intermodal, frac sand, coal and petroleum coke exports, and Canadian grain; freight rate increases; and higher applicable fuel surcharge rates; partly offset by the negative translation impact of a stronger Canadian dollar.

 

Carloadings increased by 10 per cent to 5,737 thousand.

 

RTMs increased by 11 per cent. Rail freight revenue per RTM decreased by two per cent, mainly driven by an increase in the average length of haul and the negative translation impact of a stronger Canadian dollar; partly offset by freight rate increases and higher applicable fuel surcharge.

 

Operating expenses increased by 11 per cent to C$7,483 million, mainly due to higher costs from increased volumes and higher fuel prices, partly offset by the positive translation impact of a stronger Canadian dollar.

 

(1) Non-GAAP Measures
CN reports its financial results in accordance with United States generally accepted accounting principles (GAAP). CN also uses non-GAAP measures in this news release that do not have any standardized meaning prescribed by GAAP, including adjusted performance measures, constant currency, and free cash flow. These non-GAAP measures may not be comparable to similar measures presented by other companies. For further details of these non-GAAP measures, including a reconciliation to the most directly comparable GAAP financial measures, refer to the attached supplementary schedule, Non-GAAP Measures.

 

CN's full-year adjusted EPS outlook ⁽²⁾ excludes the expected impact of certain income and expense items. However, management cannot individually quantify on a forward-looking basis the impact of these items on its EPS because these items, which could be significant, are difficult to predict and may be highly variable. As a result, CN does not provide a corresponding GAAP measure for, or reconciliation to, its adjusted EPS outlook.

 

 

Continue here for additional details and statements.

[CNJRoss]

CN news release:

 

CN announces 10 per cent dividend increase

 

MONTREAL, Jan. 23, 2018 /CNW/ - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a 10 per cent increase in the 2018 dividend on the Company's common shares outstanding.

 

A quarterly dividend of forty-five and a half cents (C$0.455) per common share will be paid on March 29, 2018, to shareholders of record at the close of business on March 8, 2018.

 

Ghislain Houle, CN executive vice-president and chief financial officer, said: "CN grew faster than the economy and delivered strong financial results in 2017. This performance supports our long-running ability to reward shareholders with consistent dividend growth."

CN has declared annual increases to its dividend every year since privatization more than 20 years ago.

 

[CNJRoss]

NS news release:

Norfolk Southern reports fourth-quarter and full-year 2017 results

 

Achieves record 2017 operating ratio and earnings per share

 

 

NORFOLK, Va., Jan. 24, 2018 – Norfolk Southern Corporation (NYSE: NSC) today reported fourth-quarter and 2017 financial results.

 

Net income for the quarter was $3,968 million and diluted earnings per share were $13.79. For the year, net income was $5,404 million and diluted earnings per share were $18.61. These results include effects of the enactment of the Tax Cuts and Jobs Act of 2017 (“tax reform”), which added $3,482 million to net income in both periods and increased diluted earnings per share by $12.10 for the quarter and $12.00 for the year.

 

Absent the effects of tax reform, fourth-quarter 2017 adjusted net income was $486 million, and adjusted diluted earnings per share of $1.69, compared with $416 million, and $1.42 per diluted share, during the same period of 2016. For the year, adjusted net income was $1,922 million versus $1,668 million in 2016. Adjusted diluted earnings per share were $6.61, an 18 percent increase over last year’s record diluted earnings per share of $5.62.

 

“Norfolk Southern is open for growth, and we are optimistic as we head into 2018 that the current economic environment will provide an opportunity for continuing growth,” said James A. Squires, Norfolk Southern chairman, president and CEO. “The hard work and dedication of our employees in executing our Strategic Plan are clearly evident as we continue to achieve record results and deliver on the commitments we made to our shareholders. We remain steadfast in our commitment to deliver on the goals in our Strategic Plan, of which positioning ourselves for growth is a key element. We are laser-focused on execution of our strategy and are confident that we can achieve our targets by 2020 or sooner.”

 

For 2017, Norfolk Southern invested over $1.7 billion in capital - reinvesting in the maintenance of its rail infrastructure and supporting economic growth. These investments range from sidings that better support network fluidity, to terminal expansions that accommodate volume growth, to roadway infrastructure that supports regional competitiveness. The recently-completed Portageville Bridge is one example; funded through a public-private partnership, it will support economic growth and jobs across New York’s Southern Tier region. Norfolk Southern also realized new business in 2017 from 75 industries it assisted in locating or expanding along its lines – representing a customer investment of over one billion dollars.

 

Looking forward in 2018 with respect to capital deployment, Norfolk Southern plans to invest $1.8 billion to maintain the safety of its rail network, enhance service, improve operational efficiency, and support growth. In addition, Norfolk Southern’s board of directors approved an 18 percent increase in its quarterly dividend on the company’s common stock, from $0.61 to $0.72 per share. The dividend is payable March 10, to shareholders of record on Feb. 2. Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 142 consecutive quarters.

 

Fourth-quarter summary

• Railway operating revenues of $2.7 billion increased 7 percent compared with fourth-quarter 2016, as overall volumes were up 5 percent reflecting growth in all three major commodity categories of intermodal, coal and merchandise.  

• Railway operating expenses decreased $74 million, or 4 percent, to $1.7 billion compared with the same period last year. The effects of tax reform decreased railway operating expenses $151 million, more than offsetting increases resulting from increased incentive compensation, higher fuel prices and the 5% growth in volume, which were offset in part by efficiency gains and higher property sales. 

• Income from railway operations was $1,014 million. Excluding the $151 million benefit from tax reform, adjusted income from railway operations was $863 million, an increase of 13 percent year-over-year, and the adjusted railway operating ratio, or operating expenses as a percentage of revenues, was 67.7 percent, a 170 basis point improvement over prior year. 

 

2017 summary

• Railway operating revenues of $10.6 billion increased 7 percent compared with 2016, as overall volumes were up 5 percent reflecting growth in the major commodity categories of coal and intermodal.  

• Railway operating expenses of $7.0 billion increased $151 million, or 2 percent, compared with last year. Expenses related to higher diesel fuel prices, increased incentive compensation, higher inflationary costs and volume growth were offset in part by efficiency savings and the $151 million benefit from tax reform.

• Income from railway operations was $3,586 million. Excluding the tax reform benefit, adjusted income from railway operations was $3,435 million, an increase of 12 percent over the prior year, and the adjusted railway operating ratio was 67.4 percent, a 150 basis point improvement over the prior year’s record.

[CNJRoss]

NS news release 1/23/17:
 

Norfolk Southern Board increases quarterly dividend 18 percent

 

NORFOLK, Va., Jan. 23, 2018 – Norfolk Southern Corporation announced that its board of directors today approved an 18 percent increase in its quarterly dividend on the company’s common stock, from 61 to 72 cents per share.

 

“This dividend increase demonstrates the board’s confidence in Norfolk Southern’s ability to invest in our business and in technology to grow and provide service to our customers, while returning capital to our shareholders consistent with our Strategic Plan,” said James A. Squires, Norfolk Southern chairman, president, and CEO.

 

The dividend is payable March 10, to shareholders of record on Feb 2.

 

Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 142 consecutive quarters.

 

[CNJRoss]

UPRR News Release:

 

Union Pacific Reports Fourth Quarter and Full Year 2017 Results

 

Omaha, Neb., January 25, 2018

 

 

Union Pacific Corporation (NYSE: UNP) today reported 2017 fourth quarter net income of $7.3 billion, or $9.25 per diluted share compared to $1.39 per diluted share in the fourth quarter 2016. Fourth quarter 2017 results include previously-disclosed adjustments reflecting the impact of corporate tax reform. Excluding those items, 2017 fourth quarter adjusted net income was $1.2 billion, or $1.53 per diluted share, 5 and 10 percent increases, respectively, when compared to 2016.

 

Financial Performance*

(Please see online release for quarterly financial performance.)

 

* Please reference page 10 of the supplemental financial information for the full non-GAAP disclosure.

 

"I am pleased with the results the men and women of Union Pacific achieved by focusing on our six-track value strategy. While we have room for improvement in many areas, that doesn’t include the dedication and hard work of our employees as they Build America," said Lance Fritz, Union Pacific chairman, president and chief executive officer.

Fourth Quarter Summary

 

Operating revenue of $5.5 billion was up 5 percent in the fourth quarter 2017 compared to the fourth quarter 2016. Fourth quarter business volumes, as measured by total revenue carloads, increased 1 percent compared to 2016. Volume increases in industrial products and chemicals more than offset declines in agricultural products, automotive and coal. Intermodal volume was flat compared to 2016. In addition:

• Quarterly freight revenue increased 5 percent compared to the fourth quarter 2016, as increased fuel surcharge revenue, core pricing gains, positive volume and positive mix of traffic all contributed to the increase.
• Union Pacific’s adjusted operating ratio of 62.6 percent increased 0.6 points compared to the fourth quarter 2016.
• The $2.03 per gallon average quarterly diesel fuel price in the fourth quarter 2017 was 23 percent higher than the fourth quarter 2016.
• Quarterly train speed, as reported to the Association of American Railroads, was 25.1 mph, 5 percent slower than the fourth quarter 2016.
• Union Pacific repurchased 9.2 million shares in the fourth quarter 2017 at an aggregate cost of $1.1 billion.

Summary of Fourth Quarter Freight Revenues

• Industrial Products up 28 percent
• Chemicals up 7 percent
• Intermodal up 4 percent
• Automotive down 1 percent
• Agricultural Products down 4 percent
• Coal down 5 percent

2017 Full Year Summary

 

For the full year 2017, Union Pacific reported net income of $10.7 billion or $13.36 per diluted share, compared to $4.2 billion, or $5.07 per diluted share in 2016. Excluding the previously-disclosed adjustments reflecting the impact of corporate tax reform, adjusted net income was $4.6 billion, or $5.79 per diluted share, 10 and 14 percent increases, respectively, when compared to 2016.

 

Financial Performance*

(Please see online release for full-year financial performance.)

 

* Please reference page 10 of the supplemental financial information for the full non-GAAP disclosure.

 

Operating revenue totaled $21.2 billion as compared to $19.9 billion in 2016. Adjusted operating income totaled $7.8 billion, an 8 percent increase compared to 2016. In addition:

• Freight revenue totaled $19.8 billion, a 7 percent increase when compared to 2016. Carloadings were up 2 percent versus 2016, with increases in industrial products and coal business groups.
• Average diesel fuel prices increased 22 percent to $1.81 per gallon in 2017 from $1.48 per gallon in 2016.
• Union Pacific’s adjusted operating ratio improved to 63.0 percent, 0.5 points lower than 2016.
• Train speed, as reported to the Association of American Railroads, was 25.4 mph, 5 percent lower compared to the full year 2016.
• Union Pacific’s reportable personal injury rate of 0.79 incidents per 200,000 employee hours increased 5 percent compared to the full-year record achieved in 2016.
• Union Pacific’s capital program in 2017 totaled $3.1 billion.
• Union Pacific repurchased 36.4 million shares in 2017 at an aggregate cost of $4.0 billion.

2018 Outlook

"We are optimistic the economy will favor a number of our market segments leading to another year of positive volume

growth. Increased unit volume, combined with inflation plus core pricing and G55-0 productivity initiatives, should result in another year of revenue growth and improved margins," said Fritz. "We will continue to execute our value-track strategy to benefit our employees, partner with the communities we serve, provide our customers an excellent experience, and generate strong returns for our shareholders."

 

Fourth Quarter 2017 Earnings Conference Call

Union Pacific will host its fourth quarter 2017 earnings release presentation live over the Internet and via teleconference on Thursday, January 25, 2018, at 8:45 a.m. Eastern Time. The presentation will be webcast live over the internet on Union Pacific’s website at www.up.com/investor. Alternatively, the webcast can be accessed directly through the following link. Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).

 

• Supplemental financial information is attached.

 

[CNJRoss]

KCS news release:

 

Kansas City Southern Declares Dividends on 4% Non-Cumulative Preferred Stock and Common Stock; Establishes Annual Meeting Date

 

January 24, 2018

 

Kansas City, Mo., January 24, 2018.  Kansas City Southern’s (KCS) (NYSE:KSU) Board of Directors on January 23, 2018 declared a regular dividend of $0.25 per share on the outstanding KCS 4% non-cumulative preferred stock.  The dividend is payable on April 3, 2018 to preferred stockholders of record at the close of business on March 12, 2018.

 

The Board of Directors also declared a regular dividend of $0.36 per share on the outstanding KCS common stock.  This dividend is payable on April 4, 2018, to common stockholders of record at the close of business on March 12, 2018.

 

The Board of Directors also set the Annual Meeting of Stockholders to be held in Kansas City, Missouri on Thursday, May 17, 2018.  Stockholders of record of KCS’s common stock and KCS’s 4% non-cumulative preferred stock as of March 19, 2018, will be entitled to notice of the meeting and to vote at such meeting.

 

 

[CNJRoss]

UP news release:

 

Union Pacific Corporation Announces a 10 Percent Dividend Increase for First Quarter 2018

 

Omaha, Neb., February 8, 2018

 

 

Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors today voted to increase the quarterly dividend on the Company’s common shares by 10 percent to 73 cents per share. The increased dividend is payable March 30, 2018, to shareholders of record as of February 28, 2018.

 

"This is the second consecutive quarterly dividend increase for Union Pacific shareholders," said Rob Knight, Union Pacific’s Chief Financial Officer, "and is part of our ongoing evaluation of how best to use the benefits of tax reform legislation."

 

Union Pacific has paid dividends on its common stock for 119 consecutive years.