9 replies to this topic

[CNJRoss]

NS news release, 4/19:

Norfolk Southern declares quarterly dividend

 

NORFOLK, Va., April 19, 2016 – Norfolk Southern Corporation (NYSE: NSC) today announced the regular quarterly dividend of 59 cents per share on its common stock, payable on June 10 to stockholders of record on May 6.

 

Since its inception in 1982, Norfolk Southern has paid dividends on its common stock for 135 consecutive quarters.

[CNJRoss]

CN news release:

 

CN declares second-quarter 2016 dividend

MONTREAL, April 25, 2016 /CNW/ - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a second-quarter 2016 dividend on the Company's common shares outstanding. A quarterly dividend of thirty-seven-and-one-half cents (C$0.375) per common share will be paid on June 30, 2016, to shareholders of record at the close of business on June 9, 2016.

[CNJRoss]

CSX Express

 

May 13, 2016

CSX Corporation Declares Quarterly Dividend

JACKSONVILLE, Fla., May 13, 2016 -- On Wednesday, the Board of Directors of CSX Corporation (Nasdaq:CSX) approved an $0.18 per share quarterly dividend on the company's common stock. The dividend is payable on June 15, 2016, to shareholders of record at the close of business on May 31, 2016.

 

[CNJRoss]

 

July 13, 2016

 

 

 

 

CSX Corporation Announces Second Quarter Earnings

Highlights:

• Delivered earnings per share of $0.47 and an operating ratio of 68.9 percent 
• Strong U.S. dollar, low commodity prices and energy market transition continue to challenge financial performance and are expected to impact full-year earnings

JACKSONVILLE, Fla. – July 13, 2016 – CSX Corporation (Nasdaq: CSX) today announced second quarter 2016 net earnings of $445 million, or $0.47 per share, down from $553 million, or $0.56 per share, in the same period of last year. 

“CSX continued to drive strong customer service and network efficiency in a challenging market, which is expected to persist throughout this year,” said Michael J. Ward, chairman and chief executive officer. “In this environment, the company continues to right-size resources while making strategic investments to transform the company and capitalize on market opportunities to drive long-term value creation.”

Revenue for the quarter declined 12 percent, driven primarily by an overall 9 percent volume decline that impacted nearly all markets, including coal declines of more than 30 percent, which more than offset pricing gains from an improving service product. 

Expenses improved 9 percent in the quarter, driven by efficiency gains of $96 million, lower volume-related costs of $86 million as CSX further aligned its cost structure with current and future market dynamics, and $56 million from reduced fuel prices. 

Despite the strong efficiency performance in the quarter, operating income decreased 17 percent to $840 million and the operating ratio increased 210 basis points year-over-year to 68.9 percent.

Looking forward, CSX continues to expect 2016 full-year earnings per share to decline, reflecting the ongoing transition in the energy markets, along with the impact of the strong U.S. dollar and low commodity prices. As the company positions itself to serve the markets of tomorrow, CSX remains focused on maximizing shareholder value and achieving a mid-60s operating ratio longer term.

This release corrects information released via Twitter earlier today. CSX executives will conduct a quarterly earnings conference call with the investment community on July 14, 2016, from 8:30 a.m. to 9:30 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 through the company’s website at http://investors.csx.com and on Form 8-K with the Securities and Exchange Commission.

[CNJRoss]

KCS news release:

 

Kansas City Southern Reports Second Quarter 2016 

 

Second Quarter 2016 Results

 

• Revenue of $569 million, a decrease of 3% from second quarter 2015.
• Carload volumes of 537.3 thousand, unchanged from prior year.
• Operating income of $220 million, an increase of 18% from second quarter 2015.
• Operating ratio of 61.3%, compared with 68.1% in second quarter 2015.
• Diluted earnings per share of $1.11, an increase of 10% compared to second quarter 2015. Adjusted diluted earnings per share of $1.22, an increase of 18% compared to second quarter 2015.

 

Kansas City, Mo., July 19, 2016.  Kansas City Southern (KCS) (NYSE:KSU) reported second quarter 2016 revenues of $569 million, a decrease of 3% from second quarter 2015. Overall, carload volumes were unchanged compared to second quarter 2015. Excluding the estimated impacts of Mexican peso depreciation and lower U.S. fuel prices, revenue increased 2% compared to the second quarter of 2015.

 

Operating expenses in the second quarter were $349 million, 13% lower than 2015. Excluding the estimated impacts of Mexican peso depreciation and lower U.S. fuel prices, operating expenses decreased 7% compared to the second quarter of 2015.  In the second quarter of 2016, the Company recognized a $34 million Mexican fuel excise tax credit, reflecting a benefit for the first half of 2016.

 

Operating income for the second quarter of 2016 was $220 million, an increase of 18% from the second quarter 2015.  KCS reported a second quarter operating ratio of 61.3%, a 6.8 point improvement from second quarter 2015. Reported net income in the second quarter of 2016 totaled $120 million, or $1.11 per diluted share, compared with $112 million, or $1.01 per diluted share, in the second quarter of 2015.  Excluding the impacts of foreign exchange rate fluctuations, adjusted diluted earnings per share for second quarter 2016 was $1.22, compared to $1.03 in second quarter 2015. 

  

“On balance, we were pleased with our second quarter 2016 results, particularly with the positive volume trend experienced during late May and the entire month of June,” stated Kansas City Southern’s President and Chief Executive Patrick J. Ottensmeyer. “KCS’ carloads were up 2% in June and ended unchanged with second quarter a year ago largely due to continued good performance in our Chemical & Petroleum and Agriculture & Minerals business units and a strengthening in our Automotive business late in the quarter.

 

“Our service was affected for the second consecutive quarter by the impact of flooding in the Houston, Texas area, which resulted in a three-week shut-down of a bridge on the route KCS utilizes for its cross-border traffic. While bridge repairs were being made, KCS had to detour considerable traffic onto other carriers’ routes. Again, we thank our railroad partners for their cooperation, as well as commend KCS transportation personnel for their efforts in keeping our service mostly fluid in the face of significant challenges.”

 

More here.

[CNJRoss]

CP news release, 7/20:

CP reports Q2 2016 diluted earnings per share of $2.15; adjusted diluted EPS of $2.05

July 20, 2016. Calgary, AB

​​​ ​​​

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced second-quarter reported diluted earnings per share (EPS) of $2.15, or $2.05 on an adjusted diluted EPS basis, and an operating ratio of 62 percent.

 

Reported diluted EPS declined 9 percent to $2.15 from $2.36 and adjusted diluted EPS decreased 16 percent to $2.05 from $2.45 due in large part to a 12 percent drop in revenues.

 

"Revenue challenges in the second quarter, as noted in our quarterly outlook release last month, included lower-than-anticipated bulk volumes, devastating wildfires in northern Alberta and a strengthening Canadian dollar," said CP's Chief Executive Officer E. Hunter Harrison. "Despite these challenges, our team of dedicated railroaders continues to perform and their hard work and focus on service, safety and controlling costs, positions CP well for the rest of the year."

SECOND-QUARTER RESULTS 

• Revenues fell 12 percent to $1.45 billion from $1.65 billion 
• Operating income decreased 15 percent to $551 million from $646 million 
• Operating ratio increased 110 basis points to 62 percent from 60.9 percent
• Reported net income declined 16 percent to $328 million; adjusted income fell 23 percent to $312 million. 

"Our business model provides the flexibility and capacity to take advantage of changing market conditions – as volumes increase, we are well-equipped and ready to respond accordingly," Harrison said.

The company will discuss its results with the financial community in a conference call beginning at: 11 a.m. eastern time (9 a.m. mountain time) on July 20.

• view the second-quarter earnings release and financial reports​​​

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 in the "Investors" section of CP's website at ​http://www.cpr.ca/en...rnings-releases

A replay of the second-quarter conference call will be available by phone through to August 17, 2016 at 416-849-0833 or toll free 1-855-859-2056, password 38007320.

Access to the webcast and audio file of the presentation will be made available at: http://www.cpr.ca/en...rnings-releases

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.

[CNJRoss]

Union Pacific Reports Second Quarter 2016 Results

Omaha, Neb., July 21, 2016

 

Union Pacific Corporation (NYSE: UNP) today reported 2016 second quarter net income of nearly $1.0 billion, or $1.17 per diluted share compared to about $1.2 billion, or $1.38 per diluted share, in the second quarter 2015.

Second Quarter Results

• Diluted earnings per share of $1.17 declined 15 percent.
• Operating income totaled $1.7 billion, down 15 percent.
• Operating ratio of 65.2 percent, up 1.1 points.

"While the second quarter was again challenging from a volume perspective, we continued focusing on initiatives that are squarely in our control, such as being productive with our resources, providing our customers with excellent service, and improving our safety performance," said Lance Fritz, Union Pacific chairman, president and chief executive officer.

 

Second Quarter Summary

Operating revenue of $4.8 billion was down 12 percent in the second quarter 2016 compared to the second quarter 2015. Second quarter business volumes, as measured by total revenue carloads, declined 11 percent compared to 2015. Volume declines in coal, intermodal, industrial products, chemicals, and automotive more than offset growth in agricultural products. In addition:

• Quarterly freight revenue decreased 13 percent compared to the second quarter 2015, as volume declines and lower fuel surcharge revenue more than offset core pricing gains.
• Union Pacific's 65.2 percent operating ratio was unfavorable by 1.1 points compared to the second quarter 2015.
• The $1.45 per gallon average quarterly diesel fuel price in the second quarter 2016 was 27 percent lower than the second quarter 2015.
• Quarterly train speed, as reported to the Association of American Railroads, was 26.6 mph, 8 percent faster than the second quarter 2015.
• The Company repurchased 7 million shares in the second quarter 2016 at an aggregate cost of $602 million.

Summary of Second Quarter Freight Revenues

• Agricultural Products down 3 percent
• Chemicals down 5 percent
• Automotive down 13 percent
• Industrial Products down 14 percent
• Intermodal down 16 percent
• Coal down 27 percent

2016 Outlook

"A soft global economy, the negative impact of the strong U.S. dollar on exports, and relatively weak demand for consumer goods will continue to pressure volumes through the second half of the year," Fritz said. "However, we see potential bright spots in certain segments of our business if key economic drivers continue to strengthen as they have in recent weeks. Beyond the impact of the current macro environment, we are implementing a strategy that will make us a stronger company for the future. In the months and years ahead we will continue to create competitive advantages for our customers, enhanced safety and satisfaction for our employees, strength in our communities, and solid returns for our shareholders."

Second Quarter 2016 Earnings Conference Call

Union Pacific will host its second quarter 2016 earnings release presentation live over the Internet and via teleconference on Thursday, July 21, 2016 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.

 

View this release online along with any supplemental materials at http://www.up.com/media/releases/160721-2q-earnings.htm

[CNJRoss]

CN news release:

 

CN reports Q2-2016 net income of C$858 million, or C$1.10 per diluted share

 

Adjusted diluted earnings per share (EPS) ⁽¹⁾ decreased by three per cent to C$1.11

Record second-quarter operating ratio of 54.5 per cent

 

 

MONTREAL, July 25, 2016 /CNW/ - CN (TSX: CNR) (NYSE: CNI) today reported its financial and operating results for the second quarter and six-month period ended June 30, 2016.

 

Second-quarter 2016 financial highlights

• Net income was C$858 million, compared with net income of C$886 million for second-quarter 2015. Q2-2016 diluted EPS remained flat at C$1.10. The decrease in net income was mainly due to lower operating income and other income, and higher interest expense; net of related income taxes.
• Adjusted diluted EPS ⁽¹⁾ of C$1.11 declined three per cent from year-earlier adjusted diluted EPS of C$1.15. The adjusted figures exclude the impact of deferred income tax adjustments resulting from higher provincial corporate income tax rates in both years.
• Operating income declined five per cent to C$1,293 million.
• Revenues decreased by nine per cent to C$2,842 million. Carloadings declined 12 per cent and revenue ton-miles declined 11 per cent.
• Operating expenses declined 12 per cent to C$1,549 million.
• Operating ratio of 54.5 per cent was a second-quarter record and an improvement of 1.9-points over the prior-year quarter.
• Free cash flow ⁽¹⁾ for the first six months of 2016 was C$1,169 million, compared with C$1,051 million for the year-earlier period.

 

Luc Jobin, president and chief executive officer, said: "CN continued to face a very challenging volume environment in the second quarter and maintained strong discipline in realigning resources to keep them in line with reduced freight demand. Service remained solid, key operating metrics advanced, and we continued to improve our safety record. An important product of our cost-management and productivity focus was a record second-quarter operating ratio of 54.5 per cent.

 

"We expect the second quarter to be the volume trough for the year. For the balance of 2016, we continue to expect some markets to remain strong, including lumber and panels, automotive, and refined petroleum products, and we anticipate a bumper grain crop in Canada. At the same time, international intermodal volumes are expected to remain challenging while shipments of commodities related to oil and gas development, such as crude oil, frac sand and drilling pipe, are expected to decrease relative to last year.

 

"Given these expectations, we reiterate our April 25, 2016, financial outlook of aiming to deliver 2016 EPS in line with last year's adjusted diluted EPS ⁽¹⁾ of C$4.44." ⁽²⁾

 

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 second quarter of 2016 would have been lower by C$23 million, or C$0.03 per diluted share. 

 

Second-quarter 2016 revenues, traffic volumes and expenses
Revenues for the second quarter of 2016 were C$2,842 million, a decrease of nine per cent, when compared to the same period in 2015. Revenues increased for forest products (four per cent), but were more than offset by revenue declines for coal (36 per cent), metals and minerals (17 per cent), petroleum and chemicals (16 per cent), grain and fertilizers (12 per cent), intermodal (four per cent), and automotive (one per cent).

 

The revenue decline was mainly attributable to decreased shipments of energy-related commodities including crude oil, frac sand, drilling pipe and semi-finished steel products as a result of declining energy markets; reduced shipments of coal due to weaker North American and global demand; lower volumes of Canadian grain to North American and export markets due to lower available supply; and lower applicable fuel surcharge rates. These factors were partly offset by the positive translation impact of the weaker Canadian dollar on U.S.-dollar-denominated revenues; freight rate increases; as well as increased shipments of lumber and panels to U.S. markets, and increased domestic retail intermodal shipments.

 

Carloadings for the quarter declined by 12 per cent to 1,249 thousand.

 

Revenue ton-miles (RTMs), measuring the relative weight and distance of rail freight transported by CN, declined by 11 per cent from the year-earlier quarter. Rail freight revenue per RTM, a measurement of yield defined as revenue earned on the movement of a ton of freight over one mile, increased by one per cent over the year-earlier period, driven by the positive translation impact of the weaker Canadian dollar and freight rate increases, partly offset by a significant increase in the average length of haul and lower applicable fuel surcharge rates.

 

Operating expenses for the second quarter decreased by 12 per cent to C$1,549 million, mainly due to lower costs resulting from decreased volumes of traffic, lower fuel prices, lower pension expense and cost-management initiatives, partly offset by the negative translation impact of a weaker Canadian dollar on U.S.-dollar-denominated expenses.

[CNJRoss]

NS news release, 7/27:

 

Norfolk Southern reports second-quarter 2016 results

 

Second-quarter 2016 results

• Diluted earnings per share were $1.36.
• Operating ratio improved to 68.6 percent, reflecting an 11 percent reduction in operating expenses coupled with a 10 percent decline in operating revenues.

 

NORFOLK, Va., July 27, 2016 – Norfolk Southern Corporation (NYSE: NSC) today reported financial results for second-quarter 2016. Net income was $405 million, compared with $433 million during the same period of 2015. Diluted earnings per share were $1.36, 4 percent lower compared with $1.41 per diluted share earned in the second quarter last year.

 

“Our second-quarter results reflect our unwavering focus on cost-control, steadfast commitment to customer service, and significant improvements in network performance,” said Chairman, President, and CEO James A. Squires. “We are on track to achieve productivity savings of at least $200 million for 2016, and our record first half operating ratio of 69.4 percent gives us confidence we’ll achieve a full-year operating ratio below 70 percent. Through the continued execution of our strategic plan, we remain confident in our ability to drive superior shareholder value through excellent customer service that positions us for future revenue growth, combined with network efficiency and asset utilization.”

 

Second-quarter summary

• Railway operating revenues were $2.5 billion, down 10 percent compared with second-quarter 2015, due to reduced volumes and lower fuel surcharge revenues. Overall volume declined 7 percent to 1.8 million units for the quarter.
• Merchandise revenues were $1.6 billion, 3 percent lower than the same period last year. Volume declined 3 percent, largely due to fewer chemicals shipments resulting from continued low oil prices. The five merchandise commodity groups reported the following year-over-year revenue results:

 

• Chemicals:                  $426 million, down 6 percent
• Agriculture:                  $383 million, up 1 percent
• Metals/Construction:   $334 million, down 3 percent
• Automotive:                 $248 million, down 2 percent
• Paper/Forest:              $186 million, down 5 percent

 

• Intermodal revenues were $538 million, 15 percent lower compared with second-quarter 2015. Volume declined 5 percent primarily due to the restructuring of the company’s Triple Crown Services subsidiary. 
• Coal revenues were $339 million, 25 percent lower compared with second-quarter 2015. High stockpiles, limited coal burn due to mild winter weather, and sustained low natural gas prices combined to decrease volume by 24 percent.

• Railway operating expenses declined 11 percent to $1.7 billion, primarily due to cost reduction initiatives as well as lower fuel costs, compared with the same period of 2015.
• Income from railway operations was $770 million, 5 percent lower compared with second-quarter 2015.
• The composite service metric improved 13 percent in the quarter and 18 percent for the first six months of 2016, compared with the same periods last year. 
• The operating ratio, or operating expenses as a percentage of revenue, was 68.6 percent, a 140 basis point improvement compared with 70.0 percent in the second quarter of last year.

[CNJRoss]

BNSF web site:

 

 

BNSF's Second-Quarter 2016 Financial Performance:

Volumes, Revenues and Expenses

 

Volumes and Revenues

Second quarter and first six months of 2016 operating income were $1.5 billion, and $3.0 billion, respectively, a decrease of $282 million (16 percent) and $671 million (18 percent), respectively, compared to the same periods in 2015. Our lower earnings for the second quarter and first half of 2016 were primarily a result of a continued decline in demand for coal, energy-related commodities and certain other industrial products categories. Additionally, Consumer Products volumes were lower in the second quarter.    

 

Total revenues for the second quarter and first six months of 2016 were both down 15 percent compared with the same periods in 2015. This is a result of a decline in unit volume for the second quarter and first six months of 2016 of 9 percent and 7 percent, respectively, compared with the same periods in 2015, as well as, to the impact of lower fuel prices on our fuel surcharge revenues.   

 

The decline in average revenue per car/unit in 2016 was primarily due to the impact of lower fuel prices on our fuel surcharge revenues and business mix changes partially offset by increased rate per car/unit. The impact of lower fuel prices on our fuel surcharge revenues affected revenue of all product lines.

 

Business unit second quarter and first half of 2016 volume highlights:

• Consumer Products volumes were down 3 percent in the second quarter of 2016 compared with the same periods in 2015, due to lower international intermodal volume from the impact of soft economic activity and inflated retail inventories. The decline was partially offset by increased automotive volumes. However, Consumer Products volumes were up 2 percent for the first six months of 2016 compared with the same period in 2015 due to increased domestic intermodal volumes as well as increased automotive volumes due to the addition of a new automotive customer.             
• Industrial Products volumes decreased 5 percent and 7 percent for the second quarter and the first six months of 2016, respectively, compared with the same periods in 2015, primarily due to lower petroleum products and commodities that support drilling due to the impact of pipeline displacement of U.S. crude traffic along with lower production. In addition, there was lower demand for steel and taconite partially offset by increased movements of non-owned rail equipment and increased plastics.
• Coal volumes decreased 34 percent and 33 percent for the second quarter and the first six months of 2016, respectively, compared with the same periods in 2015, due to lower demand driven by reduced energy consumption and low natural gas prices.
• Agricultural Products volumes were up 6 percent and 3 percent for the second quarter and the first six months of 2016, respectively, compared with the same periods in 2015, due to higher grain exports.

 

Continue here.