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[CNJRoss]

CN news releases:

CN announces new share repurchase program and declares fourth-quarter 2014 cash dividend

MONTREAL, Oct. 21, 2014 — CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a new share repurchase program. CN believes that the repurchase of its shares represents an appropriate and beneficial use of the Company’s funds.

Luc Jobin, CN executive vice-president and chief financial officer, said: “Our record speaks for itself. We continue to invest significantly in the business while maintaining a focus on consistently enhancing shareholder returns by increasing dividends and repurchasing shares. Since its privatization, CN has increased its dividends per share by 16 per cent on average every year for 18 consecutive years and has created significant value for shareholders through regular share repurchases since its first buyback program in 2000.”

Today, CN’s Board of Directors authorized a new normal-course-issuer bid to purchase, for cancellation, up to 28 million common shares, representing 3.9 per cent of the 709,302,712 common shares issued and outstanding of the Company not held by insiders on Oct. 15, 2014. On that date, 814,717,092 CN common shares were issued and outstanding.

The new repurchase program – starting on Oct. 24, 2014, and ending no later than Oct. 23, 2015 – will be conducted through a combination of discretionary transactions and automatic repurchase plan through the facilities of the Toronto and New York stock exchanges, or alternative trading systems, if eligible, and will conform to their regulations. Toronto Stock Exchange (TSX) rules will permit CN to purchase daily, through TSX facilities, a maximum of 256,297 common shares under the Company’s new repurchase program. Purchases under the normal-course-issuer bid will be made by means of open market transactions or such other means as the TSX or a securities regulatory authority may permit, including private agreements under an issuer bid exemption order issued by securities regulatory authorities in Canada.

The price to be paid by CN for any common shares will be the market price at the time of acquisition, plus brokerage fees, and purchases made under an issuer bid exemption order will be at a discount to the prevailing market price as per the terms of the order.

CN repurchased 22.3 million common shares under its share repurchase program announced in October 2013, at a weighted-average price of C$62.87 per share, excluding brokerage fees, returning C$1.4 billion to shareholders.

CN also announced today that its Board of Directors has approved a fourth-quarter 2014 dividend on the Company’s common shares outstanding. A quarterly dividend of twenty-five cents (C$0.25) per common share will be paid on Dec. 31, 2014, to shareholders of record at the close of business on Dec. 10, 2014.
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CN announces plan to buy back shares through private agreements

MONTREAL, Oct. 27, 2014 — CN (TSX: CNR) (NYSE: CNI) announced today that it intends to purchase for cancellation up to 5.175 million of its common shares pursuant to private agreements between CN and arm's-length third-party seller. The purchases will form part of CN's repurchase program for up to 28 million shares announced on Oct. 21, 2014.

Such purchases will be made pursuant and subject to the terms of an issuer bid exemption order issued by the Ontario Securities Commission (Order) and will take place before October 23, 2015. In accordance with the Order, CN’s purchases under such private agreements will not exceed, in the aggregate, one-third of the maximum number of shares that it may purchase under its recently-announced share repurchase program, or 9,333,333 common shares. The price that CN will pay for any common shares purchased by it under such agreements will be negotiated by CN and the third-party seller and will be at a discount to the prevailing market price of CN's common shares on the Toronto Stock Exchange at the time of the purchase. Information regarding each purchase, including the number of common shares purchased and aggregate purchase price, will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com following the completion of any such purchase.

[CNJRoss]

UP news release, 10/23:

Union Pacific Reports All-Time Quarterly Records
Third Quarter Diluted Earnings per Share up 23 Percent

Omaha, Neb., October 23, 2014

Union Pacific Corporation (NYSE: UNP) today reported 2014 third quarter net income of $1.4 billion, or $1.53 per diluted share, compared to $1.15 billion, or $1.24 per diluted share, in the third quarter 2013.


All-Time Quarterly Records
Diluted earnings per share of $1.53 improved 23 percent.
Operating revenues totaled $6.2 billion, up 11 percent.
Operating income totaled $2.3 billion, up 19 percent.
Operating ratio of 62.3 percent improved 2.5 points.

"Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong volume growth," said Jack Koraleski, Union Pacific chief executive officer. "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."

Third Quarter Summary

Operating revenue increased 11 percent in the third quarter 2014 to $6.2 billion, versus $5.6 billion in the third quarter 2013. Third quarter business volumes, as measured by total revenue carloads, increased 7 percent compared to 2013. Volume increased in agricultural products, industrial products, intermodal, automotive and chemicals. Coal volumes were flat versus 2013. In addition:
Quarterly freight revenue increased 11 percent compared to the third quarter 2013, driven by volume growth and core pricing gains.

Union Pacific's operating ratio of 62.3 percent was an all-time quarterly record, 2.5 points better than the third quarter 2013 and 1.2 points better than the previous all-time quarterly record set in the second quarter 2014.
The average quarterly diesel fuel price of $3.01 per gallon in the third quarter 2014 was down 5 percent compared to the third quarter 2013.

Quarterly train speed, as reported to the Association of American Railroads, was 23.8 mph, 10 percent slower than the third quarter 2013.

The Company repurchased more than 8.3 million shares in the third quarter 2014 at an average share price of $102.54 and an aggregate cost of $856 million.

Summary of Third Quarter Freight Revenues
Industrial Products up 19 percent
Agricultural Products up 19 percent
Intermodal up 15 percent
Chemicals up 6 percent
Automotive up 3 percent
Coal up 2 percent

2014 Outlook

"We are optimistic about the remainder of the year," Koraleski said. "Assuming the economy and weather cooperate, we are well positioned to finish up the year with record results. We continue to see tremendous opportunity across our diverse franchise and remain focused on improving our network velocity and fluidity so that we can leverage these opportunities by safely providing our customers with excellent service and our shareholders with strong returns."

About Union Pacific
Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2004-2013, Union Pacific invested approximately $30 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.

Supplemental financial information is attached.

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[CNJRoss]

The Wall Street Journal online,11/7:

Berkshire Hathaway Profit Declines
Investment Loss Hurts Results; Railroad Arm Benefited From Rebounding Economy

Warren Buffett ’s Berkshire Hathaway Inc. posted a drop in profit tied to an investment loss, though results overall topped analyst expectations as the conglomerate’s railroad arm and other big units continued to ride a rebounding U.S. economy.

Burlington Northern Santa Fe Corp., the railroad that is one of Berkshire’s biggest subsidiaries, eked out a small increase in revenue and profit during the third quarter despite grappling with transportation snarls and a loss of market share.

The railroad, one of North America’s largest, accounted for 11% of the conglomerate’s third-quarter revenue of $51 billion and 22% of its net profit of $4.6 billion.

Continue here.

Note: BNSF is "privately held" by Berkshire Hathaway, Inc. The railroad does not publically provide a detailed earnings report.

[CNJRoss]

MN Public Radio, 11/6:

Despite service woes, BNSF posts strong earnings

Burlington Northern Santa Fe, the dominant freight railroad in Minnesota, has failed to haul a lot of grain, coal and other commodities on time this year, angering many customers.

There are several factors behind the delays and backlogs, including last year's brutal winter, a huge surge in oil shipped by rail from North Dakota, and big crop harvests. But shippers are the ones who are taking big financial hits while BNSF's fortunes have improved.

A University of Minnesota study estimated that rail shipping delays from March to May this year cost Minnesota farmers about $100 million. And the complaints continue.

Continue here w/ audio report (4' 40").

Note: This article also discusses rail freight issues beyond BNSF.

[KevinKorell]

Bloomberg Business Week, 11/10/14:

Buffett Said He Paid a Steep Price. $15 Billion Later, BNSF Is a Cash Machine. 'He Stole It'

Days after Warren Buffett announced his $26.5 billion buyout of railroad BNSF, he insisted that he’d paid a steep price to own a business that would benefit his company, Berkshire Hathaway Inc. (A:US), over the next century.

Article

[KevinKorell]

Progressive Railroading, 11/10/14:

BNSF drove up revenue, drove down operating ratio in 3Q

Over the weekend, BNSF Railway Co. released its third-quarter financial results, which show total revenue increased 4 percent to $5.9 billion and net income rose 5 percent to $1 billion compared with third-quarter 2013 figures.

More

[CNJRoss]

KCS news release:

KCS Declares Dividends on 4% Non-Cumulative Preferred Stock and Common Stock
11/13/2014

Kansas City, Mo., November 13, 2014 – Kansas City Southern’s (KCS) (NYSE:KSU) Board of Directors on November 12, 2014 declared a regular dividend of $0.25 per share on the outstanding KCS 4% non-cumulative preferred stock. The dividend is payable on January 20, 2015 to preferred stockholders of record at the close of business on December 31, 2014.

The Board of Directors also declared a regular dividend of $0.28 per share on the outstanding KCS common stock. This dividend is payable on January 21, 2015, to common stockholders of record at the close of business on December 31, 2014.

[CNJRoss]

Union Pacific news release, 11/21:

Union Pacific Corporation Declares Fourth Quarter Dividend

Omaha, Neb., November 20, 2014

The Board of Directors of Union Pacific Corporation (NYSE: UNP) has declared a quarterly dividend of 50 cents per share on its common stock, payable January 2, 2015, to stockholders of record December 2, 2014.

Union Pacific has paid dividends on its common stock for 115 consecutive years.