Burlington Northern Santa Fe
FORT WORTH, Texas -- Railroad group Burlington Northern Santa Fe Corp. said on July 24 that its second-quarter earnings fell 12.6 percent as increases in coal shipments were not enough to offset lower rates it negotiated a few years ago in many of its long-term contracts.
Burlington Northern reported in a statement second-quarter net profits of $195 million, or 50 cents per diluted share, compared with $223 million, or 53 cents per diluted share, a year earlier.
The company said its second quarter operating revenues rose to $2.27 billion from $2.26 billion a year earlier.
Shares of BNSF stock are up 10 percent year-to-date compared with the Standard & Poor's 500 Railroad sector, which is up 25 percent year to date.
Canadian National Railway
WASHINGTON -- Canadian National Railway Co. saw second-quarter earnings run slightly ahead of expectations on a 4.4% growth in revenue, defying the economic slowdown in North America.
At the same time, the company announced it was cutting 690 jobs and taking a C$71 million (US$46.16 million) charge against earnings to write down its investment in fiber optics company 360networks Inc.
The rail carrier reported net income of C$240 million (US$156 million) excluding non-recurring items, or $1.21 a share, on revenue of $1.4-million for the quarter ended June 30, versus $230 million for the same period a year ago. Analysts had expected earnings of $1.20 per share, according to a First Call/Thomson Financial survey.
Taking into account one-time charges for the 360networks investment and the job cuts, CN reported diluted earnings per share of $1.10 for the quarter, down from $1.15 last year.
Canadian Pacific Railway
OTTAWA -- CP Rail said net income for the quarter declined to $95 million Canadian dollars (US$61.7 million) from C$96 million (US$62.4 million) in the second quarter of 2000. Operating income increased to a record US$134 million from US$132.7.
The railroad, soon to be spun off from parent Canadian Pacific Ltd., enjoyed a 3% increase in freight revenue, to US$605 million, despite a soft economy, a revenue cap on the movement of Canadian grain and flooding of the Mississippi River in Minnesota that disrupted shipments.
Cargo volume increased 2% over the second quarter of 2000, while fuel consumption improved 5%, the railway said.
Operating expenses increased 4% to US$472 million, "largely due to a 2% increase in volumes, flooding in the Midwest U.S. and higher energy costs," the company said. Terminal facilities in Minnesota were flooded and "out of action for the better part of four weeks," costing the company $4 million.
WASHINGTON - Led by strong railroad earnings, CSX Corp. said that net income in the second quarter was $108 million or 51 cents per share, more than double earnings in the same period the prior year. The 125% increase "reflects the fact that the railroad is running well and etting better," said CEO John Snow. "We are running a good network."
The company said the increase came despite the fact that total CSX revenues were virtually unchanged at $2.06 billion versus $2.07 billion the year before. "Costs poured out in this quarter," said Snow. The improved results came despite what Snow said was "about the worst time for the industrial economy we serve in about two decades."
Overall carloads were down about 3% to 1,797,000. CSX said continued strength in agricultural and coal shipments offset declines in automobile, intermodal and other general merchandise, though the company was able to achieve rate increase for many of these commodities as well. The carrier said that it was having good success in getting more shippers, especially shippers of food and consumer goods, waste, and metals, to convert from truck to rail.
Kansas City Southern
NEW YORK -- Railroad operator Kansas City Southern Industries Inc. said its second quarter earnings fell 47 percent as the U.S. economic slump caused lower industrial production and less demand for product shipments.
The railroad reported second quarter results of $4.7 million, or 8 cents per share. That compared with income of $8.8 million, or 15 cents per share, a year earlier, it said in a statement. Revenues declined by $1.2 million to $143.2 million and operating expenses rose by $4.3 million to $130.3 million compared to the year-ago period.
The railroad said its freight revenues have continued to suffer, particularly in the paper and forest products and certain chemical markets, but it expects these trends to improve when economic conditions improve.
Norfolk Southern Corp.
NORFOLK, Va. -- Despite the sluggish economy, Norfolk Southern more than held its own in the second quarter, posting an 8 percent earnings increase on flat revenues.
"We are encouraged with our progress in the second quarter in light of the economic downturn that is proving to be longer and deeper than we anticipated," company Chairman David R. Goode said. "While we can't directly control the economic forces that affect us, we are focused on managing Norfolk Southern's cost and on continuing to improve service to keep our business as strong as possible."
The company, which trimmed nearly 4,000 workers since its June 1, 1999, Conrail acquisition, had 2,400 fewer employees this second quarter than last.
Union Pacific Railroad
OMAHA, Neb. -- Union Pacific Corp.'s earnings were flat in the second quarter as high fuel prices and floods in key areas offset increased revenue from energy and agricultural shipments.
The largest U.S. railroad recorded net income of $243 million, or 95 cents a diluted share, compared with $244 million, or 96 cents a share, in the second quarter of last year.
Overall revenue edged 1.1% higher to $3 billion from $2.97 billion. Revenue from energy shipments surged 18% to $576.9 million and agricultural revenue rose 3% to $344.5 million. But revenue from chemical traffic fell 8.6% to $387.6 million.
ROSEMONT, Ill. -- Wisconsin Central Transportation Corporation reported net income for the second quarter ended June 30 of $15.5 million versus second quarter 2000 net income of $7.8 million. Without special items, second quarter 2001 income would have been $16.1 million and second quarter 2000 income would have been $15.7 million.
WC's North American operating income for second quarter 2001 was $25.9 million compared to $24.2 million in the year-ago quarter. Second quarter 2001 North American operating revenues of $93.7 million were a second-quarter record, topping last year's revenues of $93.0 million. Despite a drop in carloadings, revenues were up because of a favorable shift in commodity mix as well as growth in haulage business.
© 2001 Brotherhood of Locomotive Engineers