Dec. 2, 2015, 12:17 PM
- Transportation stocks are lower on the day on some broad macroeconomic concerns. Some BAML downgrades in the sector are also weighing on sentiment.
- Trading is notably weak in CXS Corp (CSX -2.3%), American Railcar Industries (ARII -2.6%), Kansas City Southern (KSU -1.9%), YRC Worldwide (YRCW -5.7%), Heartland Express (HTLD -3.7%), Swift Transportation (SWFT -3%), FedEx (FDX -0.9%), UPS (UPS -0.5%), Air Transport Services (ATSG -1.7%), and Matson (MATX -2.5%).
- A notable exception to the sector slide is airline stocks which are showing strength after Delta Air Lines (DAL +2.7%) reported some eye-opening capacity constraint. The major carrier increased passenger revenue per available seat mile sand load factor during November. A 3% decline in crude oil prices is also factoring in to the rally in airline stocks.
- United Continental (UAL +3.2%), Hawaiian Holdings (HA +2.9%), Southwest Airlines (LUV +2.3%), and Republic Airways Holdings (RJET +4.4%) are all solidly higher.
- The Dow Jones Transportation Average is down 0.8% off the conflicting forces of gravity.
- Related ETFs: IYT, XTN, JETS.
Jul. 23, 2014, 11:33 AM
- The Obama administration proposes to phase out thousands of older railroad tank cars that carry crude oil and ethanol within two years, as part of a safety upgrade for trains carrying flammable fuels.
- The deadline is faster than Canada's three-year timeline to upgrade or phase out railcars used to carry oil, ethanol and other hazardous liquids.
- Other new proposals include a 40 mph speed limit until sturdier tank cars can be built or existing railcars can be strengthened.
- The proposals are sweeping but are considered less stringent than some in the rail and energy industries had feared.
- ARII +4.9%, GBX +2.1%, TRN +2.1%, RAIL +0.4%.
May 1, 2014, 12:48 PM
Mar. 3, 2014, 3:21 PM
- Shares of Greenbriar (GBX +3.1%) hit a nearly eight-year high after the company said it received orders for 5,600 railroad cars valued at ~$460M in the quarter ended Feb. 28.
- The orders included 1,200 intermodal cars used to transport containers from railroads to ships and trucks; other orders included small hoppers and tank cars used in the energy sector, and automotive-related products for the U.S. auto industry.
- GBX and others that supply equipment and services to the railroad industry such as Trinity Industries (TRN -0.8%), Wabtec (WAB -0.5%) and American Railcar (ARII +1.6%) have benefited in recent years as shipments of crude oil surged.
Feb. 20, 2014, 12:47 PM
Feb. 20, 2014, 10:44 AM
- Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway says it plans to buy its own fleet of up to 5,000 new crude oil tank cars with safety features that exceed the latest standards adopted by the industry more than two years ago.
- BNSF's plan, unusual for a railroad which generally owns only the tracks and locomotives that pull trains, is intended to further the industry's push for safer movement of crude by rail in light of several recent derailments and crashes, including one involving a BNSF train in North Dakota last December.
- BNSF isn't identifying railcar makers from which it will seek bids, but U.S. manufacturers include Trinity Industries (TRN +9.5%), American Railcar Industries (ARII +10.3%) and Greenbrier (GBX +5.4%).
Apr. 25, 2013, 11:33 AM
American Railcar Industries (ARII -10.7%) slides after missing Q1 estimates. Despite the miss, total sales actually rose 7% Y/Y, primarily due to an increase in revenues from its manufacturing and leasing segments. Manufacturing revenues increased 8% as the company shifted its sales mix to focus more on tank railcars, which partially offset a decrease in the volume of hopper railcar shipments.| Apr. 25, 2013, 11:33 AM | 1 Comment
Dec. 20, 2012, 12:45 PM
Mar. 12, 2012, 12:19 PMShares of FreightCar America (RAIL -6.1%) tilt lower after KeyBanc slaps the company with a downgrade to Underweight from Hold along with lowered estimates for FY12 earnings. Looking ahead to next year, analysts see the company's coal car volume and revenue tailing off. It's been a bad day across the sector after an accident in China threw a spotlight on safety concerns. GBX -4.5%, ARII -7.9% on KeyBanc downgrade to Hold. | Mar. 12, 2012, 12:19 PM | 1 Comment