Tue, Jan. 26, 4:48 PM
- Canadian National Railway (NYSE:CNI) declares C$0.375/share quarterly dividend, 20% increase from prior dividend of $0.3125.
- Forward yield 2.1%
- Payable March 31; for shareholders of record March 10; ex-div March 8.
Tue, Jan. 26, 4:08 PM
- Canadian National Railway (NYSE:CNI): Q4 EPS of C$1.18 beats by C$0.06.
- Revenue of C$3.17B (-1.2% Y/Y) misses by C$90M.
Tue, Jan. 26, 3:57 PM
- Canadian National Railway (CNI +2.9%) CEO Calude Mongeau has returned to work after a five-month absence for treatment of a pre-cancerous tumor, and will lead the company's upcoming earnings call with analysts.
- Mongeau stepped down from CNI's day-to-day operations in August after disclosing he would need surgery and radiation to treat a rare type of soft tissue tumor in his larynx.
- While all rails are struggling amid the weak commodity price environment, analysts say CNI is in relatively good shape thanks to a favorable exchange rate, the company's low exposure to bulk goods and its higher exposure to the strong U.S. consumer market.
Mon, Jan. 25, 5:35 PM
Mon, Jan. 11, 6:57 PM
- Railroad cargo in the U.S. dropped the most in six years in 2015 and the new year's outlook - for the industry, as well as the U.S. economy - is troubling, according to a new report from Bank of America.
- "Rail data may be signaling a warning for the broader economy," BofA says, noting that carloads have declined more than 5% Y/Y in each of the past 11 weeks, and "the current period of substantial and sustained weakness, including last week’s -10.1% decline, has not occurred since 2009."
- BofA says its analysis of the past 30 years shows all such steep declines in rail carloads preceded or were accompanied by an economic slowdown.
- Much of the decline is easily traced to the sharp drop in the amount of oil hauled on U.S. railways as refineries swallow more foreign supplies in the face of falling domestic crude output; Genscape says rail deliveries to U.S. Atlantic coast terminals continued to drop to the end of the year and the spot market for crude delivered by rail from North Dakota’s Bakken region “is at a near standstill.”
- But the BofA team thinks the slowdown is spreading to more consumer-oriented segments, citing a 1.7% Q4 Y/Y drop in intermodal carloads typically related to consumer goods after rising 1% in Q1 2015 and 3.6% in Q2.
- Relevant tickers: UNP, CSX, KSU, NSC, CP, CNI, GWR, BRK.A, BRK.B
Dec. 18, 2015, 5:29 PM
- CN (CNI +0.4%) says it will buy back its common shares under a specific-share repurchase program.
- The buys will fit into the normal course issuer bid that the company announced Oct. 27.
- Working with a third party, the company will buy back shares daily from Dec. 29 (or completion of the previous agreement) until Feb. 29, with a maximum of 4.356M common shares.
- The third party will buy shares on the open market, while the transaction price between CN and the third party will be negotiated.
Dec. 11, 2015, 4:45 PM
- Select railroad stocks were an island in the storm today after Bloomberg reported that Berkshire Hathaway's BNSF Railway (BRK.A, BRK.B) is considering making a competing bid for Norfolk Southern (NYSE:NSC).
- While BNSF Executive Chairman Matt Rose does not favor more North American rail mergers, he tells Bloomberg the company would not sit on the sidelines in any fresh dealmaking: “If there is consolidation to be had, we would participate as well.”
- Rose’s remarks raise the prospect of another suitor for NSC, which already has turned down Canadian Pacific (NYSE:CP); CSX, NSC’s larger rival in the eastern U.S., would be “very much in play” if CP succeeded with its effort, Rose says, noting that “we’ve never in this industry just done one merger" at a time.
- In today's trade: NSC +2%, CP -2%, CSX +4.1%, UNP -0.2%, KSU -0.1%, CNI -2.1%.
Dec. 4, 2015, 2:57 PM
- Railroad stocks are broadly lower following Norfolk Southern's (NSC -1.2%) sharp rebuke of Canadian Pacific Railway's (CP -4.5%) takeover bid "at any price" and a BofA Merrill Lynch negative research note on the sector.
- CEO James Squires tells Bloomberg that NSC execs “haven’t talked to a single customer that supports the idea" of merging with CP, and that “our customers’ responses range from highly skeptical to vehemently opposed."
- Citing volume declines and weak trends that look to continue into 2016, BofA downgrades CSX (CSX -1.3%) and Union Pacific (UNP -1.2%) to Neutral from Buy, as the firm remains negative on rails with significant coal exposure, and cuts Kansas City Southern (KSU -1.5%) and Genesee & Wyoming (GWR -5.3%) to Underperform from Neutral; the firm lowers KSU due to its growth premium in an environment of slowing growth and cut GWR due to its commodity exposure.
- BofA reiterates its Buy rating on Canadian National (CNI -1.2%), citing CNI's significantly lower coal exposure, robust intermodal share gains and attractive risk/reward returns.
Dec. 2, 2015, 5:15 PM
- CSX and Kansas City Southern (NYSE:KSU) posted respective showings of -3.7% and -7.1% in today's trade after offering downbeat outlooks at a Credit Suisse industrials conference.
- CSX CFO Frank Lonegro said the company now expects FY 2015 EPS growth of ~3% after issuing guidance in October for annual EPS of $2.00-$2.04, or growth of at least 4%.
- "While we continue to expect to move around 30M tons of export coal for the full year, domestic coal movements have declined more significantly in the fourth quarter than expected," Lonegro said.
- KSU CFO Michael Upchurch said he expects Q4 revenue to decline at a high single-digit percentage rate from a year ago, vs. revenue consensus of $622M implying a 3.3% decline.
- KSU also said that after a strong start to Q4 in October, intermodal volumes decelerated in November, to signal an end to the peak season.
- Also today: UNP -2.7%, NSC -2.8%, CP -2.7%, CNI -2.1%, IYT -2.1%.
Nov. 10, 2015, 6:31 PM
- The U.S. Department of Transportation denies an appeal by railroads challenging new crude-by-rail rules that require the installation of expensive new brakes on trains hauling hazardous flammable materials.
- The rules issued in May include the phasing in of tougher tank car standards over several years and requirements for new braking systems on trains hauling more than 70 cars of crude oil by 2021.
- Relevant tickers include CSX, NSC, UNP, KSU, BRK.A, BRK.B, CNI, CP, TRN, GBX, WAB, ARII, RAIL
- Earlier: Norfolk Southern CEO says new rules could make oil-by-rail too expensive (May 5)
Oct. 30, 2015, 1:04 PM
- U.S. rail traffic fell 5.6% to 553,144 carloads and intermodal units for the week which ended on October 24. Intermodal volume was off 3.7% for the period.
- Weak traffic was seen for the transport of petroleum (-21%), metallic ores/metals (-19%), and coal (-13%). Grain and motor vehicles were the commodities groups which showed traffic strength once again.
- Mexican and Canadian railroads also reported a drop in traffic.
- Total combined U.S. traffic is down 1.3% YTD to 22.962M carloads and intermodal units.
- Total combined North American rail volume is off 1.1% YTD to 29.895M carloads and intermodal units.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
Oct. 27, 2015, 5:20 PM
- Canadian National Railway (NYSE:CNI) declares C$0.3125/share quarterly dividend, in line with previous.
- Forward yield 1.57%
- Payable Dec. 31; for shareholders of record Dec. 10; ex-div Dec. 8.
Oct. 27, 2015, 4:11 PM
- Canadian National Railway (NYSE:CNI): Q3 EPS of C$1.26 beats by C$0.11.
- Revenue of C$3.22B (+3.2% Y/Y) beats by C$20M.
Oct. 27, 2015, 3:29 PM
- Railroad and trucking stocks are down today on a mix of news seen as negative for the transportation sector. UPS reported lower package volume in Q3 and durable-goods orders fell in September.
- Decliners include Norfolk Southern (NSC -3.6%), Union Pacific (UNP -5.1%), CSX Corporation (CSX -3.8%), Kansas City Southern (KSU -4.4%), Canadian Pacific(CP -5.4%), Canadian National Railway (CNI -3.9%), Genesee & Wyoming (GWR -5.3%), XPO Logistics (XPO -11.8%), Echo Global Logistics (ECHO -12.6%), C.H. Robinson Worldwide (CHRW -2.8%), Radiant Logistics (RLGT -7.9%), FedEx (FDX -1.4%), Air T (AIRT -5.9%), and Air Transport Services (ATSG -3.2%).
- The iShares Dow Jones Transportation ETF (NYSEARCA:IYT) is down 2.7%.
- Related: Tough day for four wheelers (Oct. 27)
Oct. 27, 2015, 2:13 AM
- Railroads are amplifying warnings that the U.S. transportation network could grind to a halt at the start of the new year if Congress makes them stick to a year-end deadline to install a new safety system called "positive train control" - rail's version of air traffic control.
- The railroads appear likely to get their wish. Late Friday, lawmakers tacked a three year extension on to a transportation funding bill, which is widely expected to pass both houses this week.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN, GWR, TRN, RAIL
Oct. 26, 2015, 5:35 PM
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Canadian National Railway Co. is engaged in the rail and related transportation business. The company offers integrated transportation services: rail, intermodal, trucking, freight forwarding, warehousing and distribution. It offers movement of a diversified and balanced portfolio of goods... More
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