Tue, Jul. 14, 4:08 PM
- CSX Corporation (NYSE:CSX) reports it struck an all-time high operating ratio of 66.8% in Q2.
- Volume was down 1% during the period.
- The company was able to lower expenses by 9% to help offset the 6% drop in revenue.
- Guidance: CSX expects domestic coal revenue to fall 10% this year. Margins are seen rising as a full-year mid-60s operating ratio is targeted.
- CSX +3.37% after hours.
Tue, Jul. 14, 4:07 PM
Tue, Jul. 14, 9:29 AM
- Earnings season for the railroad sector launches tonight when CSX Corp. reports with expectations EPS will be flat compared to a year ago at $0.53.
- The company lowered its guidance in April to single-digit earnings growth for the full year in a shot heard across the sector.
- Freight traffic has been in decline due to lower shipments of crude oil, coal, and grains, although some analysts have forecast increased demand for consumer goods could help to offset trends in the energy market.
- Today's big miss in retail sales doesn't bode particularly well for that line of thought.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
- CSX earnings preview
Mon, Jul. 13, 5:35 PM
Fri, Jul. 10, 10:48 AM
Wed, Jul. 8, 4:10 PM
Thu, Jun. 11, 5:49 PM
- CSX jumped 3% today amid continued railroad merger speculation as well as a 9.4% increase in the company’s intermodal cargo reported in yesterday’s weekly traffic update from the Association of American Railroads.
- "The bigger weight is around the speculation of the merger," Cowen's Matt Elkott told Bloomberg; once Canadian Pacific CEO Hunter Harrison mentioned a merger attempt last October, "it wasn't going to go away," the analyst said.
Wed, Jun. 3, 12:37 PM
- CSX (CSX +0.3%) says overall volume in Q2 is tracking slightly below last year's level.
- EPS growth is forecast to be flat to slightly up compared to last year.
- For the full year, CSX see EPS growth in the mid-to-high single digit range.
- Execs presented today at the Deutsche Bank Global Industrials & Basic Material Conference.
Thu, May 21, 5:15 PM
- The Association of American Railroads says crude oil carried by big U.S. railroads fell nearly 14% Q/Q to ~113K carloads as oil companies cut back domestic shipments.
- Industry execs have cautioned that lower oil prices could end up slowing volume growth this year because the low prices will not support Bakken Shale crude, which is more expensive to extract and ship than other oil.
- Although total rail cargo volumes have continued to come in below expectations, Morgan Stanley analysts say a rally in energy prices could help boost railroad stock prices.
- Relevant tickers: CSX, NSC, UNP, KSU, BRK.A, BRK.B
Thu, May 14, 10:04 AM
- Railroad stocks are tilting lower after Kansas City Southern pulls its 2015 guidance at an investor conference.
- Investors are taking a cautious approach to Union Pacific (UNP -0.3%), Genesee & Wyoming (GWR -2.2%), Norfolk Southern (NSC -0.6%), CSX Corporation (CSX -0.1%), Canadian National Railway (CNI -0.5%), and Canadian Pacific (CP -0.3%) off the warning from Kansas Southern.
- Safety concerns also continue to linger in the sector which is seen as a development that could put some pressure on spending and investments.
- Previously: Kansas City Southern -3% after pulling guidance
Wed, May 13, 11:24 AM
- The U.S. oil industry is challenging new rules aimed at improving the safety of moving crude oil by rail, as the American Petroleum Institute petitions the U.S. Court of Appeals for the D.C. Circuit to block key provisions of rules unveiled earlier this month.
- The petition seeks to block a requirement that older tank cars be retrofitted with new safety features designed to prevent them from spilling oil or rupturing in a derailment, and challenges a requirement that tank cars be equipped with new electronic braking systems or face operational restrictions.
- Environmental groups say the new rules do not go far enough, and are considering their own legal challenge.
- Relevant tickers: CSX, NSC, UNP, CNI, CP, KSU, BRK.A, BRK.B, GBX, WAB, TRN, ARII, RAIL
Tue, May 5, 5:43 PM
- Norfolk Southern (NYSE:NSC) CEO Wick Moorman says the rail industry will challenge the U.S. government’s new crude-by-rail regulations, worried that the new rules could make shipping crude oil by train prohibitively expensive.
- The Department of Transportation last Friday called for the installation of new braking systems on trains hauling more than 70 cars of crude oil by 2021, a requirement Moorman says took the rail industry by surprise.
- The CEO tells WSJ that the new rules place railroads in a difficult spot because railroads do not own the vast majority of tank cars and thus have no control over whether the costly new brakes are installed; also, the brake requirement is not a mandate for tank car owners, only railroads, he says.
- Moorman says he is sure the industry will challenge the new rules either in court or petition the DoT for reconsideration.
- Relevant tickers: CSX, UNP, CNI, CP, KSU, BRK.A, BRK.B, GBX, WAB, TRN, ARII, RAIL
Mon, May 4, 1:08 PM| Mon, May 4, 1:08 PM | 5 Comments
Fri, May 1, 4:48 PM
- CSX jumped nearly 4% today on speculation that Bill Ackman has acquired a sizable stake in the railroad, and could reveal the stake Monday afternoon when he is scheduled to present at the Ira Sohn conference.
- Earlier this week, UBS analyst Thomas Wadewitz wrote that recent action in the stock suggests Ackman has been accumulating a position, and noted similar patterns observed with his stake in Canadian Pacific.
Fri, May 1, 2:36 PM
- U.S. regulators issue tough new rules for safer transportation of crude oil by trains, introducing a new tank car standard and mandating the use of new braking technology.
- The rules require that the oldest, least safe tank cars be replaced within three years with new cars that have thicker shells, higher safety shields and better fire protection; a later generation of tank cars, built since 2011 with more safety features, will have to be retrofitted or replaced by 2020.
- Regulators are not asking railroads to notify communities of any oil train traffic but will require a “point of contact” for information related to the routing of hazardous materials.
- Shares of tank car makers are higher: GBX +7.2%, WAB +7.4%, TRN +7.4%, ARII +7.2%, RAIL +5.7%.
- Other relevant tickers: CSX, NSC, UNP, CNI, CP, KSU, BRK.A, BRK.B
Mon, Apr. 27, 12:59 PM
- Declining output from shale oil fields has in turn cut demand for key types of railroad cars, according to new industry figures, in the latest sign of the fallout from lower crude oil prices.
- Buyers ordered 4,470 new railway tank cars during Q1, down 6% Y/Y and ~70% below the nearly 15K tank cars ordered during Q4, according to the Railway Supply Institute trade group.
- Q1 orders for covered “hopper” cars, used mostly to deliver fracking sand to drill sites, also fell to 131 cars from 11.5K a year ago and 8,627 cars during Q4.
- Tank car orders had surged with shale oil output, generally transported to refineries by rail, but output from North Dakota’s Bakken Shale field dropped in both January and February, and the U.S. Energy Department predicts continued declines in output there for April and May.
- Relevant tickers: TRN, ARII, GBX, WAB, CSX, NSC, UNP, CNI, CP, KSU, BRK.A, BRK.B
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