Railroad News

Rail News Home Canadian Pacific 1/28/2021 Rail News: Canadian Pacific
The railroad's OR of 53.9%, down from 57% in Q4 2019, reached a record low.Photo – cpr.ca

Rail News Home Norfolk Southern Railway 1/27/2021 Rail News: Norfolk Southern Railway
Norfolk Southern Corp. today reported fourth-quarter 2020 net income increased 1% to $671 million, or $2.64 diluted earnings per share, from $666 million, or $2.55 per share, in the same quarter in 2019.The Class I's fourth-quarter railway operating revenue fell 4% to $2.6 billion, driven by a 1% decline in volume, lower fuel surcharges and differing business mix, NS officials said in a press release.Railway operating expenses were $1.6 billion, down 8%. Lower fuel costs, compensation and benefits and purchased services were partially offset by lower gains on property sales, company officials said.Income from railway operations climbed 2% to $1 billion. NS posted an operating ratio of 61.8% for the quarter, an all-time record, compared with 64.2% in the same 2019 period."As we take stock of what we achieved in 2020 while managing both the pandemic and energy market challenges, including the successful idling of four additional hump operations while driving productivity to record levels, we see much more opportunity ahead," said Chairman, President and Chief Executive Officer James Squires. "We have set the stage to drive further efficiency and profitable growth in 2021 through our precision scheduled railroading operating plan, which will deliver long-term value for both our shareholders and customers."NS also announced plans to spend about $1.6 billion on capital expenditures in 2021.  

Rail News Home Canadian National Railway - CN 1/27/2021 Rail News: Canadian National Railway - CN
CN yesterday reported higher revenue, operating income and earnings per share for fourth-quarter 2020 compared with the same period a year ago.The Class I reported fourth-quarter revenue increased 2% to CA$3.7 billion; operating income rose 16% (13% on an adjusted basis) to CA$1.4 billion; and diluted earnings per share climbed 17% (14% on an adjusted basis) to CA$1.43, CN officials said in a press release.The company posted an operating ratio in the quarter of 61.4%, a decrease of 4.6 points (3.8 points on an adjusted basis) compared with the same quarter in 2019.CN attributed the increase in revenue mainly to record shipments of Canadian grain, increased shipments of U.S. grain, higher international container traffic via the Port of Vancouver and freight rate increases. Those factors were partly offset by lower applicable fuel surcharge rates and lower volumes of petroleum crude.Revenue ton miles (RTMs), measuring the weight and distance of freight transported by CN, increased 10%. Freight revenue per RTM fell 6%, mainly driven by an increase in the average length of haul, changes in business mix and lower applicable fuel surcharge rates; partly offset by freight rate increases.Operating expenses for the quarter decreased 5% to CA$2.2 billion. The decrease was attributed mainly to lower fuel costs, as well as lower purchased services and materials expense."While the recovery remains uneven across the markets we serve, we are pleased by the momentum in volume demand that grew during the fourth quarter and continues to grow," said CN President and Chief Executive Officer JJ Ruest. "We are increasingly optimistic about 2021 and are reinstating our full-year financial outlook."CN expects to invest CA$3 billion in capital projects in 2021, Ruest said.