Railroad News

Rail News Home Canadian Pacific 7/28/2022 Rail News: Canadian Pacific
Canadian Pacific today announced it posted "strong" second-quarter 2022 results, including revenue of CA$2.2 billion, a 7% increase compared with the same period last year.The railroad reported operating income of CA$868 million, up from CA$820 million a year ago. Net income of CA$765 million for the quarter was down from CA$1.2 million posted in Q2 2021.CP reported diluted earnings per share (EPS) of 82 cents, down 56%, and an adjusted diluted EPS of 95 cents, down 8%.In addition, CP posted a Q2 2022 operating ratio (OR) of 60.6%, up from 60.1% a year ago, and an adjusted OR of 59.7%, up from 55.3% last year."After a challenging first quarter of the year, I'm proud of the resiliency and discipline the CP team demonstrated to deliver these results," said President and CEO Keith Creel in a press release.During the quarter ending June 30, CP incurred $19 million in costs related to its acquisition of Kansas City Southern."The strong demand environment for North American goods and commodities, coupled with our own unique growth initiatives and the promising upcoming Canadian grain crop, gives me confidence that we will continue to see momentum build into the back half of 2022 and beyond," said Creel.The proposed merger of CP and KCS is awaiting approval from the Surface Transportation Board. Earlier this week, the board announced it scheduled a public hearing on the acquisition for Sept. 28, 29 and 30.

Rail News Home Canadian National Railway - CN 7/27/2022 Rail News: Canadian National Railway - CN
CN yesterday reported record second-quarter 2022 revenue of CA$4.3 billion, up 21%, and record operating income of CA$1.8 billion, up 28%, compared with the same period in 2021.The Class I also posted record adjusted diluted earnings per share (EPS) in the quarter of CA$1.93, a 30% increase, and diluted EPS of $CA1.92, up 32% compared with earnings in Q2 2021.The railroad delivered a "solid" operating performance in key metrics such as origin train performance, car velocity, through dwell and record fuel efficiency, resulting in a lower operating ratio, CN officials said in a press release.“I am proud of our team of railroaders and pleased with our solid performance this quarter," said President and CEO Tracy Robinson. "Our team has the network running well, demonstrating improvements in service levels to our customers, driving greater velocity and generating strong financial results. We are preparing for a busy fall and are well positioned to achieve our 2022 outlook.”CN attributed the quarterly revenue increase mainly to higher applicable fuel surcharge rates, freight rate increases, higher Canadian export volumes of coal via West Coast ports, higher volumes of U.S. grain and the positive translation impact of a weaker Canadian dollar, partly offset by significantly lower export volumes of Canadian grain.The railroad's operating ratio in the quarter was 59.3%, an improvement of 2.3 points. The adjusted operating ratio of 59% improved 2.6 points.The railroad is confirming its 2022 outlook target to deliver 15% to 20% adjusted diluted EPS growth. CN continues to target an operating ratio below 60% for the year.

Rail News Home Norfolk Southern Railway 7/27/2022 Rail News: Norfolk Southern Railway
Norfolk Southern Corp. today reported second-quarter 2022 railway operating revenue of $3.3 billion, up 16%, and income from railway operations of $1.3 billion, up 9% compared with Q2 2021 results.The Q2 2022 railway operating revenue reached an all-time quarterly high, with the year-over-year increase driven by a 20% hike in revenue per unit. Railway operating income also set a record. NS posted Q2 2022 net income of $819 million, about the same as a year ago, and diluted earnings per share of $3.45, a 5% increase.Railway operating expenses totaled $2 billion, a 21% increase compared with the same period last year due to higher fuel prices, lower property sales and increased costs from inflation and service challenges, NS officials said in a press release.The Class I posted a Q2 2022 operating ratio of 60.9% compared to 58.3% a year ago."The Norfolk Southern team was able to deliver solid financial performance in the second quarter, despite network fluidity challenges,” said President and CEO Alan Shaw. “We remain steadfast in our commitment to service recovery."In the quarter, NS made "considerable progress" on staffing and launched its TOP|SPG (thoroughbred operating plan | service, productivity and growth) operating model, both of which are key to achieving the company's targeted service levels and long-term growth strategy, Shaw said."Already, we are seeing visible upticks in qualified employees and train speeds as a result of these initiatives, and we expect to see further progress on service recovery in the months ahead," he said.