Coal Rebound Fuels Railroad Profits

SUGAR LAND--May 12, 2017--Researched by Industrial Info Resources (Sugar Land, Texas)--While much of the press discusses how natural gas has been displacing coal as a fuel source at power plants, delivery of the black fuel during the first quarter of this year helped push U.S. rail profits higher. Late last year, the U.S. Energy Information Administration stated that U.S. coal use was likely to increase in the first quarter of this year because of increasing natural gas prices. Rail deliveries seem to have proved the agency correct. Rail operators Union Pacific Corporation (NSYE:UNP) (Omaha, Nebraska), Kansas City Southern (NSYE:KSU) (Kansas City, Missouri) and Norfolk Southern Corporation (NYSE:NSC) (Norfolk, Virginia) posted higher year-over-year profits in first-quarter 2017, in some cases setting quarterly income records. For all of these companies, income from coal delivery was up significantly.

Within this article: Details of higher coal profits and rail projects