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Researched by Industrial Info Resources (Sugar Land, Texas)--North America's rail industry saw so-so results in third-quarter 2015, as economic growth softened and shipments of items like coal continued their downward spiral. Five of six major rail carriers reported a drop in earnings from the same period in 2014. Industrial Info is tracking 257 active North American rail line projects worth $16.58 billion, and 24 active rail switching and terminal projects worth $3.21 billion.
Listed below is a summary of the rail carriers' third-quarter earnings.
CN Fortunes Rise on Favorable Currency Exchange Rate, Revenues
Canada's CN (Canadian National Railway Company) (NYSE:CNI) (Montreal, Quebec) reported an 18% rise in net income to C$11 billion ($750 million) during third-quarter 2015, as operating revenues rose 3% to C$3.22 billion ($2.42 billion). Without fluctuations between Canadian and U.S. currencies, net income for the quarter would have been lower by C$107 million ($81 million), according to the railway. Noting a "weaker volume environment," the railway saw revenue gains for automotive items, forest products, intermodal, chemicals, petroleum, grain and fertilizers. Revenues fell for coal, metals and minerals. The railway also experienced lower volumes of energy-related commodities, including crude oil, frac sand and drilling pipe.
CN said it expects to invest about C$2.7 billion ($2 billion) in its capital program for 2015.
Industrial Info is tracking 28 active CN projects worth $1.19 billion. This includes a $188 million intermodal and logistics hub at Milton, Ontario. Construction kickoff is slated for third-quarter 2016, with completion by the end of 2017.
Canadian Pacific Sees 19% Drop in Profits, Despite Revenue Climb
Canadian Pacific Railway Limited (NYSE:CP) (CP) (Calgary, Alberta) reported a third-quarter net income of C$323 million ($243 million), down 19% from the same quarter last year, while revenues rose 2% to $1.71 billion. Adjusted operating income climbed 10% to C$685 million ($516 million). Industrial Info is tracking 21 active Canadian Pacific projects worth $706 million. This includes $48 million for a 2016 Freight Rail Province-Wide Network Upgrade/Rehabilitation Program, stemming from its Lachine intermodal terminal in Quebec.
Earnings Nearly Flat for CSX
Eastern U.S. freight railway CSX Corporation (NYSE:CSX) (Jacksonville, Florida) reported net earnings of $507 million for the quarter, down only $2 million from a year earlier. Revenue declined 9% to $2.9 billion. Coal revenue was expected to fall by $450 million in 2015, primarily due to low natural gas prices and high coal inventories.
Industrial Info is tracking 40 CSX projects worth $2.63 billion, including a $120 million Ohio statewide network rehabilitation and upgrade project for this year.
Kansas City Southern Profits, Revenue Drop
Kansas City Southern (NYSE:KSU) (KCS) (Kansas City, Missouri) saw third-quarter net income fall nearly 5% to $131.5 million, as revenues dropped 7% to $632 million. Carload volumes fell 2.5%. Industrial Info is tracking seven KCS projects worth $539.88 million, including a Monterrey-to-Nuevo Laredo Railway in Mexico worth $145 million.
Union Pacific Profits Down $100 Million
Union Pacific Corporation (NYSE:UNP) (Omaha, Nebraska) reported third-quarter 2015 net income of $1.3 billion, compared to $1.4 billion a year earlier. Total volumes fell 6%, and quarterly freight revenue dropped 10%. The railway reported flat or decreased revenues for coal, automotive items, agricultural products, chemicals, intermodal ad industrial products.
Industrial Info is tracking 44 Union Pacific projects worth $3.33 billion, including a $400 million rail switching and classification yard in Hearne, Texas.
Norfolk Southern Reports 19% Drop in Profits
Norfolk Southern Corporation (NYSE:NSC) (Norfolk, Virginia) said its profits for the quarter fell to $452 million from $559 million in the same period a year earlier. Operating revenues dropped 10% to $2.7 billion, largely due to reductions in fuel surcharge revenues and continued reductions in coal shipments.
Industrial Info is tracking 39 Norfolk Southern projects worth $1.26 billion, including a $92 million Pennsylvania statewide rehabilitation and upgrade program for 2015.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Listed below is a summary of the rail carriers' third-quarter earnings.
CN Fortunes Rise on Favorable Currency Exchange Rate, Revenues
Canada's CN (Canadian National Railway Company) (NYSE:CNI) (Montreal, Quebec) reported an 18% rise in net income to C$11 billion ($750 million) during third-quarter 2015, as operating revenues rose 3% to C$3.22 billion ($2.42 billion). Without fluctuations between Canadian and U.S. currencies, net income for the quarter would have been lower by C$107 million ($81 million), according to the railway. Noting a "weaker volume environment," the railway saw revenue gains for automotive items, forest products, intermodal, chemicals, petroleum, grain and fertilizers. Revenues fell for coal, metals and minerals. The railway also experienced lower volumes of energy-related commodities, including crude oil, frac sand and drilling pipe.
CN said it expects to invest about C$2.7 billion ($2 billion) in its capital program for 2015.
Industrial Info is tracking 28 active CN projects worth $1.19 billion. This includes a $188 million intermodal and logistics hub at Milton, Ontario. Construction kickoff is slated for third-quarter 2016, with completion by the end of 2017.
Canadian Pacific Sees 19% Drop in Profits, Despite Revenue Climb
Canadian Pacific Railway Limited (NYSE:CP) (CP) (Calgary, Alberta) reported a third-quarter net income of C$323 million ($243 million), down 19% from the same quarter last year, while revenues rose 2% to $1.71 billion. Adjusted operating income climbed 10% to C$685 million ($516 million). Industrial Info is tracking 21 active Canadian Pacific projects worth $706 million. This includes $48 million for a 2016 Freight Rail Province-Wide Network Upgrade/Rehabilitation Program, stemming from its Lachine intermodal terminal in Quebec.
Earnings Nearly Flat for CSX
Eastern U.S. freight railway CSX Corporation (NYSE:CSX) (Jacksonville, Florida) reported net earnings of $507 million for the quarter, down only $2 million from a year earlier. Revenue declined 9% to $2.9 billion. Coal revenue was expected to fall by $450 million in 2015, primarily due to low natural gas prices and high coal inventories.
Industrial Info is tracking 40 CSX projects worth $2.63 billion, including a $120 million Ohio statewide network rehabilitation and upgrade project for this year.
Kansas City Southern Profits, Revenue Drop
Kansas City Southern (NYSE:KSU) (KCS) (Kansas City, Missouri) saw third-quarter net income fall nearly 5% to $131.5 million, as revenues dropped 7% to $632 million. Carload volumes fell 2.5%. Industrial Info is tracking seven KCS projects worth $539.88 million, including a Monterrey-to-Nuevo Laredo Railway in Mexico worth $145 million.
Union Pacific Profits Down $100 Million
Union Pacific Corporation (NYSE:UNP) (Omaha, Nebraska) reported third-quarter 2015 net income of $1.3 billion, compared to $1.4 billion a year earlier. Total volumes fell 6%, and quarterly freight revenue dropped 10%. The railway reported flat or decreased revenues for coal, automotive items, agricultural products, chemicals, intermodal ad industrial products.
Industrial Info is tracking 44 Union Pacific projects worth $3.33 billion, including a $400 million rail switching and classification yard in Hearne, Texas.
Norfolk Southern Reports 19% Drop in Profits
Norfolk Southern Corporation (NYSE:NSC) (Norfolk, Virginia) said its profits for the quarter fell to $452 million from $559 million in the same period a year earlier. Operating revenues dropped 10% to $2.7 billion, largely due to reductions in fuel surcharge revenues and continued reductions in coal shipments.
Industrial Info is tracking 39 Norfolk Southern projects worth $1.26 billion, including a $92 million Pennsylvania statewide rehabilitation and upgrade program for 2015.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
