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Researched by Industrial Info Resources (Sugar Land, Texas)--All said and done, U.S. and Canadian freight rail companies enjoyed a good third quarter this year, with stronger revenues driven in part by higher intermodal traffic in most cases, and movement of certain commodities.
The BNSF Railway Company, a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRKA) (Omaha, Nebraska), reported net income of $1.04 billion for the just-ended quarter, up 2% from the prior-year quarter. BNSF operates 32,500 miles of rail across the western two-thirds of the U.S. Revenues for third-quarter 2017 were $5.31 billion, up 3% from the prior year's quarter. Consumer products volumes were up 7%, due to higher domestic intermodal, international intermodal and automotive volumes.
U.S. intermodal rail traffic has been on the upswing. The Association of American Railroads (AAR) reported that October was the best month for intermodal rail traffic in history. U.S. railroads originated 1,144,157 containers and trailers last month, up 6.4% from October 2016.
BNSF said its industrial products volumes increased 2% in the third quarter, due to higher sand and other commodities that support oil and gas drilling. Several new frac sand mines are under development to support drilling in the Permian Basin and Eagle Ford Shale. For related information, see October 2, 2017, article - Frac Sand Market Roiled by New Capacity, Logistical Challenges.
BNSF said the volume increase was partially offset by lower petroleum products volume due to more oil being shipped via pipeline instead of rail. Also, agricultural products volumes were down 12%, driven by lower grain exports. Coal volumes increased 2%, due to the effect of higher natural gas prices, which led to power utilities using more coal.
Industrial Info is tracking nearly $695 million in BNSF project activity, including a $72 million, 927,112-square-foot warehouse now under construction in Edgerton, Kansas. Completion is expected in early 2018. For more information, see Industrial Info's project report.
Union Pacific Corporation (NYSE:UNP) (Omaha, Nebraska), which operates across 23 western U.S. states, reported third-quarter net income of $1.2 billion, up 9% over the same period last year. At $5.4 billion, operating revenue was up 5%, but business volumes fell by 1%, as increases in industrial products were more than offset by declines in agricultural products, automotive, chemicals and coal, the railway said. Intermodal volume was flat, but intermodal revenue was up 3%. Hurricane Harvey, which hit the Gulf Coast in late August, also impacted earnings, the railway said. Also in August, Union Pacific announced it was laying off 750 employees, mostly at its Omaha headquarters. For more information, see August 18, 2017, article - Union Pacific Lays Off 750 Employees in Cost-Cutting Move.
Industrial info is tracking $890 million in active Union Pacific projects, including plans for a $300 million classification railyard in Red Rock, Arizona. The project would include a 6-mile railroad switching yard to allow for greater capacity and efficiency. The project would kick off in third-quarter 2018. For more information, see Industrial Info's project report.
Canadian National Railway (CN) (NYSE:CNI) (Montreal, Quebec) said revenues increased by 7% to C$3.22 billion (US$2.52 billion) in the third quarter, with increased demand across business segments such as frac sand, intermodal, coal and Canadian grain. Even so, net income fell 1% to C$958 million (US$750 million). Chief Executive Officer Luc John said in the earnings release that CN was increasing investments in infrastructure and equipment by C$100 million (US$78 million), for a total capital program of C$2.7 billion (US$2.1 billion) in 2017.
Industrial Info is tracking CN's US$188 million intermodal and logistics hub project in Milton, Ontario. Now under preliminary design, the hub would serve four trains per day, and 350,000 containers per year. Kick-off is expected in mid-2019. For more information, see Industrial Info's project report.
Canadian Pacific Railway Limited (NYSE:CP) (Calgary, Alberta) reported growth in earnings and revenue for the just-ended quarter, as did CSX Corporation (NASDAQ:CSX) (Jacksonville, Florida), Norfolk Southern Corporation (NYSE:NSC) (Norfolk, Virginia) and Kansas City Southern (NYSE:KSU) (Kansas City, Missouri).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The BNSF Railway Company, a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRKA) (Omaha, Nebraska), reported net income of $1.04 billion for the just-ended quarter, up 2% from the prior-year quarter. BNSF operates 32,500 miles of rail across the western two-thirds of the U.S. Revenues for third-quarter 2017 were $5.31 billion, up 3% from the prior year's quarter. Consumer products volumes were up 7%, due to higher domestic intermodal, international intermodal and automotive volumes.
U.S. intermodal rail traffic has been on the upswing. The Association of American Railroads (AAR) reported that October was the best month for intermodal rail traffic in history. U.S. railroads originated 1,144,157 containers and trailers last month, up 6.4% from October 2016.
BNSF said its industrial products volumes increased 2% in the third quarter, due to higher sand and other commodities that support oil and gas drilling. Several new frac sand mines are under development to support drilling in the Permian Basin and Eagle Ford Shale. For related information, see October 2, 2017, article - Frac Sand Market Roiled by New Capacity, Logistical Challenges.
BNSF said the volume increase was partially offset by lower petroleum products volume due to more oil being shipped via pipeline instead of rail. Also, agricultural products volumes were down 12%, driven by lower grain exports. Coal volumes increased 2%, due to the effect of higher natural gas prices, which led to power utilities using more coal.
Industrial Info is tracking nearly $695 million in BNSF project activity, including a $72 million, 927,112-square-foot warehouse now under construction in Edgerton, Kansas. Completion is expected in early 2018. For more information, see Industrial Info's project report.
Union Pacific Corporation (NYSE:UNP) (Omaha, Nebraska), which operates across 23 western U.S. states, reported third-quarter net income of $1.2 billion, up 9% over the same period last year. At $5.4 billion, operating revenue was up 5%, but business volumes fell by 1%, as increases in industrial products were more than offset by declines in agricultural products, automotive, chemicals and coal, the railway said. Intermodal volume was flat, but intermodal revenue was up 3%. Hurricane Harvey, which hit the Gulf Coast in late August, also impacted earnings, the railway said. Also in August, Union Pacific announced it was laying off 750 employees, mostly at its Omaha headquarters. For more information, see August 18, 2017, article - Union Pacific Lays Off 750 Employees in Cost-Cutting Move.
Industrial info is tracking $890 million in active Union Pacific projects, including plans for a $300 million classification railyard in Red Rock, Arizona. The project would include a 6-mile railroad switching yard to allow for greater capacity and efficiency. The project would kick off in third-quarter 2018. For more information, see Industrial Info's project report.
Canadian National Railway (CN) (NYSE:CNI) (Montreal, Quebec) said revenues increased by 7% to C$3.22 billion (US$2.52 billion) in the third quarter, with increased demand across business segments such as frac sand, intermodal, coal and Canadian grain. Even so, net income fell 1% to C$958 million (US$750 million). Chief Executive Officer Luc John said in the earnings release that CN was increasing investments in infrastructure and equipment by C$100 million (US$78 million), for a total capital program of C$2.7 billion (US$2.1 billion) in 2017.
Industrial Info is tracking CN's US$188 million intermodal and logistics hub project in Milton, Ontario. Now under preliminary design, the hub would serve four trains per day, and 350,000 containers per year. Kick-off is expected in mid-2019. For more information, see Industrial Info's project report.
Canadian Pacific Railway Limited (NYSE:CP) (Calgary, Alberta) reported growth in earnings and revenue for the just-ended quarter, as did CSX Corporation (NASDAQ:CSX) (Jacksonville, Florida), Norfolk Southern Corporation (NYSE:NSC) (Norfolk, Virginia) and Kansas City Southern (NYSE:KSU) (Kansas City, Missouri).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
