first quarter 2021

FreightCar America eyes improving market conditions

A photograph of two railcars at a rail yard.

With one quarter in 2021 under its belt, railcar manufacturer FreightCar America believes its new manufacturing footprint, coupled with positive market conditions, will make 2021 a good year for the company.

“The year 2021 is about building momentum in support of expansion and profitable growth as we move forward. We’re very pleased with how the new operation is performing … We believe that we are in a good position to start winning,” FreightCar America President and CEO Jim Meyer said during...

https://www.freightwaves.com/news/freightcar-america-eyes-improving-market-conditions

5 takeaways from Class I railroads’ earnings season

A photograph of a train hauling intermodal containers.

The first-quarter 2021 earnings season for the Class I railroads is over. An optimistic volume outlook, especially for the second half of 2021, plans to improve operational efficiency and take market share away from trucks, and a proposed Class I Canadian railway merger with Kansas City Southern (NYSE: KSU) were among the key themes expressed by railroad executives.

“The underlying message is there are expectations that the efficiency improvements are going to  continue and they’ll be able to...

https://www.freightwaves.com/news/5-takeaways-from-class-i-railroads-earnings-season

Hub Group expects intermodal growth to support company investments

A photograph of intermodal containers double stacked on a train.

Hub Group (NASDAQ: HUBG) expects intermodal growth to persist in 2021, and the company sees itself working well with its partners to take advantage of growth opportunities.

TIght truck capacity, escalating fuel prices, a driver shortage and companies’ focus on lowering their carbon footprint are all factors that bode well for intermodal growth in 2021, according to Hub Group President and COO Phil Yeager. These factors also will support Hub Group’s investments in intermodal, he said.

Capital...

https://s29755.pcdn.co/news/hub-group-expects-intermodal-growth-to-support-company-investments

BNSF’s parent company responds to KCS merger activity

A photograph of a BNSF locomotive hauling intermodal containers across a desert.

Count BNSF (NYSE: BRK.B) as one of those watching how efforts by Canadian Pacific (NYSE: CP) and CN (NYSE: CNI) to acquire Kansas City Southern (NYSE: KSU) play out.

Executives with BNSF parent company Berkshire Hathaway noted on Saturday during the company’s annual shareholder meeting that BNSF will seek opportunities to protect its franchise as the merger proceedings go before the Surface Transportation Board for review.

BNSF has a “strong presence” in Mexico, although not as strong as its...

https://www.freightwaves.com/news/bnsfs-parent-company-responds-to-kcs-merger-activity

Bracing for autonomous truck competition, Norfolk Southern maps out improvements

A photograph of a Norfolk Southern train rolling through a field.

Norfolk Southern (NYSE: NSC) is in the midst of deploying longer trains and increasing car velocity as ways to enhance the railroad’s productivity, executives said during a call on Wednesday to discuss NS’ financial results for the first quarter of 2021. 

To make these operational adjustments, NS is targeting investments in certain parts of its network, including a long siding extension in its Chicago-Atlanta corridor that will be completed ahead of this year’s peak season, according to Chief...

https://www.freightwaves.com/news/bracing-for-autonomous-truck-competition-norfolk-southern-maps-out-improvements

Norfolk Southern achieves all-time quarterly operating ratio record

A photograph of a Norfolk Southern train rolling across a field.

Norfolk Southern (NYSE: NSC) reached an all-time quarterly record operating ratio (OR) in the first quarter amid a 7% increase in operating income.

Norfolk Southern’s (NS) OR was 61.5% in the first quarter of 2021, compared with an adjusted OR of 63.7% in the first quarter of 2020. On an unadjusted basis, first-quarter 2021 OR was 78.4%. The adjusted figure accounts for NS’ sale of 703 locomotives that it deemed that it no longer needed. The sale resulted in a $385 million loss, which was the...

https://www.freightwaves.com/news/norfolk-southern-achieves-all-time-quarterly-operating-ratio-record

CN confident in market share take from trucking via KCS merger

A photograph of a CN train crossing a bridge.

Canadian railway CN (NYSE: CNI) insists that ensuring competition among other railroads and shippers will be a priority should it succeed in merging with Kansas City Southern (NYSE: KSU).

CN and rival railway Canadian Pacific (NYSE: CP) each are seeking to acquire Kansas City Southern (KCS). CP and KCS announced their agreement to merge last month, while CN announced its plans to acquire KCS last week. Both have been aggressively seeking to win the hearts of shippers, stakeholders and the...

https://www.freightwaves.com/news/cn-confident-in-market-share-take-from-trucking-via-kcs-merger

CN’s first-quarter net income slips nearly 4%

A photograph of a CN train passing by a mountainside lake.

CN’s (NYSE: CNI) net profit for the first quarter of 2021 fell 3.7% to CA$974 million, or $1.37 per diluted share, compared with CA$1.01 billion, or $1.42 per diluted share, in the first quarter of 2020. One Canadian dollar equals 81 cents in U.S. dollars.

First-quarter revenue was “in line” with a year ago, at CA$3.54 billion on record intermodal traffic and shipments of Canadian grain, offset by pandemic-induced lower volumes for other commodity groups. A stronger Canadian dollar, lower fuel...

https://s29755.pcdn.co/news/cns-first-quarter-net-income-slips-nearly-4

Union Pacific warns about downstream impacts of KCS merger

A photograph of a Union Pacific train.

Any merger involving Kansas City Southern (NYSE: KSU) and either Canadian Pacific (NYSE: CP) or CN (NYSE: CNI) should be scrutinized by regulators to ensure that the combined railroad doesn’t cause downstream impacts to the value of competing railroads, the head of Union Pacific (NYSE: UNP) said Thursday.

CP and Kansas City Southern (KCS) last month agreed to merge, while CN made a bid for KCS on Tuesday. For both combinations, the end result would be a railroad connecting both coasts of Canada...

https://s29755.pcdn.co/news/union-pacific-warns-about-downstream-impacts-of-kcs-merger

Canadian Pacific confident in KCS merger bid

A photograph of a Canadian Pacific train.

Canadian Pacific (NYSE: CP) isn’t planning on taking part in a bidding war with rival Canadian railway CN (NYSE: CNI) to acquire Kansas City Southern (NYSE: KSU), CP’s CEO said Wednesday.

“We’re not considering changing anything with our bid. We’re focused on getting our deal, which represents great value for the CP shareholder, the KCS [Kansas City Southern] shareholder,” CP President and CEO Keith Creel said Wednesday afternoon to investors during CP’s earnings call to discuss first-quarter...

https://www.freightwaves.com/news/canadian-pacific-confident-in-kcs-merger-bid

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