fourth-quarter earnings

FreightCar America sees opportunity in continued high scrapping levels in 2022

A photograph of a railcar in a yard.

Continued elevated levels for scrapping railcars are likely to persist in 2022, which should benefit railcar manufacturer FreightCar America this year, company executives said during the company’s fourth-quarter 2021 earnings call.

“Since 2020, railcar annual scrapping figures have outpaced deliveries and historical replacement demand as customers retire older and less efficient railcar assets,” Matthew Tonn, FreightCar America (NASDAQ: RAIL) chief commercial officer, told investors on Tuesday....

https://www.freightwaves.com/news/freightcar-america-sees-opportunity-in-continued-high-scrapping-levels-in-2022

BNSF profit grows 13% to $1.7B despite supply chain ‘challenges’

BNSF’s fourth-quarter 2021 net profit rose 13% amid an 11% gain in revenues, the western U.S. railroad reported.

Net income was $1.7 billion for the company in the fourth quarter of 2021, compared with net income of $1.5 billion in the fourth quarter of 2020. BNSF (NYSE: BRK.B) is privately held by Berkshire Hathaway. 

Total revenues rose 11% in the fourth quarter to $6.3 billion. 

Of that, consumer products revenue grew 7% to $2.2 billion despite a 9% loss in volumes that occurred “due to broad...

https://www.freightwaves.com/news/bnsf-profit-grows-13-to-17b-despite-supply-chain-challenges

Trinity Industries sees supportive market for railcar lessors

Like its peers, railcar lessor Trinity Industries expects improving macroeconomic conditions to support the company in 2022. Anticipated higher rail volumes for agricultural products, chemicals and construction materials may support demand for boxcars, gondolas and covered hoppers, Trinity President and CEO Jean Savage told investors during the company’s fourth-quarter 2021 earnings call Thursday.

“Considering both the supportive industry environment and our internal business optimization work,...

https://www.freightwaves.com/news/trinity-industries-sees-supportive-market-for-railcar-lessors

Wabtec Q4 net income climbs on higher gross profit

Rail technology provider Wabtec saw fourth-quarter 2021 net income grow 116% to $190 million, or $1.02 per diluted share, compared with $88 million, or 46 cents per diluted share, in the fourth quarter of 2020.

Adjusted earnings per diluted share was $1.18, which is 20.4% higher year-over-year.

A higher gross profit in the fourth quarter, due to higher sales as well as lower cost of sales, helped pull fourth-quarter net income higher. Gross profit rose 29% to $652 million, compared with $506...

https://www.freightwaves.com/news/wabtec-q4-net-income-climbs-on-higher-gross-profit

Canadian Pacific: Divestiture not on the table in KCS deal

As federal regulators consider whether to approve the proposed merger of Canadian Pacific and Kansas City Southern, CP expects to work with other stakeholders on some aspects of the merger — but don’t expect that to include unreasonable requests from other Class I railroads, CP President and CEO Keith Creel said during CP’s fourth-quarter 2021 earnings call late Thursday.

“When it comes to significant concessions, the facts don’t support it — specifically divestiture,” said Creel, referring to...

https://www.freightwaves.com/news/canadian-pacific-divestiture-not-on-the-table-in-kcs-deal

KCS sees opportunities for ‘productivity gains when volume recoveries occur’

Although refined products volumes to Mexico have been curtailed by a government crackdown on companies seeking to avoid paying taxes, Kansas City Southern still expects growth opportunities for shipping imported refined products into Mexico in the long term, KCS executives told investors Thursday while they were on a fourth-quarter 2021 earnings call earnings call with Canadian Pacific.

KCS executives were on CP’s (NYSE: CP) earnings call because of the agreement between both companies to merge....

https://www.freightwaves.com/news/kcs-sees-opportunities-for-productivity-gains-when-volume-recoveries-occur

Norfolk Southern laying groundwork for longer trains, balanced network

As Norfolk Southern looks to 2022, it seeks to implement the next stage of its precision scheduled railroading (PSR) program, with goals that include creating longer trains, continuing productivity initiatives and finding growth opportunities, according to executives speaking on a call with investors to discuss fourth-quarter 2021 results. 

This next stage is “a continuation of our PSR journey. It’s the next generation of it. We implemented TOP21 [NS’ version of PSR], which was really largely...

https://www.freightwaves.com/news/norfolk-southern-laying-groundwork-for-longer-trains-balanced-network

CN expects to benefit from vaccine mandate for cross-border truckers

The driver shortage, which some observers say has exacerbated by the U.S. and Canadian vaccine mandates restricting truck drivers’ cross-border movement, will benefit CN as current and prospective customers seek rail as a freight alternative to trucking, executives said during a call with investors late Tuesday afternoon to discuss fourth-quarter 2021 financial results.

“The driver shortages and the lack of truck capacity are things that are boding well for us to pick up some volume” as the...

https://www.freightwaves.com/news/cn-expects-to-benefit-from-vaccine-mandate-for-cross-border-truckers

GATX upbeat on 2022 railcar leasing market

Railcar lessor GATX anticipates a favorable railcar leasing market for 2022 amid demand for railcars in North America and Europe.

The company expects market lease rates to increase above average expiring rates for railcars renewing during the year, said GATX (NYSE: GATX) President and CEO Brian A. Kenney in a Tuesday release. Combined with higher asset disposition plans, GATX’s North America segment is expected to see higher segment profit in 2022.

“For the first time in years, the market for...

https://www.freightwaves.com/news/gatx-upbeat-on-2022-railcar-leasing-market

CSX ramps up hiring to match volume expectations

CSX hopes to have people in place to handle anticipated volume growth in 2022, particularly in the second half of the year, according to executives speaking on CSX’s fourth-quarter 2021 earnings call late Thursday.

The eastern U.S. railroad said the lack of available employees due to COVID-19-induced absences stymied CSX’s ability to fully market demand in the fourth quarter. 

“CSX is no different than any other industry right now, where we have been challenged finding people to come to work. And...

https://www.freightwaves.com/news/csx-ramps-up-hiring-to-match-volume-expectations

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