Third quarter earnings

CSX to engage workers, customers as it rolls out culture initiative

A CSX train passes by the Hudson River in New York.

As new CSX president and CEO Joe Hinrichs settles into his role, a major focus for the former auto executive will be instilling a company culture that values not only the railroad’s existing and potential customers but its employees as well.

The culture initiative, named “One CSX,” was actually established months ago, but recent tensions between the railroads and labor unions, as well as some distrust between shippers and the railroads because of service disruptions, make it an opportune time...

https://www.freightwaves.com/news/csx-to-engage-workers-customers-as-it-rolls-out-culture-initiative

Union Pacific upbeat about volume growth despite labor, macroeconomic uncertainties

While half of the railroad unions still need to approve and ratify their tentative agreements with U.S. freight railroads, one of the larger issues that has come up during the negotiation process has been reexamining what kind of work schedule locomotive engineers and conductors should have. 

Train engineers and conductors traditionally have had a schedule that has been considered unpredictable and erratic because it depends on the railroad’s ever-changing operational needs as well as...

https://www.freightwaves.com/news/union-pacific-upbeat-about-volume-growth-despite-labor-macroeconomic-uncertainties

Freight rail’s Q3 dominated by labor contract uncertainties, service issues

A man stands in front of a parked locomotive.

A last-minute tentative labor agreement struck by the railroads and the two largest U.S. railroad unions dominated the headlines in the third quarter. But headcount updates, questions about rail service improvements, a surprise announcement that there is a new CEO at CSX and efforts to fully restore service in the wake of Hurricane Ian also are expected to be addressed as the Class I railroads release their Q3 2022 earnings later this month. 

“These macro events are sort of overwhelming the...

https://www.freightwaves.com/news/freight-rails-q3-dominated-by-labor-contract-uncertainties-service-issues

Greenbrier: Customers support rail despite economic, political headwinds

A tank car sits in a grassy field.

Despite a backdrop of macroeconomic and global political uncertainties, most shippers and railroads right now are focusing more on easing rail congestion, executives with railcar manufacturer Greenbrier said during the company’s third-fiscal-quarter earnings call on Monday.

“I think everybody’s got an eye on the finish line. And everybody’s being smart about what they do. Our customers, you know, aren’t necessarily focused on recession as much as they’re focused on trying to get the product to...

https://www.freightwaves.com/news/greenbrier-customers-support-rail-despite-economic-political-headwinds

FreightCar America expects pent-up demand pressure to bolster orders

A photograph of a rail yard. A city is in the distance.

FreightCar America expects railcar orders to grow as the year moves into 2022 amid pent-up demand pressures to purchase new railcars, executives said during the company’s third-quarter 2021 earnings call on Monday. This demand release follows a third quarter in which customers seemed to halt their orders temporarily in order to avoid inflationary costs and higher steel prices, executives said.

There is some hesitation from would-be buyers to commit to purchasing railcars amid significantly...

https://www.freightwaves.com/news/freightcar-america-expects-pent-up-demand-pressure-to-bolster-orders

BNSF’s Q3 net income grows 14% on higher revenue

Higher revenues helped BNSF’s third-quarter net profit rise by 14%, to $1.5 billion, the western U.S. railroad reported Monday.

In contrast, BNSF’s net income in the third quarter of 2020 was $1.3 billion. The railroad is owned by Berkshire Hathaway (NYSE: BRK.B), which filed its quarterly results with the U.S. Securities and Exchange Commission on Monday. 

Total revenues were $5.8 billion in the third quarter, a 12% increase from nearly $5.2 billion year-over-year. The average revenue per...

https://www.freightwaves.com/news/bnsfs-q3-net-income-grows-14-on-higher-revenue

Wabtec sees underlying demand amid dampening market pressures

A photograph of a train locomotive crossing over a bridge.

The chip shortage and supply chain disruptions may have put pressure on Wabtec’s freight segment in the third quarter, but the underlying demand is still there and should bode well for the company in the fourth quarter, executives said during Wabtec’s third-quarter 2021 earnings call Wednesday.

“We believe that the underlying customer demand for our products and the end market momentum remains strong” even though there may be continued headwinds from a more challenging sales and cost environment...

https://www.freightwaves.com/news/wabtec-sees-underlying-demand-amid-dampening-market-pressures

Hub Group CEO: No end in sight for strong demand, tight capacity

A photograph of a train hauling Hub Group intermodal containers.

Third-party logistics company Hub Group sees market conditions supporting inventory imbalances to persist through much of 2022, executives said during Hub Group’s third-quarter 2021 earnings call late Thursday.

“Strong demand continues as inventory-to-sales ratios are at near all-time lows while intense restocking of the shelves persist,” Hub Group (NASDAQ: HUBG) CEO Dave Yeager told investors. “On the second-quarter call [in July], we related that we believe that this strong demand and tight...

https://www.freightwaves.com/news/hub-group-ceo-no-end-in-sight-for-strong-demand-tight-capacity

Trinity Industries, GATX anticipate market growth to be ‘nonlinear’

A photograph of a train hauling a variety of railcars.

Railcar lessors Trinity Industries and GATX recenyl reported their third-quarter 2021 financial results:

Trinity eyes ‘stronger underlying leasing dynamics’

Although higher railcar loadings and increased levels of rail traffic are boosting demand for leasing railcars, Trinity Industries expects market growth for railcar leasing to be choppy as supply chain disruptions continue to be a headwind.

“We believe stronger underlying leasing dynamics and higher car pricing should continue to positively...

https://www.freightwaves.com/news/trinity-industries-gatx-anticipate-market-growth-to-be-nonlinear

Labor shortages in dray, warehousing hit Norfolk Southern’s Q3 intermodal traffic

A photopgraph of tank cars parked in a rail yard.

Norfolk Southern’s third-quarter earnings call Wednesday touched on two themes that have been prevalent among the rails this earnings season: the need to attract and retain employees  and the impact of labor shortages in warehousing and drayage on NS’ intermodal service.

NS (NYSE: NSC) has been hiring aggressively since the beginning of the year, said President and CEO Jim Squires during the call with transportation analysts. “We’re putting a lot of people through the pipeline and into the...

https://www.freightwaves.com/news/labor-shortages-in-dray-warehousing-hit-norfolk-southerns-q3-intermodal-traffic

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