Railroad Week in Review:
First Quarter 2002
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ending March 30, 2002
Rail stocks ended the quarter generally ahead of the DJIA with NS and
FEC the big gainers. Providence & Worcester income declines by 50%
due to no asset sales. Canadian National shortline working group notes
are up at www.cn.ca. GATX is among the Top Ten holdings of a hot "value"
fund. Annual reports make good bedtime reading -- excerpts from NS,
BNSF, CP. Look for continuing emphasis on strengthening shortline-Class
I interchange process to include not only cars but event data.
ending March 23, 2002
Trinity Industries short sales up on railcar futures while rail stocks
go up on better operating efficiencies. Is EBITDA a good measure of
a company's performance? RailAmerica income for 4Q01 and the full year
up sharply, results restated to conform to class 1 reporting format.
switchman's dilemma. Matt Rose becomes BNSF Chairman on Rob Krebs' retirement.
ending March 16, 2002
Shares of the Big Six Class I rails sold off this week, with only BNSF
finishing unchanged at $30. NS was hardest hit, shedding 6% from its
Tuesday high. GNWR's three-for-two stock split hit Thursday for owners
of record Feb 28. Canadian National holds annual shortline meeting,
elimination of some RIA paper barriers, commits to quick action on a
number of pressing matters. Class I carloadings slide again in week
9; possible impact on Class II and II operators. Is there much room
left for share price increases or is all the growth already baked in?
GNWR management team additions. Forest products remain a mixed bag for
ending March 9, 2002
Rail stocks sold off sharply at the open on Friday after posting some
nice gains intraweek. Carloadings for Week 8 (2/23/2002) were up 2.7%
yoy and the second week in a row. NS completes $9.8 mm in Enola improvements.
CN buys 60 Dash-9s from GE. Further STB commentary on the BNSF Texas
build-in from a UP trackage rights line. KCS initiates Hazmat shippers
award. Shortlines get short shrift in AAR-class 1 security push.
ending March 2, 2002
Rail stocks surge with NS and UP in the lead. NIT League President Ed
Emmitt offers rail service observations and a new Coalition to unify
shippers. STB Chairman Linda Morgan encouraged by shortline performance
and "creative thought process." BNSF President Matt Rose rolls
out carload network redesign. UP/CSXT Express Lane increased revenues
20% last year, looks to repeat in 2002.
ending February 23, 2002
DM&E to acquire IMRL, get direct access to MSP, Chicago, KC. Florida
East Coast Industries takes earnings hits for the quarter, year on fiber-optics
venture; FEC rail doing well, thank you. Merchandise carload business
off in Week Six. CSXT program brings back moribund industry tracks from
the dead. A few remarks on what goes into calculating an operating ratio,
given the present accounting uproar.
ending February 16, 2002
RailAmerica revises earnings estimates down yet net margins will improve.
Genesee & Wyoming reports nice gains for the quarter and year. Estimates
at CSX and CP trimmed on traffic forecasts. CP to use Norfolk Southern
TYES in ops management. PennDot awards another $6 mm for track rehab.
Forest products producers outperform.
ending February 9, 2002
A veritable mixed bag this week. Tony Hatch comments on Earnings Week.
What to expect in 2002 and some thoughts on making money in a static
market for rail services. How value-added services and better fleet
management affect car builders. Tom Schlosser to head up RailAmerica's
Pacific Corridor. Library Company of Phila to exhibit William Rau photos
of the PRR in the 1890s. CSXT announces a fresh paint scheme.
ending February 2, 2002
the club this week as they announced a much improved railroad in 2001,
never mind what "everybody says" about the economy. Both the DM&E and
BNSF received approval from the STB for new rail lines, though the latter
was a challenge to find on a map. It took a 1955 Official Guide and
Yahoo.com maps to see how everything fits. Also, we made some changes
in last week's metrics matrix and added KCS.
ending January 26, 2002
week (BNSF, CP, CN, CSX, NS, UP) happened all at once and the results
were generally encouraging. Commentary is necessarily sparse, trying
to get all six reports in one issue. However, it is highly recommended
you spend a little time with the presentation slides available at the
investors' section of each railroad's website.
ending January 19, 2002
this week is on commercial opportunities for shortlines in 2002. Genesee
& Wyoming is now half overseas business; RailAmerica is less than a
quarter overseas. How will this affect their 2002 results? We also look
at 12 rail shipper complaints from the Morgan Stanley study and what
shortlines can do about them.
ending January 12, 2002
11 new rail line construction projects. Guidance from the WSJ on whether
or not to sell your small business to a larger business. Two Morgan
Stanley reports on the rail industry. In one, all rails downgraded to
neutral. In the other, shippers place CN in the lead with UP and CP
ending January 5, 2002
of Year 2001 stock performance by railroad: BNSF, CN, CP, CSXT, KCS,
NS, UP plus RailAmerica and Genesee & Wyoming. Suppliers results for
GATX and carbuilders. Why a shipper opts for truck over rail.