The Railroad Week in Review:
Second Quarter 1998
- Week ending June 27, 1998
How Union Pacific (NYSE: UNP) assesses delay costs; Railroad
downgrades across the board; Kansas City Southern announces reverse
split; Making money on railroad stock covered calls; RailTex acquires
Central Properties; Truck driver in South Shore crash flunks drug
test; Recent changes at Johnstown and Trinity; Amtrak crew outlaws,
- Week ending June 20, 1998
The booming business in west coast imports challenges BNSF, UP;
General Motors strike hits carloadings on UP, NS, CSX, CN; Canadian
National ahead of the curve this year in grain traffic; Wall Street
rates CSX, WC, CP; Canadian National inks long term agreement with
WC for overhead traffic; The latest on Emons preferred; Another look
at ABC Rail; More on the span of control thread.
- Week ending June 13, 1998
STB unanimously (two-to-zip) approves the Conrail transaction
with more than 40 conditions, shortlines do well; Gruntal reiterates
"strong buy" for UNP; Conway named SVP-Ops at CSX effective later this
month; further notes on "span of control" thread developed earlier.
- Week ending June 6, 1998
Merrill Lynch downgrades the major rails; UP's long-time CFO quits "to pursue
other opportunities;" Notes from the STB hearings re Conrail
transaction; Dividends: do you pay them or not; Impact on EMON
common if preferred were eliminated; commentary on mergers and a
managers' efffective "span of control."
- Week ending May 30
Danny Machalaba's Union Pacific Railroad paralysis analysis
as spread from the UP; Are railroads victems of their own success;
Unhappy UP shippers bring lawsuits; RailTex management changes;
Rhode Island port potential threat to New York; Railroad stocks
end May still trailing the S&P average.
- Week ending May 23
CN's Paul Tellier tells shippers about his long-term views; J. P. Morgan
initiates coverage of NS with a BUY; CSX continues B&O upgrades; STB issues CR
merger environmental study; CR merger timetable update; WC news here and
abroad; NTSB says dispatcher error caused UP's Texas crash; UP trucking firm
to be sold; WAB gets transit equipment order from Atlanta; TRN gets 850-car
order from FINA chemicals division; GBX and Bombardier to build freight cars
- Week ending May 16
Kodak files letter of support with STB re Ex Parte 575; CN to exit 1,600
miles of branchlines via sale and abandonment; Views from the BNSF analysts'
train ride over Stampede Pass; Report of a visit to GNMR's Oregon lines.
- Week ending May 9
Applying the "200-day Moving Average" to rail stocks; Pols fear rail
service disruptions will hurt grain moves, seek alternatives; RTEX posts
record quarter; Vendors group does well as HRMN, JAII, and MPO all post record
quarters; NS and CSX named to operate long-moribund Staten Island Railroad by
- Week ending May 2
WCLX reports 1Q98 income up 16% over 1Q97, discussion ofd WCLX stock price
behavior; RTEX to buy privately-held Indiana shortline group; RAIL gets CSX
line in Michigan; BNSF makes tracks in Missouri; GBX doubles earnings for
quarter just ended; Railroad stock summary YTD; Changes in and YTD results for
railroad vendor list.
- Week ending April 25
First quarter results were presented to analysts in NYC last week.
Burlington Northern Santa Fe $1.47 per share, up 55% from 1Q97;
CSX 47 cents a share down from 69 cents a years ago; Kansas City
Southern Industries earned 41 cents a share, up 62% over 1Q97,
while its rail unit's profit tripled to $9 mm after TFM exposure;
NS earnings hit another quarterly record, 61 cents a share, though
up just 2% over the year previous; UP loses $62 mm for the quarter
while Dadivson and company predict improvement based on better
performance numbers; NS and KCS open joint intermodal facility
in Port Arthur, Texas; Two takes on the STB and Linda Morgan from
Barron's and the Washington Post.
- Week ending April 18
Canadian National, Illinois Central, and Kansas City Southern
announce 15-year marketing alliance; Comparing stock price performance
of CN and CP; Illinois Central first quarter and YTD results;
Merrill Lynch begins coverage of Wisconsin Central with long term
buy; WC gets BBB- rating from S&P; Harmon annual report is good
reading; St Joe paper contemplating sale Apalachicola Northern
- Week ending April 11
RailTex results for March; further discussion of RTEX' track
porgram; RaiAmerica results and profitability analysis; shortline
contributions to NS total revenue picture grows with merger;
MotivePower Industries solidifies position as a provider of
low-horsepower locomotives; chemical companies contemplating
suits against UP; STB to reconsider revenue adequacy computation.
- Week ending April 4
More on truck diversions in NS/CSX; background on UTU, BLE merger;
STB mulls changes to the UP/SP merger format; giude to the UP website
on the service recovery process; more on UP's Mexican Stand-off;
BNSF offers permit system to expedite southbound Mexico traffic;
NS derails in Virginia; NS and Guilford announce intermodal pact;
KCS value in a spin-off revisited.
- Index for Jan - Mar 98
- Index for April - Dec 97
- Index for Dec 96 - March 97
Tell Us What You Think!
The goal of this site is to help short line managers, railroad
investors, and students of the industry find the tools necessary in
their respective areas of interest. The beauty of this medium lies
in its ability to educate and inform as it communicates. Send
© 1995-1998, The Blanchard Company, 2041 Christian Street,
Philadelphia PA 19146-1338, 215-985-1110 (voice) 215-985-1446 (fax). All